Bill Text: IL SB0009 | 2017-2018 | 100th General Assembly | Chaptered


Bill Title: Creates the Sugar-Sweetened Beverage Tax Act. Imposes a tax on distributors of bottled sugar-sweetened beverages, syrups, or powders at the rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Requires those distributors to obtain permits. Provides that 2% of the moneys shall be deposited into the Tax Compliance and Administration Fund for the administrative costs of the Department of Revenue, and 98% of the moneys shall be deposited into the General Revenue Fund. Amends the Illinois Income Tax Act. Makes changes concerning the rate of tax. Extends the research and development credit for tax years ending prior to January 1, 2027. Creates an addition modification in an amount equal to the deduction for qualified domestic production activities allowed under Section 199 of the Internal Revenue Code. Makes changes concerning the definition of "unitary business group". Makes changes concerning estimated taxes. Amends the Film Production Services Tax Credit Act of 2008. Provides that no taxpayer may take a credit awarded under the Act for tax years beginning on or after January 1, 2027. Amends the Business Corporation Act of 1983. Makes changes concerning penalties and reports. Amends the Limited Liability Company Act. Makes changes concerning the fee for filing articles of organization. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, 12, and 13 of the 100th General Assembly become law.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2017-07-06 - Public Act . . . . . . . . . 100-0022 [SB0009 Detail]

Download: Illinois-2017-SB0009-Chaptered.html



Public Act 100-0022
SB0009 EnrolledLRB100 06347 HLH 16385 b
AN ACT concerning revenue.
WHEREAS, the changes made by this Act are made under
subsection (a) of Section 3 of Article IX of the Illinois
Constitution. If there are future changes made to subsection
(a) of Section 3 of Article IX of the Illinois Constitution,
then it may result in evaluating the taxes on income imposed by
this Act; therefore
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1. STATE TAX LIEN REGISTRATION ACT
Section 1-1. Short title. This Act may be cited as the
State Tax Lien Registration Act. References in this Article to
"this Act" mean this Article.
Section 1-5. Purpose.
(a) The purpose of this Act is to provide a uniform
statewide system for filing notices of tax liens that are in
favor of or enforced by the Department. The Department shall
maintain the system.
(b) The scope of this Act is limited to tax liens in real
property and personal property, tangible and intangible, of
taxpayers or other persons against whom the Department has
liens pursuant to law for unpaid final tax liabilities
administered by the Department.
(c) Nothing in this Act shall be construed to invalidate
any lien filed by the Department with a county recorder of
deeds prior to the effective date of this Act.
Section 1-10. Definitions.
"Debtor" means a taxpayer or other person against whom
there is an unpaid final tax liability collectible by the
Department.
"Department" means the Department of Revenue.
"Final tax liability" means any State tax, fee, penalty, or
interest owed by a person to the Department where the
assessment of the liability is not subject to any further
timely filed administrative or judicial review.
"Last-known address of the debtor" means the address of the
debtor appearing in the records of the Department at the time
the notice of tax lien is filed in the registry.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
"Registry" or "State Tax Lien Registry" means the public
database maintained by the Department wherein tax liens are
filed in favor of and enforced by the Department.
Section 1-15. Registry established.
(a) The Department shall establish and maintain a public
database known as the State Tax Lien Registry. If any person
neglects or refuses to pay any final tax liability, the
Department may file in the registry a notice of tax lien within
3 years from the date of the final tax liability.
(b) The notice of tax lien file shall include:
(1) the name and last-known address of the debtor;
(2) the name and address of the Department;
(3) the tax lien number assigned to the lien by the
Department; and
(4) the basis for the tax lien, including, but not
limited to, the amount owed by the debtor as of the date of
filing in the tax lien registry.
Section 1-20. Tax lien perfected.
(a) When a notice of tax lien is filed by the Department in
the registry, the tax lien is perfected and shall be attached
to all of the existing and after-acquired property of the
debtor, both real and personal, tangible and intangible, which
is located in any and all counties within the State of
Illinois.
(b) The amount of the tax lien shall be a debt due the
State of Illinois and shall remain a lien upon all property and
rights to property belonging to the debtor, both real and
personal, tangible and intangible, which is located in any and
all counties within the State of Illinois. Interest and penalty
shall accrue on the tax lien at the same rate and with the same
restrictions, if any, as specified by statute for the accrual
of interest and penalty for the type of tax or taxes for which
the tax lien was issued.
Section 1-25. Time period of lien.
(a) A notice of tax lien shall be a lien upon the debtor's
property located anywhere in the State for a period of 20 years
from the date of filing unless it is sooner released by the
Department.
(b) A notice of release of tax lien filed in the registry
shall constitute a release of the tax lien within the
Department, the registry, and the county in which the tax lien
was previously filed. The information contained on the registry
shall be controlling, and the registry shall supersede the
records of any county.
Section 1-30. Registry format.
(a) The Department shall maintain notices of tax liens
filed in the registry after the effective date of this Act in
its information management system in a form that permits the
information to be readily accessible in an electronic form
through the Internet and to be reduced to printed form. The
electronic and printed form shall include the following
information:
(1) the name of the taxpayer;
(2) the name and address of the Department;
(3) the tax lien number assigned to the lien by the
Department;
(4) the amount of the taxes, penalties, interest, and
fees indicated due on the notice of tax lien received from
the Department; and
(5) the date and time of filing.
(b) Information in the registry shall be searchable by name
of debtor or by tax lien number. The Department shall not
charge for access to information in the registry.
(c) The Department is authorized to sell at bulk the
information appearing on the tax lien registry. In selling the
information, the Department shall adopt rules governing the
process by which the information will be sold and the media or
method by which it will be available to the purchaser and shall
set a price for the information that will at least cover the
cost of producing the information. The proceeds from the sale
of bulk information shall be retained by the Department and
used to cover its cost to produce the information sold and to
maintain the registry.
(d) Registry information, whether accessed by name of
debtor or by tax lien number at no charge, through a bulk sale
of information, or by other means, shall not be used for
survey, marketing, or solicitation purposes. Survey,
marketing, or solicitation purpose does not include any action
by the Department or its authorized agent to collect a debt
represented by a tax lien appearing in the registry. The
Attorney General may bring an action in any court of competent
jurisdiction to enjoin the unlawful use of registry information
for survey, marketing, or solicitation purposes and to recover
the cost of such action, including reasonable attorney's fees.
Section 1-35. Rulemaking. The Department may adopt rules in
accordance with the Illinois Administrative Procedure Act to
enforce the provisions of this Act.
Section 1-40. Conflicts. In the event of conflict between
this Act and any other law, this Act shall control.
ARTICLE 15. REVISED UNIFORM UNCLAIMED PROPERTY ACT
ARTICLE 1. GENERAL PROVISIONS
Section 15-101. Short title. This Act may be cited as the
Revised Uniform Unclaimed Property Act. References in this
Article 15 (the Revised Uniform Unclaimed Property Act) to
"this Act" mean this Article 15 (the Revised Uniform Unclaimed
Property Act).
Section 15-102. Definitions. In this Act:
(1) "Administrator" means the State Treasurer.
(2) "Administrator's agent" means a person with which
the administrator contracts to conduct an examination
under Article 10 on behalf of the administrator. The term
includes an independent contractor of the person and each
individual participating in the examination on behalf of
the person or contractor.
(2.5) "Affiliated group of merchants" means 2 or more
affiliated merchants or other persons that are related by
common ownership or common corporate control and that share
the same name, mark, or logo. The term also applies to 2 or
more merchants or other persons that agree among
themselves, by contract or otherwise, to redeem cards,
codes, or other devices bearing the same name, mark, or
logo (other than the mark, logo, or brand of a payment
network), for the purchase of goods or services solely at
such merchants or persons. However, merchants or other
persons are not considered to be affiliated merely because
they agree to accept a card that bears the mark, logo, or
brand of a payment network.
(3) "Apparent owner" means a person whose name appears
on the records of a holder as the owner of property held,
issued, or owing by the holder.
(4) "Business association" means a corporation, joint
stock company, investment company, unincorporated
association, joint venture, limited liability company,
business trust, trust company, land bank, safe deposit
company, safekeeping depository, financial organization,
insurance company, federally chartered entity, utility,
sole proprietorship, or other business entity, whether or
not for profit.
(5) "Confidential information" means information that
is "personal information" under the Personal Information
Protection Act, "private information" under the Freedom of
Information Act or personal information contained within
public records, the disclosure of which would constitute a
clearly unwarranted invasion of personal privacy, unless
the disclosure is consented to in writing by the individual
subjects of the information as provided in the Freedom of
Information Act.
(6) "Domicile" means:
(A) for a corporation, the state of its
incorporation;
(B) for a business association whose formation
requires a filing with a state, other than a
corporation, the state of its filing;
(C) for a federally chartered entity or an
investment company registered under the Investment
Company Act of 1940, the state of its home office; and
(D) for any other holder, the state of its
principal place of business.
(7) "Electronic" means relating to technology having
electrical, digital, magnetic, wireless, optical,
electromagnetic, or similar capabilities.
(8) "Electronic mail" means a communication by
electronic means which is automatically retained and
stored and may be readily accessed or retrieved.
(9) "Financial organization" means a bank, savings
bank, corporate fiduciary, currency exchange, money
transmitter, or credit union.
(10) "Game-related digital content" means digital
content that exists only in an electronic game or
electronic-game platform. The term:
(A) includes:
(i) game-play currency such as a virtual
wallet, even if denominated in United States
currency; and
(ii) the following if for use or redemption
only within the game or platform or another
electronic game or electronic-game platform:
(I) points sometimes referred to as gems,
tokens, gold, and similar names; and
(II) digital codes; and
(B) does not include an item that the issuer:
(i) permits to be redeemed for use outside a
game or platform for:
(I) money; or
(II) goods or services that have more than
minimal value; or
(ii) otherwise monetizes for use outside a
game or platform.
(11) "Gift card" means:
(A) a stored-value card:
(i) issued on a prepaid basis in a specified
amount;
(ii) the value of which does not expire;
(iii) that is not subject to a dormancy,
inactivity, or service fee;
(iv) that may be decreased in value only by
redemption for merchandise, goods, or services
upon presentation at a single merchant or an
affiliated group of merchants;
(v) that, unless required by law, may not be
redeemed for or converted into money or otherwise
monetized by the issuer; and
(B) includes a prepaid commercial mobile radio
service, as defined in 47 C.F.R. 20.3, as amended.
(12) "Holder" means a person obligated to hold for the
account of, or to deliver or pay to, the owner, property
subject to this Act.
(13) "Insurance company" means an association,
corporation, or fraternal or mutual-benefit organization,
whether or not for profit, engaged in the business of
providing life endowments, annuities, or insurance,
including accident, burial, casualty, credit-life,
contract-performance, dental, disability, fidelity, fire,
health, hospitalization, illness, life, malpractice,
marine, mortgage, surety, wage-protection, and
worker-compensation insurance.
(14) "Loyalty card" means a record given without direct
monetary consideration under an award, reward, benefit,
loyalty, incentive, rebate, or promotional program which
may be used or redeemed only to obtain goods or services or
a discount on goods or services. The term does not include
a record that may be redeemed for money or otherwise
monetized by the issuer.
(15) "Mineral" means gas, oil, coal, oil shale, other
gaseous liquid or solid hydrocarbon, cement material, sand
and gravel, road material, building stone, chemical raw
material, gemstone, fissionable and nonfissionable ores,
colloidal and other clay, steam and other geothermal
resources, and any other substance defined as a mineral by
law of this State other than this Act.
(16) "Mineral proceeds" means an amount payable for
extraction, production, or sale of minerals, or, on the
abandonment of the amount, an amount that becomes payable
after abandonment. The term includes an amount payable:
(A) for the acquisition and retention of a mineral
lease, including a bonus, royalty, compensatory
royalty, shut-in royalty, minimum royalty, and delay
rental;
(B) for the extraction, production, or sale of
minerals, including a net revenue interest, royalty,
overriding royalty, extraction payment, and production
payment; and
(C) under an agreement or option, including a
joint-operating agreement, unit agreement, pooling
agreement, and farm-out agreement.
(17) "Money order" means a payment order for a
specified amount of money. The term includes an express
money order and a personal money order on which the
remitter is the purchaser.
(18) "Municipal bond" means a bond or evidence of
indebtedness issued by a municipality or other political
subdivision of a state.
(19) "Net card value" means the original purchase price
or original issued value of a stored-value card, plus
amounts added to the original price or value, minus amounts
used and any service charge, fee, or dormancy charge
permitted by law.
(20) "Non-freely transferable security" means a
security that cannot be delivered to the administrator by
the Depository Trust Clearing Corporation or similar
custodian of securities providing post-trade clearing and
settlement services to financial markets or cannot be
delivered because there is no agent to effect transfer. The
term includes a worthless security.
(21) "Owner" means a person that has a legal,
beneficial, or equitable interest in property subject to
this Act or the person's legal representative when acting
on behalf of the owner. The term includes:
(A) a depositor, for a deposit;
(B) a beneficiary, for a trust other than a deposit
in trust;
(C) a creditor, claimant, or payee, for other
property; and
(D) the lawful bearer of a record that may be used
to obtain money, a reward, or a thing of value.
(22) "Payroll card" means a record that evidences a
payroll-card account as defined in Regulation E, 12 CFR
Part 1005, as amended.
(23) "Person" means an individual, estate, business
association, public corporation, government or
governmental subdivision, agency, or instrumentality, or
other legal entity whether or not for profit.
(24) "Property" means tangible property described in
Section 15-201 or a fixed and certain interest in
intangible property held, issued, or owed in the course of
a holder's business or by a government, governmental
subdivision, agency, or instrumentality. The term:
(A) includes all income from or increments to the
property;
(B) includes property referred to as or evidenced
by:
(i) money, virtual currency, interest, or a
dividend, check, draft, deposit, or payroll card;
(ii) a credit balance, customer's overpayment,
stored-value card, security deposit, refund,
credit memorandum, unpaid wage, unused ticket for
which the issuer has an obligation to provide a
refund, mineral proceeds, or unidentified
remittance;
(iii) a security except for:
(I) a worthless security; or
(II) a security that is subject to a lien,
legal hold, or restriction evidenced on the
records of the holder or imposed by operation
of law, if the lien, legal hold, or restriction
restricts the holder's or owner's ability to
receive, transfer, sell, or otherwise
negotiate the security;
(iv) a bond, debenture, note, or other
evidence of indebtedness;
(v) money deposited to redeem a security, make
a distribution, or pay a dividend;
(vi) an amount due and payable under an annuity
contract or insurance policy; and
(vii) an amount distributable from a trust or
custodial fund established under a plan to provide
health, welfare, pension, vacation, severance,
retirement, death, stock purchase, profit-sharing,
employee-savings, supplemental-unemployment
insurance, or a similar benefit; and
(C) does not include:
(i) game-related digital content;
(ii) a loyalty card; or
(iii) a gift card.
(25) "Putative holder" means a person believed by the
administrator to be a holder, until the person pays or
delivers to the administrator property subject to this Act
or the administrator or a court makes a final determination
that the person is or is not a holder.
(26) "Record" means information that is inscribed on a
tangible medium or that is stored in an electronic or other
medium and is retrievable in perceivable form. The phrase
"records of the holder" includes records maintained by a
third party that has contracted with the holder.
(27) "Security" means:
(A) a security as defined in Article 8 of the
Uniform Commercial Code;
(B) a security entitlement as defined in Article 8
of the Uniform Commercial Code, including a customer
security account held by a registered broker-dealer,
to the extent the financial assets held in the security
account are not:
(i) registered on the books of the issuer in
the name of the person for which the broker-dealer
holds the assets;
(ii) payable to the order of the person; or
(iii) specifically indorsed to the person; or
(C) an equity interest in a business association
not included in subparagraph (A) or (B).
(28) "Sign" means, with present intent to authenticate
or adopt a record:
(A) to execute or adopt a tangible symbol; or
(B) to attach to or logically associate with the
record an electronic symbol, sound, or process.
(29) "State" means a state of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United
States.
(30) "Stored-value card" means a record evidencing a
promise made for consideration by the seller or issuer of
the record that goods, services, or money will be provided
to the owner of the record to the value or amount shown in
the record. The term:
(A) includes:
(i) a record that contains or consists of a
microprocessor chip, magnetic strip, or other
means for the storage of information, which is
prefunded and whose value or amount is decreased on
each use and increased by payment of additional
consideration; and
(ii) a gift card and payroll card; and
(B) does not include a loyalty card or game-related
digital content.
(31) "Utility" means a person that owns or operates for
public use a plant, equipment, real property, franchise, or
license for the following public services:
(A) transmission of communications or information;
(B) production, storage, transmission, sale,
delivery, or furnishing of electricity, water, steam,
or gas; or
(C) provision of sewage or septic services, or
trash, garbage, or recycling disposal.
(32) "Virtual currency" means a digital representation
of value used as a medium of exchange, unit of account, or
store of value, which does not have legal tender status
recognized by the United States. The term does not include:
(A) the software or protocols governing the
transfer of the digital representation of value;
(B) game-related digital content; or
(C) a loyalty card or gift card.
(33) "Worthless security" means a security whose cost
of liquidation and delivery to the administrator would
exceed the value of the security on the date a report is
due under this Act.
Section 15-103. Inapplicability to foreign transaction.
This Act does not apply to property held, due, and owing in a
foreign country if the transaction out of which the property
arose was a foreign transaction.
Section 15-104. Rulemaking. The administrator may adopt
rules to implement and administer this Act pursuant to the
Illinois Administrative Procedure Act.
ARTICLE 2. PRESUMPTION OF ABANDONMENT
Section 15-201. When property presumed abandoned. Subject
to Section 15-210, the following property is presumed abandoned
if it is unclaimed by the apparent owner during the period
specified below:
(1) a traveler's check, 15 years after issuance;
(2) a money order, 7 years after issuance;
(3) (Blank).
(4) a state or municipal bond, bearer bond, or
original-issue-discount bond, 3 years after the earliest
of the date the bond matures or is called or the obligation
to pay the principal of the bond arises;
(5) a debt of a business association, 3 years after the
obligation to pay arises;
(6) a demand, savings, or time deposit, 3 years after
the later of maturity or the date of the last indication of
interest in the property by the apparent owner, except for
a deposit that is automatically renewable, 3 years after
its initial date of maturity unless the apparent owner
consented in a record on file with the holder to renewal at
or about the time of the renewal;
(7) money or a credit owed to a customer as a result of
a retail business transaction, other than in-store credit
for returned merchandise, other than a stored-value card, 3
years after the obligation arose;
(8) an amount owed by an insurance company on a life or
endowment insurance policy or an annuity contract that has
matured or terminated, 3 years after the obligation to pay
arose under the terms of the policy or contract or, if a
policy or contract for which an amount is owed on proof of
death has not matured by proof of the death of the insured
or annuitant, as follows:
(A) with respect to an amount owed on a life or
endowment insurance policy, the earlier of:
(i) 3 years after the death of the insured; or
(ii) 2 years after the insured has attained, or
would have attained if living, the limiting age
under the mortality table on which the reserve for
the policy is based; and
(B) with respect to an amount owed on an annuity
contract, 3 years after the death of the annuitant.
(9) funds on deposit or held in trust for the
prepayment of a funeral or other funeral-related expenses,
the earliest of:
(A) 2 years after the date of death of the
beneficiary;
(B) one year after the date the beneficiary has
attained, or would have attained if living, the age of
105 where the holder does not know whether the
beneficiary is deceased;
(C) 30 years after the contract for prepayment was
executed;
(10) property distributable by a business association
in the course of dissolution or distributions from the
termination of a retirement plan, one year after the
property becomes distributable;
(11) property held by a court, including property
received as proceeds of a class action, 3 years after the
property becomes distributable;
(12) property held by a government or governmental
subdivision, agency, or instrumentality, including
municipal bond interest and unredeemed principal under the
administration of a paying agent or indenture trustee, 3
years after the property becomes distributable;
(13) wages, commissions, bonuses, or reimbursements to
which an employee is entitled, or other compensation for
personal services, including amounts held on a payroll
card, one year after the amount becomes payable;
(14) a deposit or refund owed to a subscriber by a
utility, one year after the deposit or refund becomes
payable, except that any capital credits or patronage
capital retired, returned, refunded or tendered to a member
of an electric cooperative, as defined in Section 3.4 of
the Electric Supplier Act, or a telephone or
telecommunications cooperative, as defined in Section
13-212 of the Public Utilities Act, that has remained
unclaimed by the person appearing on the records of the
entitled cooperative for more than 2 years, shall not be
subject to, or governed by, any other provisions of this
Act, but rather shall be used by the cooperative for the
benefit of the general membership of the cooperative; and
(15) property not specified in this Section or Sections
15-202 through 15-208, the earlier of 3 years after the
owner first has a right to demand the property or the
obligation to pay or distribute the property arises.
Notwithstanding anything to the contrary in this Section
15-201, and subject to Section 15-210, a deceased owner cannot
indicate interest in his or her property. If the owner is
deceased and the abandonment period for the owner's property
specified in this Section 15-201 is greater than 2 years, then
the property, other than an amount owed by an insurance company
on a life or endowment insurance policy or an annuity contract
that has matured or terminated, shall instead be presumed
abandoned 2 years from the date of the owner's last indication
of interest in the property.
Section 15-202. When tax-deferred retirement account
presumed abandoned.
(a) Subject to Section 15-210, property held in a pension
account or retirement account that qualifies for tax deferral
under the income-tax laws of the United States is presumed
abandoned if it is unclaimed by the apparent owner after the
later of:
(1) 3 years after the following dates:
(A) except as in subparagraph (B), the date a
communication sent by the holder by first-class United
States mail to the apparent owner is returned to the
holder undelivered by the United States Postal
Service; or
(B) if such communication is re-sent within 30 days
after the date the first communication is returned
undelivered, the date the second communication was
returned undelivered by the United States Postal
Service; or
(2) the earlier of the following dates:
(A) 3 years after the date the apparent owner
becomes 70.5 years of age, if determinable by the
holder; or
(B) one year after the date of mandatory
distribution following death if the Internal Revenue
Code requires distribution to avoid a tax penalty and
the holder:
(i) receives confirmation of the death of the
apparent owner in the ordinary course of its
business; or
(ii) confirms the death of the apparent owner
under subsection (b).
(b) If a holder in the ordinary course of its business
receives notice or an indication of the death of an apparent
owner and subsection (a)(2) applies, the holder shall attempt
not later than 90 days after receipt of the notice or
indication to confirm whether the apparent owner is deceased.
(c) If the holder does not send communications to the
apparent owner of an account described in subsection (a) by
first-class United States mail on at least an annual basis, the
holder shall attempt to confirm the apparent owner's interest
in the property by sending the apparent owner an
electronic-mail communication not later than 2 years after the
apparent owner's last indication of interest in the property.
However, the holder promptly shall attempt to contact the
apparent owner by first-class United States mail if:
(1) the holder does not have information needed to send
the apparent owner an electronic mail communication or the
holder believes that the apparent owner's electronic mail
address in the holder's records is not valid;
(2) the holder receives notification that the
electronic-mail communication was not received; or
(3) the apparent owner does not respond to the
electronic-mail communication within 30 days after the
communication was sent.
(d) If first-class United States mail sent under subsection
(c) is returned to the holder undelivered by the United States
Postal Service, the property is presumed abandoned 3 years
after the later of:
(1) except as in paragraph (2), the date a
communication to contact the apparent owner sent by
first-class United States mail is returned to the holder
undelivered;
(2) if such communication is re-sent within 30 days
after the date the first communication is returned
undelivered, the date the second communication was
returned undelivered; or
(3) the date established by subsection (a)(2).
Section 15-203. When other tax-deferred account presumed
abandoned.
(a) Subject to Section 15-210 and except for property
described in Section 15-202, property held in an account or
plan, including a health savings account, that qualifies for
tax deferral under the income-tax laws of the United States is
presumed abandoned if it is unclaimed by the apparent owner 3
years after the earlier of:
(1) the date, if determinable by the holder, specified
in the income-tax laws and regulations of the United States
by which distribution of the property must begin to avoid a
tax penalty, with no distribution having been made; or
(2) 30 years after the date the account was opened.
(b) If the owner is deceased, then property subject to this
Section is presumed abandoned 2 years from the earliest of:
(1) the date of the distribution or attempted
distribution of the property;
(2) the date of the required distribution as stated in
the plan or trust agreement governing the plan; or
(3) the date, if determinable by the holder, specified
in the income tax laws of the United States by which
distribution of the property must begin in order to avoid a
tax penalty.
Section 15-204. When custodial account for minor presumed
abandoned.
(a) Subject to Section 15-210, property held in an account
established under a state's Uniform Gifts to Minors Act or
Uniform Transfers to Minors Act is presumed abandoned if it is
unclaimed by or on behalf of the minor on whose behalf the
account was opened 3 years after the later of:
(1) except as in subparagraph (2), the date a
communication sent by the holder by first-class United
States mail to the custodian of the minor on whose behalf
the account was opened is returned undelivered to the
holder by the United States Postal Service;
(2) if a communication is re-sent within 30 days after
the date the first communication is returned undelivered,
the date the second communication was returned
undelivered; or
(3) the date on which the custodian is required to
transfer the property to the minor or the minor's estate in
accordance with the Uniform Gifts to Minors Act or Uniform
Transfers to Minors Act of the state in which the account
was opened.
(b) If the holder does not send communications to the
custodian of the minor on whose behalf an account described in
subsection (a) was opened by first-class United States mail on
at least an annual basis, the holder shall attempt to confirm
the custodian's interest in the property by sending the
custodian an electronic-mail communication not later than 2
years after the custodian's last indication of interest in the
property. However, the holder promptly shall attempt to contact
the custodian by first-class United States mail if:
(1) the holder does not have information needed to send
the custodian an electronic mail communication or the
holder believes that the custodian's electronic-mail
address in the holder's records is not valid;
(2) the holder receives notification that the
electronic-mail communication was not received; or
(3) the custodian does not respond to the
electronic-mail communication within 30 days after the
communication was sent.
(c) If first-class United States mail sent under subsection
(b) is returned undelivered to the holder by the United States
Postal Service, the property is presumed abandoned 3 years
after the later of:
(1) the date a communication to contact the custodian
by first-class United States mail is returned to the holder
undelivered by the United States Postal Service; or
(2) the date established by subsection (a)(3).
(d) Notwithstanding any other provision of this Act, money
of a minor deposited pursuant to Section 24-21 of the Probate
Act of 1975 shall not be presumed abandoned earlier than 3
years after the minor attains legal age. Such money shall be
deposited into an account which shall indicate the date of
birth of the minor.
(e) (Blank).
(f) When the property in the account described in
subsections (a) or (d) is transferred to the minor on whose
behalf an account was opened or to the minor's estate, the
property in the account is no longer subject to this Section.
Section 15-205. When contents of safe-deposit box presumed
abandoned. Tangible property held in a safe-deposit box are
presumed abandoned if the property remains unclaimed by the
apparent owner 5 years after the expiration of the lease or
rental period for the box.
Section 15-206. When stored-value card presumed abandoned.
(a) Subject to Section 15-210, the net card value of a
stored-value card, other than a payroll card or a gift card, is
presumed abandoned on the latest of 5 years after:
(1) December 31 of the year in which the card is issued
or additional funds are deposited into it;
(2) the most recent indication of interest in the card
by the apparent owner; or
(3) a verification or review of the balance by or on
behalf of the apparent owner.
(b) The amount presumed abandoned in a stored-value card is
the net card value at the time it is presumed abandoned.
(c) However, if a holder has reported and remitted to the
administrator the net card value on a stored-value card
presumed abandoned under this Section and the stored-value card
does not have an expiration date, then the holder must honor
the card on presentation indefinitely and may then request
reimbursement from the administrator under Section 605.
Section 15-208. When security presumed abandoned.
(a) Subject to Section 15-210, a security is presumed
abandoned upon the earlier of the following:
(1) 3 years after the date a communication sent by the
holder by first-class United States mail to the apparent
owner is returned to the holder undelivered by the United
States Postal Service; however, if such returned
communication is re-sent within one month to the apparent
owner, the 3-year period does not begin to run until the
day the resent item is returned as undeliverable; or
(2) 5 years after the date of the apparent owner's last
indication of interest in the security.
(b) If the holder does not send communications to the
apparent owner of a security by first-class United States mail
on at least an annual basis, the holder shall attempt to
confirm the apparent owner's interest in the security by
sending the apparent owner an electronic-mail communication
not later than 3 years after the apparent owner's last
indication of interest in the security. However, the holder
promptly shall attempt to contact the apparent owner by
first-class United States mail if:
(1) the holder does not have information needed to send
the apparent owner an electronic-mail communication or the
holder believes that the apparent owner's electronic-mail
address in the holder's records is not valid;
(2) the holder receives notification that the
electronic-mail communication was not received; or
(3) the apparent owner does not respond to the
electronic-mail communication within 30 days after the
communication was sent.
(c) If first-class United States mail sent under subsection
(b) is returned to the holder undelivered by the United States
Postal Service, the security is presumed abandoned in
accordance with subsection (a)(2) above.
(d) If a holder in the ordinary course of its business
receives notice or an indication of the death of an apparent
owner, the holder shall attempt not later than 90 days after
receipt of the notice or indication to confirm whether the
apparent owner is deceased. Notwithstanding the standards set
forth in paragraphs (a), (b) and (c), if the holder either
receives confirmation of the death of the apparent owner in the
ordinary course of its business or confirms the death of the
apparent owner under this subsection (d), then, the property
shall be presumed abandoned 2 years after the date of death of
the owner.
Section 15-209. When related property presumed abandoned.
At and after the time property is presumed abandoned under this
Act, any other property right or interest accrued or accruing
from the property and not previously presumed abandoned is also
presumed abandoned.
Section 15-210. Indication of apparent owner interest in
property.
(a) The period after which property is presumed abandoned
is measured from the later of:
(1) the date the property is presumed abandoned under
this Article; or
(2) the latest indication of interest by the apparent
owner in the property.
(b) Under this Act, an indication of an apparent owner's
interest in property includes:
(1) a record communicated by the apparent owner to the
holder or agent of the holder concerning the property or
the account in which the property is held;
(2) an oral communication by the apparent owner to the
holder or agent of the holder concerning the property or
the account in which the property is held, if the holder or
its agent contemporaneously makes and preserves a record of
the fact of the apparent owner's communication;
(3) presentment of a check or other instrument of
payment of a dividend, interest payment, or other
distribution, or evidence of receipt of a distribution made
by electronic or similar means, with respect to an account,
underlying security, or interest in a business
association;
(4) activity directed by an apparent owner in the
account in which the property is held, including accessing
the account or information concerning the account, or a
direction by the apparent owner to increase, decrease, or
otherwise change the amount or type of property held in the
account;
(5) a deposit into or withdrawal from an account at a
financial organization, except for a recurring Automated
Clearing House (ACH) debit or credit previously authorized
by the apparent owner or an automatic reinvestment of
dividends or interest; and
(6) subject to subsection (e), payment of a premium on
an insurance policy.
(c) An action by an agent or other representative of an
apparent owner, other than the holder acting as the apparent
owner's agent, is presumed to be an action on behalf of the
apparent owner.
(d) A communication with an apparent owner by a person
other than the holder or the holder's representative is not an
indication of interest in the property by the apparent owner
unless a record of the communication evidences the apparent
owner's knowledge of a right to the property.
(e) If the insured dies or the insured or beneficiary of an
insurance policy otherwise becomes entitled to the proceeds
before depletion of the cash surrender value of the policy by
operation of an automatic-premium-loan provision or other
nonforfeiture provision contained in the policy, the operation
does not prevent the policy from maturing or terminating.
(f) If the apparent owner has another property with the
holder to which Section 201(6) applies, then activity directed
by an apparent owner in any other accounts, including loan
accounts, at a financial organization holding an inactive
account of the apparent owner shall be an indication of
interest in all such accounts if:
(A) the apparent owner engages in one or more of
the following activities:
(i) the apparent owner undertakes one or more
of the actions described in subsection (b) of this
Section regarding any account that appears on a
consolidated statement with the inactive account;
(ii) the apparent owner increases or decreases
the amount of funds in any other account the
apparent owner has with the financial
organization; or
(iii) the apparent owner engages in any other
relationship with the financial organization,
including payment of any amounts due on a loan; and
(B) the foregoing apply so long as the mailing
address for the apparent owner in the financial
organization's books and records is the same for both
the inactive account and the active account.
Section 15-211. Knowledge of death of insured or annuitant.
(a) In this Section, "death master file" means the United
States Social Security Administration Death Master File or
other database or service that is at least as comprehensive as
the United States Social Security Administration Death Master
File for determining that an individual reportedly has died.
(b) With respect to a life or endowment insurance policy or
annuity contract for which an amount is owed on proof of death,
but which has not matured by proof of death of the insured or
annuitant, the company has knowledge of the death of an insured
or annuitant when:
(1) the company receives a death certificate or court
order determining that the insured or annuitant has died;
(2) the company:
(A) receives notice of the death of the insured or
annuitant from the administrator or an unclaimed
property administrator of another state, a
beneficiary, a policy owner, a relative of the insured,
a representative under the Probate Act of 1975, or from
an executor or other legal representative of the
insured's or annuitant's estate; and
(B) validates the death of the insured or
annuitant;
(3) the company conducts a comparison for any purpose
between a death master file and the names of some or all of
the company's insureds or annuitants, finds a match that
provides notice that the insured or annuitant has died; or
(4) the administrator or the administrator's agent
conducts a comparison for the purpose of finding matches
during an examination conducted under Article 10 between a
death master file and the names of some or all of the
company's insureds or annuitants, finds a match that
provides notice that the insured or annuitant has died.
(c) The following rules apply under this Section:
(1) A death-master-file match under subsection (b)(3)
or (4) occurs if the criteria for an exact or partial match
are satisfied as provided by either:
(A) the Unclaimed Life Insurance Benefits Act or
other law of this State other than this Act; or
(B) a rule or policy adopted by the Director of the
Department of Insurance.
(2) The death-master-file match does not constitute
proof of death for the purpose of submission to an
insurance company of a claim by a beneficiary, annuitant,
or owner of the policy or contract for an amount due under
an insurance policy or annuity contract.
(3) The death-master-file match or validation of the
insured's or annuitant's death does not alter the
requirements for a beneficiary, annuitant, or owner of the
policy or contract to make a claim to receive proceeds
under the terms of the policy or contract.
(4) An insured or an annuitant is presumed dead if the
date of his or her death is indicated by the
death-master-file match under either subsection (b)(3) or
(b)(4), unless the insurer has competent and substantial
evidence that the person is living, including, but not
limited to, a contact made by the insurer with the person
or his or her legal representative.
(d) This Act does not affect the determination of the
extent to which an insurance company before the effective date
of this Act had knowledge of the death of an insured or
annuitant or was required to conduct a death-master-file
comparison to determine whether amounts owed by the company on
a life or endowment insurance policy or annuity contract were
presumed abandoned or unclaimed.
Section 15-212. Deposit account for proceeds of insurance
policy or annuity contract. If proceeds payable under a life or
endowment insurance policy or annuity contract are deposited
into an account with check or draft-writing privileges for the
beneficiary of the policy or contract and, under a
supplementary contract not involving annuity benefits other
than death benefits, the proceeds are retained by the insurance
company or the financial organization where the account is
held, the policy or contract includes the assets in the
account.
Section 15-213. United States savings bonds.
(a) As used in this Section, "United States savings bond"
means property, tangible or intangible, in the form of a
savings bond issued by the United States Treasury, whether in
paper, electronic, or paperless form, along with all proceeds
thereof in the possession of the administrator.
(b) Notwithstanding any provision of this Act to the
contrary, a United States savings bond subject to this Section
or held or owing in this State by any person is presumed
abandoned when such bond has remained unclaimed and unredeemed
for 5 years after its date of final extended maturity.
(c) United States savings bonds that are presumed abandoned
and unclaimed under subsection (b) shall escheat to the State
of Illinois and all property rights and legal title to and
ownership of the United States savings bonds, or proceeds from
the bonds, including all rights, powers, and privileges of
survivorship of any owner, co-owner, or beneficiary, shall vest
solely in the State according to the procedure set forth in
subsections (d) through (f).
(d) Within 180 days after a United States savings bond has
been presumed abandoned, in the absence of a claim having been
filed with the administrator for the savings bond, the
administrator shall commence a civil action in the Circuit
Court of Sangamon County for a determination that the United
States savings bonds has escheated to the State. The
administrator may postpone the bringing of the action until
sufficient United States savings bonds have accumulated in the
administrator's custody to justify the expense of the
proceedings.
(e) The administrator shall make service by publication in
the civil action in accordance with Sections 2-206 and 2-207 of
the Code of Civil Procedure, which shall include the filing
with the Circuit Court of Sangamon County of the affidavit
required in Section 2-206 of that Code by an employee of the
administrator with personal knowledge of the efforts made to
contact the owners of United States savings bonds presumed
abandoned under this Section. In addition to the diligent
inquiries made pursuant to Section 2-206 of the Code of Civil
Procedure, the administrator may also utilize additional
discretionary means to attempt to provide notice to persons who
may own a United States savings bond registered to a person
with a last known address in the State of Illinois subject to a
civil action pursuant to subsection (d).
(f) The owner of a United States savings bond registered to
a person with a last known address in the State of Illinois
subject to a civil action pursuant to subsection (d) may file a
claim for such United States savings bond with either the
administrator or by filing a claim in the civil action in the
Circuit Court of Sangamon County in which the savings bond
registered to that person is at issue prior to the entry of a
final judgment by the Circuit Court pursuant to this
subsection, and unless the Circuit Court determines that such
United States savings bond is not owned by the claimant, then
such United States savings bond shall no longer be presumed
abandoned. If no person files a claim or appears at the hearing
to substantiate a disputed claim or if the court determines
that a claimant is not entitled to the property claimed by the
claimant, then the court, if satisfied by evidence that the
administrator has substantially complied with the laws of this
State, shall enter a judgment that the United States savings
bonds have escheated to this State, and all property rights and
legal title to and ownership of such United States savings
bonds or proceeds from such bonds, including all rights,
powers, and privileges of survivorship of any owner, co-owner,
or beneficiary, shall vest in this State.
(g) The administrator shall redeem from the Bureau of the
Fiscal Service of the United States Treasury the United States
savings bonds escheated to the State and deposit the proceeds
from the redemption of United States savings bonds into the
Unclaimed Property Trust Fund.
(h) Any person making a claim for the United States savings
bonds escheated to the State under this subsection, or for the
proceeds from such bonds, may file a claim with the
administrator. Upon providing sufficient proof of the validity
of such person's claim, the administrator may, in his or her
sole discretion, pay such claim. If payment has been made to
any claimant, no action thereafter may be maintained by any
other claimant against the State or any officer thereof for or
on account of such funds.
ARTICLE 3. RULES FOR TAKING CUSTODY OF PROPERTY PRESUMED
ABANDONED
Section 15-301. Address of apparent owner to establish
priority. In this Article, the following rules apply:
(1) The last-known address of an apparent owner is any
description, code, or other indication of the location of
the apparent owner which identifies the state, even if the
description, code, or indication of location is not
sufficient to direct the delivery of first-class United
States mail to the apparent owner.
(2) If the United States postal zip code associated
with the apparent owner is for a post office located in
this State, this State is deemed to be the state of the
last-known address of the apparent owner unless other
records associated with the apparent owner specifically
identify the physical address of the apparent owner to be
in another state.
(3) If the address under paragraph (2) is in another
state, the other state is deemed to be the state of the
last-known address of the apparent owner.
(4) The address of the apparent owner of a life or
endowment insurance policy or annuity contract or its
proceeds is presumed to be the address of the insured or
annuitant if a person other than the insured or annuitant
is entitled to the amount owed under the policy or contract
and the address of the other person is not known by the
insurance company and cannot be determined under Section
15-302. The address of the apparent owner of other property
where ownership vests in a beneficiary upon the death of
the owner is presumed to be the address of the now-deceased
owner if the address of the beneficiary is not known by the
holder and cannot be determined under Section 15-302.
Section 15-302. Address of apparent owner in this State.
The administrator may take custody of property that is presumed
abandoned, whether located in this State, another state, or a
foreign country if:
(1) the last-known address of the apparent owner in the
records of the holder is in this State; or
(2) the records of the holder do not reflect the
identity or last-known address of the apparent owner, but
the administrator has determined that the last-known
address of the apparent owner is in this State.
Section 15-303. If records show multiple addresses of
apparent owner.
(a) Except as in subsection (b), if records of a holder
reflect multiple addresses for an apparent owner and this State
is the state of the most recently recorded address, this State
may take custody of property presumed abandoned, whether
located in this State or another state.
(b) If it appears from records of the holder that the most
recently recorded address of the apparent owner under
subsection (a) is a temporary address and this State is the
state of the next most recently recorded address that is not a
temporary address, this State may take custody of the property
presumed abandoned.
Section 15-304. Holder domiciled in this State.
(a) Except as in subsection (b) or Section 15-302 or
15-303, the administrator may take custody of property presumed
abandoned, whether located in this State, another state, or a
foreign country, if the holder is domiciled in this State or is
this State or a governmental subdivision, agency, or
instrumentality of this State, and
(1) another state or foreign country is not entitled to
the property because there is no last-known address of the
apparent owner or other person entitled to the property in
the records of the holder; or
(2) the state or foreign country of the last-known
address of the apparent owner or other person entitled to
the property does not provide for custodial taking of the
property.
(b) Property is not subject to custody of the administrator
under subsection (a) if the property is specifically exempt
from custodial taking under the law of this State or the state
or foreign country of the last-known address of the apparent
owner.
(c) If a holder's state of domicile has changed since the
time property was presumed abandoned, the holder's state of
domicile under this Section is deemed to be the state where the
holder was domiciled at the time the property was presumed
abandoned.
Section 15-305. Custody if transaction took place in this
State. Except as in Section 15-302, 15-303, or 15-304, the
administrator may take custody of property presumed abandoned
whether located in this State or another state if:
(1) the transaction out of which the property arose
took place in this State;
(2) the holder is domiciled in a state that does not
provide for the custodial taking of the property, except
that if the property is specifically exempt from custodial
taking under the law of the state of the holder's domicile,
the property is not subject to the custody of the
administrator; and
(3) the last-known address of the apparent owner or
other person entitled to the property is unknown or in a
state that does not provide for the custodial taking of the
property, except that if the property is specifically
exempt from custodial taking under the law of the state of
the last-known address, the property is not subject to the
custody of the administrator.
Section 15-306. Traveler's check, money order, or similar
instrument. The administrator may take custody of sums payable
on a traveler's check, money order, or similar instrument
presumed abandoned to the extent permissible under 12 U.S.C.
Sections 2501 through 2503, as amended.
Section 15-307. Burden of proof to establish
administrator's right to custody. Subject to Article 4 and
Section 15-1005, if the administrator asserts a right to
custody of unclaimed property and there is a dispute concerning
such property, the administrator has the initial burden to
prove:
(1) the amount of the property;
(2) the property is presumed abandoned; and
(3) the property is subject to the custody of the
administrator.
ARTICLE 4. REPORT BY HOLDER
Section 15-401. Report required by holder.
(a) A holder of property presumed abandoned and subject to
the custody of the administrator shall report in a record to
the administrator concerning the property. A holder shall
report via the internet in a format approved by the
administrator, unless the administrator gives a holder
specific permission to file a paper report.
(b) A holder may contract with a third party to make the
report required under subsection (a).
(c) Whether or not a holder contracts with a third party
under subsection (b), the holder is responsible:
(1) to the administrator for the complete, accurate,
and timely reporting of property presumed abandoned; and
(2) for paying or delivering to the administrator
property described in the report.
Section 15-402. Content of report.
(a) The report required under Section 15-401 must:
(1) be signed by or on behalf of the holder and
verified as to its completeness and accuracy;
(2) if filed electronically, be in a secure format
approved by the administrator which protects confidential
information of the apparent owner;
(3) describe the property;
(4) except for a traveler's check, money order, or
similar instrument, contain the name, if known, last-known
address, if known, and Social Security number or taxpayer
identification number, if known or readily ascertainable,
of the apparent owner of property with a value of $5 or
more;
(5) for an amount held or owing under a life or
endowment insurance policy, annuity contract, or other
property where ownership vests in a beneficiary upon the
death of the owner, contain the name and last-known address
of the insured, annuitant, or other apparent owner of the
policy or contract and of the beneficiary;
(6) for property held in or removed from a safe-deposit
box, indicate the location of the property, where it may be
inspected by the administrator, and any amounts owed to the
holder under Section 15-606;
(7) contain the commencement date for determining
abandonment under Article 2;
(8) state that the holder has complied with the notice
requirements of Section 15-501;
(9) identify property that is a non-freely
transferable security and explain why it is a non-freely
transferable security; and
(10) contain other information the administrator
prescribes by rules.
(b) A report under Section 15-401 may include in the
aggregate items valued under $5 each. If the report includes
items in the aggregate valued under $5 each, the administrator
may not require the holder to provide the name and address of
an apparent owner of an item unless the information is
necessary to verify or process a claim in progress by the
apparent owner.
(c) A report under Section 15-401 may include personal
information as defined in Section 15-1401(a) about the apparent
owner or the apparent owner's property.
(d) If a holder has changed its name while holding property
presumed abandoned or is a successor to another person that
previously held the property for the apparent owner, the holder
must include in the report under Section 15-401 its former name
or the name of the previous holder, if any, and the known name
and address of each previous holder of the property.
Section 15-403. When report to be filed.
(a) Except as otherwise provided in subsection (b) and
subject to subsection (c), the report under Section 15-401 must
be filed before November 1 of each year and cover the 12 months
preceding July 1 of that year.
(b) Subject to subsection (c), the report under Section
15-401 to be filed by business associations, utilities, and
life insurance companies must be filed before May 1 of each
year for the immediately preceding calendar year.
(c) Before the date for filing the report under Section
15-401, the holder of property presumed abandoned may request
the administrator to extend the time for filing. The
administrator may grant an extension. If the extension is
granted, the holder may pay or make a partial payment of the
amount the holder estimates ultimately will be due. The payment
or partial payment terminates accrual of interest on the amount
paid.
Section 15-404. Retention of records by holder. A holder
required to file a report under Section 15-401 shall retain
records for 10 years after the later of the date the report was
filed or the last date a timely report was due to be filed,
unless a shorter period is provided by rule of the
administrator. The holder may satisfy the requirement to retain
records under this Section through an agent. The records must
contain:
(1) the information required to be included in the
report;
(2) the date, place, and nature of the circumstances
that gave rise to the property right;
(3) the amount or value of the property;
(4) the last address of the apparent owner, if known to
the holder;
(5) sufficient records of items which were not reported
as unclaimed, to allow examination to determine whether the
holder has complied with the Act; and
(6) if the holder sells, issues, or provides to others
for sale or issue in this State traveler's checks, money
orders, or similar instruments, other than third-party
bank checks, on which the holder is directly liable, a
record of the instruments while they remain outstanding
indicating the state and date of issue.
Section 15-405. Property reportable and payable or
deliverable absent owner demand. Property is reportable and
payable or deliverable under this Act even if the owner fails
to make demand or present an instrument or document otherwise
required to obtain payment.
ARTICLE 5. NOTICE TO APPARENT OWNER OF PROPERTY PRESUMED
ABANDONED
Section 15-501. Notice to apparent owner by holder.
(a) Subject to subsections (b) and (c), the holder of
property presumed abandoned shall send to the apparent owner
notice by first-class United States mail that complies with
Section 15-502 in a format acceptable to the administrator not
more than one year nor less than 60 days before filing the
report under Section 15-401 if:
(1) the holder has in its records an address for the
apparent owner which the holder's records do not disclose
to be invalid and is sufficient to direct the delivery of
first-class United States mail to the apparent owner; and
(2) the value of the property is $50 or more.
(b) If an apparent owner has consented to receive
electronic-mail delivery from the holder, the holder shall send
the notice described in subsection (a) both by first-class
United States mail to the apparent owner's last-known mailing
address and by electronic mail, unless the holder believes that
the apparent owner's electronic-mail address is invalid.
(c) The holder of securities presumed abandoned under
Sections 15-202, 15-203, or 15-208 shall send to the apparent
owner notice by certified United States mail that complies with
Section 15-502 in a format acceptable to the administrator not
less than 60 days before filing the report under Section 15-401
if:
(1) the holder has in its records an address for the
apparent owner which the holder's records do not disclose
to be invalid and is sufficient to direct the delivery of
United States mail to the apparent owner; and
(2) the value of the property is $1,000 or more.
The administrator may issue rules allowing a holder to
deduct reasonable costs incurred in sending a notice by
certified United States mail under this subsection.
(d) In addition to other indications of an apparent owner's
interest in property pursuant to Section 15-210, a signed
return receipt in response to a notice sent pursuant to this
Section by certified United States mail shall constitute a
record communicated by the apparent owner to the holder
concerning the property or the account in which the property is
held.
Section 15-502. Contents of notice by holder.
(a) Notice under Section 15-501 must contain a heading that
reads substantially as follows: "Notice. The State of Illinois
requires us to notify you that your property may be transferred
to the custody of the administrator if you do not contact us
before (insert date that is 30 days after the date of this
notice)."
(b) The notice under Section 15-501 must:
(1) identify the nature and, except for property that
does not have a fixed value, the value of the property that
is the subject of the notice;
(2) state that the property will be turned over to the
State Treasurer;
(3) state that after the property is turned over to the
State Treasurer an apparent owner that seeks return of the
property may file a claim with the administrator;
(4) state that property that is not legal tender of the
United States may be sold by the State Treasurer;
(5) provide instructions that the apparent owner must
follow to prevent the holder from reporting and paying or
delivering the property to the State Treasurer; and
(6) provide the name, address, and e-mail address or
telephone number to contact the holder.
(c) The holder may supplement the required information by
listing a website where apparent owners may obtain more
information about how to prevent the holder from reporting and
paying or delivering the property to the State Treasurer.
Section 15-503. Notice by administrator.
(a) The administrator shall give notice to an apparent
owner that property presumed abandoned and appears to be owned
by the apparent owner is held by the administrator under this
Act.
(b) In providing notice under subsection (a), the
administrator shall:
(1) except as otherwise provided in paragraph (2), send
written notice by first-class United States mail to each
apparent owner of property valued at $100 or more held by
the administrator, unless the administrator determines
that a mailing by first-class United States mail would not
be received by the apparent owner, and, in the case of a
security held in an account for which the apparent owner
had consented to receiving electronic mail from the holder,
send notice by electronic mail if the electronic-mail
address of the apparent owner is known to the administrator
instead of by first-class United States mail; or
(2) send the notice to the apparent owner's
electronic-mail address if the administrator does not have
a valid United States mail address for an apparent owner,
but has an electronic-mail address that the administrator
does not know to be invalid.
(c) In addition to the notice under subsection (b), the
administrator shall:
(1) publish every 6 months in at least one English
language newspaper of general circulation in each county in
this State notice of property held by the administrator
which must include:
(A) the total value of property received by the
administrator during the preceding 6-month period,
taken from the reports under Section 15-401;
(B) the total value of claims paid by the
administrator during the preceding 6-month period;
(C) the Internet web address of the unclaimed
property website maintained by the administrator;
(D) a telephone number and electronic-mail address
to contact the administrator to inquire about or claim
property; and
(E) a statement that a person may access the
Internet by a computer to search for unclaimed property
and a computer may be available as a service to the
public at a local public library.
(2) The administrator shall maintain a website
accessible by the public and electronically searchable
which contains the names reported to the administrator of
apparent owners for whom property is being held by the
administrator. The administrator need not list property on
such website when: no owner name was reported, a claim has
been initiated or is pending for the property, the
administrator has made direct contact with the apparent
owner of the property, and in other instances where the
administrator reasonably believes exclusion of the
property is in the best interests of both the State and the
owner of the property.
(d) The website or database maintained under subsection
(c)(2) must include instructions for filing with the
administrator a claim to property and a printable claim form
with instructions for its use.
(e) Tax return identification of apparent owners of
abandoned property.
(1) At least annually the administrator shall notify
the Department of Revenue of the names of persons appearing
to be owners of abandoned property under this Section. The
administrator shall also provide to the Department of
Revenue the social security numbers of the persons, if
available.
(2) The Department of Revenue shall notify the
administrator if any person under subsection (e)(1) has
filed an Illinois income tax return and shall provide the
administrator with the last known address of the person as
it appears in Department of Revenue records, except as
prohibited by federal law. The Department of Revenue may
also provide additional addresses for the same taxpayer
from the records of the Department, except as prohibited by
federal law.
(3) In order to facilitate the return of property under
this subsection, the administrator and the Department of
Revenue may enter into an interagency agreement concerning
protection of confidential information, data match rules,
and other issues.
(4) The administrator may deliver, as provided under
Section 15-904 of this Act, property or pay the amount
owing to a person matched under this Section without the
person filing a claim under Section 15-903 of this Act if
the following conditions are met:
(A) the value of the property that is owed the
person is $2,000 or less;
(B) the property is not either tangible property or
securities;
(C) the last known address for the person according
to the Department of Revenue records is less than 12
months old; and
(D) the administrator has evidence sufficient to
establish that the person who appears in Department of
Revenue records is the owner of the property and the
owner currently resides at the last known address from
the Department of Revenue.
(5) If the value of the property that is owed the
person is greater than $2,000, or is tangible property or
securities the administrator shall provide notice to the
person, informing the person that he or she is the owner of
abandoned property held by the State and may file a claim
with the administrator for return of the property.
(f) The administrator may use additional databases to
verify the identity of the person and that the person currently
resides at the last known address. The administrator may
utilize publicly and commercially available databases to find
and update or add information for apparent owners of property
held by the administrator.
(g) In addition to giving notice under subsection (b),
publishing the information under subsection (c)(1) and
maintaining the website or database under subsection (c)(2),
the administrator may use other printed publication,
telecommunication, the Internet, or other media to inform the
public of the existence of unclaimed property held by the
administrator.
Section 15-504. Cooperation among State officers and
agencies to locate apparent owner. Unless prohibited by law of
this State other than this Act, on request of the
administrator, each officer, agency, board, commission,
division, and department of this State, any body politic and
corporate created by this State for a public purpose, and each
political subdivision of this State shall make its books and
records available to the administrator and cooperate with the
administrator to determine the current address of an apparent
owner of property held by the administrator under this Act or
to otherwise assist the administrator in the administration of
this Act. The administrator may also enter into data sharing
agreements to enable such other governmental agencies to
provide an additional notice to apparent owners of property
held by the administrator.
ARTICLE 6. TAKING CUSTODY OF PROPERTY BY ADMINISTRATOR
Section 15-601. Definition of good faith. In this Article,
payment or delivery of property is made in good faith if a
holder:
(1) had a reasonable basis for believing, based on the
facts then known, that the property was required or
permitted to be paid or delivered to the administrator
under this Act; or
(2) made payment or delivery:
(A) in response to a demand by the administrator or
administrator's agent; or
(B) under a guidance or ruling issued by the
administrator which the holder reasonably believed
required or permitted the property to be paid or
delivered.
Section 15-602. Dormancy charge.
(a) A holder may deduct a dormancy charge from property
required to be paid or delivered to the administrator if:
(1) a valid contract between the holder and the
apparent owner authorizes imposition of the charge for the
apparent owner's failure to claim the property within a
specified time; and
(2) the holder regularly imposes the charge and
regularly does not reverse or otherwise cancel the charge.
(b) The amount of the deduction under subsection (a) is
limited to an amount that is not unconscionable considering all
relevant factors, including the marginal transactional costs
incurred by the holder in maintaining the apparent owner's
property and any services received by the apparent owner.
(c) A holder may not deduct an escheat fee or other charges
imposed solely by virtue of property being reported as presumed
abandoned.
Section 15-603. Payment or delivery of property to
administrator.
(a) Except as otherwise provided in this Section, on filing
a report under Section 15-401, the holder shall pay or deliver
to the administrator the property described in the report.
(b) If property in a report under Section 15-401 is an
automatically renewable deposit and a penalty or forfeiture in
the payment of interest would result from paying the deposit to
the administrator at the time of the report, the date for
payment of the property to the administrator is extended until
a penalty or forfeiture no longer would result from payment, if
the holder informs the administrator of the extended date.
(c) Tangible property in a safe-deposit box may not be
delivered to the administrator until a mutually agreed upon
date that is no sooner than 60 days after filing the report
under Section 15-401.
(d) If property reported to the administrator under Section
15-401 is a security, the administrator may:
(1) make an endorsement, instruction, or entitlement
order on behalf of the apparent owner to invoke the duty of
the issuer, its transfer agent, or the securities
intermediary to transfer the security; or
(2) dispose of the security under Section 15-702.
(e) If the holder of property reported to the administrator
under Section 15-401 is the issuer of a certificated security,
the administrator may obtain a replacement certificate in
physical or book-entry form under Section 8-405 of the Uniform
Commercial Code. An indemnity bond is not required.
(f) The administrator shall establish procedures for the
registration, issuance, method of delivery, transfer, and
maintenance of securities delivered to the administrator by a
holder.
(g) An issuer, holder, and transfer agent or other person
acting in good faith under this Section under instructions of
and on behalf of the issuer or holder is not liable to the
apparent owner for a claim arising with respect to property
after the property has been delivered to the administrator.
(h) A holder is not required to deliver to the
administrator a security identified by the holder as a
non-freely transferable security in a report filed under
Section 15-401. If the administrator or holder determines that
a security is no longer a non-freely transferable security, the
holder shall report and deliver the security on the next
regular date prescribed for delivery of securities under this
Act. The holder shall make a determination annually whether a
security identified in a report filed under Section 15-401 as a
non-freely transferable security is no longer a non-freely
transferable security.
Section 15-604. Effect of payment or delivery of property
to administrator.
(a) On payment or delivery of property to the administrator
under this Act, the administrator as agent for the State
assumes custody and responsibility for safekeeping the
property. A holder that pays or delivers property to the
administrator in good faith and substantially complies with
Sections 15-501 and 15-502 is relieved of all liability which
thereafter may arise or be made in respect to the property to
the extent of the value of the property so paid or delivered.
(b) If legal proceedings are instituted by any other state
or states in any state or federal court with respect to
unclaimed funds or abandoned property previously paid or
delivered to the administrator, the holder shall give written
notification to the administrator and the Attorney General of
this State of such proceedings within 10 days after service of
process, or in the alternative at least 10 days before the
return date or date on which an answer or similar pleading is
due (or any extension thereof secured by the holder). The
Attorney General may take such action as he or she deems
necessary or expedient to protect the interests of this State.
The Attorney General by written notice prior to the return date
or date on which an answer or similar pleading is due (or any
extension thereof secured by the holder), but in any event in
reasonably sufficient time for the holder to comply with the
directions received, shall either direct the holder actively to
defend in such proceedings or that no defense need be entered
in such proceedings. If a direction is received from the
Attorney General that the holder need not make a defense, such
shall not preclude the holder from entering a defense in its
own name if it should so choose. However, any defense made by
the holder on its own initiative shall not entitle the holder
to reimbursement for legal fees, costs and other expenses as is
hereinafter provided in respect to defenses made pursuant to
the directions of the Attorney General. If, after the holder
has actively defended in such proceedings pursuant to a
direction of the Attorney General, or has been notified in
writing by the Attorney General that no defense need be made
with respect to such funds, a judgment is entered against the
holder for any amount paid to the administrator under this Act,
the administrator shall, upon being furnished with proof of
payment in satisfaction of such judgment, reimburse the holder
the amount so paid. The administrator shall also reimburse the
holder for any legal fees, costs and other directly related
expenses incurred in legal proceedings undertaken pursuant to
the direction of the Attorney General.
Section 15-605. Recovery of property by holder from
administrator.
(a) A holder that under this Act pays money to the
administrator may file a claim for reimbursement from the
administrator of the amount paid if the holder:
(1) paid the money in error; or
(2) after paying the money to the administrator, paid
money to a person the holder reasonably believed entitled
to the money.
(b) If a claim for reimbursement under subsection (a) is
made for a payment made on a negotiable instrument, including a
traveler's check, money order, or similar instrument, the
holder must submit proof that the instrument was presented and
payment was made to a person the holder reasonably believed
entitled to payment. The holder may claim reimbursement even if
the payment was made to a person whose claim was made after
expiration of a period of limitation on the owner's right to
receive or recover property, whether specified by contract,
statute, or court order.
(c) If a holder is reimbursed by the administrator under
subsection (a)(2), the holder may also recover from the
administrator income or gain under Section 15-607 that would
have been paid to the owner if the money had been claimed from
the administrator by the owner to the extent the income or gain
was paid by the holder to the owner.
(d) A holder that under this Act delivers property other
than money to the administrator may file a claim for return of
the property from the administrator if:
(1) the holder delivered the property in error; or
(2) the apparent owner has claimed the property from
the holder.
(e) If a claim for return of property under subsection (d)
is made, the holder shall include with the claim evidence
sufficient to establish that the apparent owner has claimed the
property from the holder or that the property was delivered by
the holder to the administrator in error.
(f) The administrator may determine that an affidavit
submitted by a holder is evidence sufficient to establish that
the holder is entitled to reimbursement or to recover property
under this Section.
(g) A holder is not required to pay a fee or other charge
for reimbursement or return of property under this Section.
(h) Unless extended for reasonable cause, not later than 90
days after a holder's claim is complete the administrator shall
allow or deny the claim and give the holder notice in a record
of the decision. If a holder fails to provide all the
information and documentation requested by the administrator
as necessary to establish legal ownership of the property and
the claim is inactive for at least 90 days, then the
administrator may close the claim without issuing a final
decision. However, if the claimant makes a request in writing
for a final decision prior to the administrator's closing of
the claim, the administrator shall issue a final decision. A
claim will be considered complete when a holder has provided
all the information and documentation requested by the
administrator as necessary to establish legal ownership and
such information or documentation is entered into the
administrator's unclaimed property system.
(i) The claimant may initiate a proceeding under the
Illinois Administrative Procedure Act for review of the
administrator's decision or the deemed denial under subsection
(h) not later than:
(1) 30 days following receipt of the notice of the
administrator's decision; or
(2) 120 days following the filing of a claim under
subsection (a) or (d) in the case of a deemed denial under
subsection (h).
Section 15-606. Property removed from safe-deposit box.
Property removed from a safe-deposit box and delivered under
this Act to the administrator under this Act is subject to the
holder's right to reimbursement for the cost of opening the box
and a lien or contract providing reimbursement to the holder
for unpaid rent charges for the box. Upon application by the
holder, after the sale of the property, and after deducting the
expense incurred by the administrator in selling the property,
the administrator shall reimburse the holder from the proceeds
remaining. The administrator shall promulgate administrative
rules concerning the reimbursement process under this Section.
Section 15-607. Crediting income or gain to owner's
account. If property other than money is delivered to the
administrator, the owner is entitled to receive from the
administrator income or gain realized or accrued on the
property before the property is sold. Interest on money is not
payable to an owner for periods where the property is in the
possession of the administrator.
Section 15-608. Administrator's options as to custody.
(a) The administrator may decline to take custody of
property reported under Section 15-401 if the administrator
determines that:
(1) the property has a value less than the estimated
expenses of notice and sale of the property; or
(2) taking custody of the property would be unlawful.
(b) A holder may pay or deliver property to the
administrator before the property is presumed abandoned under
this Act if the holder:
(1) provides the apparent owner of the property any
notice required by Section 15-501 and provides the
administrator evidence of the holder's compliance with
this paragraph;
(2) includes with the payment or delivery a report
regarding the property conforming to Section 15-402; and
(3) first obtains the administrator's consent in a
record to accept payment or delivery.
(c) A holder's request for the administrator's consent
under subsection (b)(3) must be in a record. If the
administrator fails to respond to the request not later than 30
days after receipt of the request, the administrator is deemed
to consent to the payment or delivery of the property and the
payment or delivery is considered to have been made in good
faith.
(d) On payment or delivery of property under subsection
(b), the property is presumed abandoned.
Section 15-609. Disposition of property having no
substantial value; immunity from liability.
(a) If the administrator takes custody of property
delivered under this Act and later determines that the property
has no substantial commercial value or that the cost of
disposing of the property will exceed the value of the
property, the administrator may return the property to the
holder or destroy or otherwise dispose of the property.
(b) An action or proceeding may not be commenced against
the State, an agency of the State, the administrator, another
officer, employee, or agent of the State, or a holder for or
because of an act of the administrator under this Section,
except for intentional misconduct or malfeasance.
Section 15-610. Periods of limitation and repose.
(a) Expiration, before, on, or after the effective date of
this Act, of a period of limitation on an owner's right to
receive or recover property, whether specified by contract,
statute, or court order, does not prevent the property from
being presumed abandoned or affect the duty of a holder under
this Act to file a report or pay or deliver property to the
administrator.
(b) An action or proceeding may not be maintained by the
administrator to enforce this Act in regard to the reporting,
delivery, or payment of property more than 10 years after the
holder specifically identified the property in a report filed
with the administrator or gave express notice to the
administrator of a dispute regarding the property. In the
absence of such a report or other express notice, the period of
limitation is tolled. The period of limitation is also tolled
by the filing of a report that is fraudulent.
ARTICLE 7. SALE OF PROPERTY BY ADMINISTRATOR
Section 15-701. Public sale of property.
(a) Subject to Section 15-702, not earlier than 3 years
after receipt of property presumed abandoned, the
administrator may sell the property.
(b) Before selling property under subsection (a), the
administrator shall give notice to the public of:
(1) the date of the sale; and
(2) a reasonable description of the property.
(c) A sale under subsection (a) must be to the highest
bidder:
(1) at public sale at a location in this State which
the administrator determines to be the most favorable
market for the property;
(2) on the Internet; or
(3) on another forum the administrator determines is
likely to yield the highest net proceeds of sale.
(d) The administrator may decline the highest bid at a sale
under this Section and reoffer the property for sale if the
administrator determines the highest bid is insufficient.
(e) If a sale held under this Section is to be conducted
other than on the Internet, the administrator must cause to be
published at least one notice of the sale, at least 2 weeks but
not more than 5 weeks before the sale, in a newspaper of
general circulation in the county in which the property is to
be sold. For purposes of this subsection, the reasonable
description of property to be sold required by subsection (b)
above may be satisfied by posting such information on the
administrator's website so long as the newspaper notice
includes the website address where such information is posted.
(f) Property eligible for sale will not be sold when a
claim has been filed with the administrator by an apparent
owner, heir, or agent. However, upon approval of a claim, the
owner, heir or, agent may request the administrator to dispose
of the property by sale and remit the net proceeds to the
owner, heir, or agent. Upon disapproval of the claim, the
administrator may dispose of the property by sale.
Section 15-702. Disposal of securities.
(a) The administrator may not sell or otherwise liquidate a
security until 3 years after the administrator receives the
security and gives the apparent owner notice under Section
15-503 that the administrator holds the security unless the
administrator determines it would be in the best interests of
the owner for the sale to occur prior to the expiration of the
3-year period after the administrator receives the security and
gives the apparent owner notice under Section 15-503. The
administrator shall by administrative rule provide examples of
situations where it would be in the best interests of the owner
for the sale to occur prior to the expiration of the 3-year
period.
(b) The administrator may not sell a security listed on an
established stock exchange for less than the price prevailing
on the exchange at the time of sale. The administrator may sell
a security not listed on an established exchange by any
commercially reasonable method.
Section 15-703. Recovery of securities or value by owner.
(a) If the administrator sells a security before the
expiration of 3 years after delivery of the security to the
administrator, an apparent owner that files a valid claim under
this Act of ownership of the security before the 3-year period
expires is entitled, at the option of the owner, to receive:
(1) replacement of the security;
(2) the market value of the security at the time the
claim is filed, plus dividends, interest, and other
increments on the security up to the time the claim is
paid; or
(3) the net proceeds of the sale of the security, plus
dividends, interest, and other increments on the security
up to the time the security was sold.
(b) Replacement of the security or calculation of market
value under subsection (a) must take into account a stock
split, reverse stock split, stock dividend, or similar
corporate action.
(c) A person that makes a valid claim under this Act of
ownership of a security after expiration of 3 years after
delivery of the security to the administrator is entitled to
receive:
(1) the security the holder delivered to the
administrator, if it is in the custody of the
administrator, plus dividends, interest, and other
increments on the security up to the time the administrator
delivers the security to the person; or
(2) the net proceeds of the sale of the security, plus
dividends, interest, and other increments on the security
up to the time the security was sold.
(d) Securities eligible for sale will not be sold when a
claim has been filed with the administrator by an apparent
owner, heir, or agent. However, upon approval of a claim, the
owner, heir or, agent may request the administrator to dispose
of the securities by sale and remit the net proceeds to the
owner, heir, or agent. Upon disapproval of the claim, the
administrator may dispose of the securities by sale.
Section 15-704. Purchaser owns property after sale. A
purchaser of property at a sale conducted by the administrator
under this Act takes the property free of all claims of the
owner, a previous holder, or a person claiming through the
owner or holder. The administrator shall execute documents
necessary to complete the transfer of ownership to the
purchaser.
Section 15-705. Exceptions to the sale of tangible
property. The administrator shall dispose of tangible property
identified by this Section in accordance with this Section.
(a) Military medals or decorations. The administrator may
not sell a medal or decoration awarded for military service in
the armed forces of the United States. Instead, the
administrator, with the consent of the respective organization
under paragraph (1), agency under paragraph (2), or entity
under paragraph (3), may deliver a medal or decoration to be
held in custody for the owner, to:
(1) a military veterans organization qualified under
Section 501(c)(19) of the Internal Revenue Code;
(2) the agency that awarded the medal or decoration; or
(3) a governmental entity.
After delivery, the administrator is not responsible for
the safekeeping of the medal or decoration.
(b) Property with historical value. Property that the
administrator reasonably believes may have historical value
may be, at his or her discretion, loaned to an accredited
museum in the United States where it will be kept until such
time as the administrator orders it to be returned to his or
her custody.
(c) Human remains. If human remains are delivered to the
administrator under this Act, the administrator shall deliver
those human remains to the coroner of the county in which the
human remains were abandoned for disposition under Section
3-3034 of the Counties Code. The only human remains that may be
delivered to the administrator under this Act and that the
administrator may receive are those that are reported and
delivered as contents of a safe deposit box.
(d) Evidence in a criminal investigation. Property that may
have been used in the commission of a crime or that may assist
in the investigation of a crime, as determined after consulting
with the Department of State Police, shall be delivered to the
Department of State Police or other appropriate law enforcement
authority to allow law enforcement to determine whether a
criminal investigation should take place. Any such property
delivered to a law enforcement authority shall be held in
accordance with existing statutes and rules related to the
gathering, retention, and release of evidence.
(e) Firearms.
(1) The administrator, in cooperation with the
Department of State Police, shall develop a procedure to
determine whether a firearm delivered to the administrator
under this Act has been stolen or used in the commission of
a crime. The Department of State Police shall determine the
appropriate disposition of a firearm that has been stolen
or used in the commission of a crime. The administrator
shall attempt to return a firearm that has not been stolen
or used in the commission of a crime to the rightful owner
if the Department of State Police determines that the owner
may lawfully possess the firearm.
(2) If the administrator is unable to return a firearm
to its owner, the administrator shall transfer custody of
the firearm to the Department of State Police. Legal title
to a firearm transferred to the Department of State Police
under this subsection (e) is vested in the Department of
State Police by operation of law if:
(i) the administrator cannot locate the owner of
the firearm;
(ii) the owner of the firearm may not lawfully
possess the firearm;
(iii) the apparent owner does not respond to notice
published under Section 15-503 of this Act; or
(iv) the apparent owner responds to notice
published under Section 15-502 and states that he or
she no longer claims an interest in the firearm.
(3) With respect to a firearm whose title is
transferred to the Department of State Police under this
subsection (e), the Department of State Police may:
(i) retain the firearm for use by the crime
laboratory system, for training purposes, or for
any other application as deemed appropriate by the
Department;
(ii) transfer the firearm to the Illinois
State Museum if the firearm has historical value;
or
(iii) destroy the firearm if it is not retained
pursuant to subparagraph (i) or transferred
pursuant to subparagraph (ii).
As used in this subsection, "firearm" has the meaning
provided in the Firearm Owners Identification Card Act.
ARTICLE 8. ADMINISTRATION OF PROPERTY
Section 15-801. Deposit of funds by administrator.
(a) Except as otherwise provided in this Section, the
administrator shall deposit in the Unclaimed Property Trust
Fund all funds received under this Act, including proceeds from
the sale of property under Article 7. The administrator may
deposit any amount in the Unclaimed Property Trust Fund into
the State Pensions Fund during the fiscal year at his or her
discretion; however, he or she shall, on April 15 and October
15 of each year, deposit any amount in the Unclaimed Property
Trust Fund exceeding $2,500,000 into the State Pensions Fund.
If on either April 15 or October 15, the administrator
determines that a balance of $2,500,000 is insufficient for the
prompt payment of unclaimed property claims authorized under
this Act, the administrator may retain more than $2,500,000 in
the Unclaimed Property Trust Fund in order to ensure the prompt
payment of claims. Beginning in State fiscal year 2018, all
amounts that are deposited into the State Pensions Fund from
the Unclaimed Property Trust Fund shall be apportioned to the
designated retirement systems as provided in subsection (c-6)
of Section 8.12 of the State Finance Act to reduce their
actuarial reserve deficiencies.
(b) The administrator shall make prompt payment of claims
he or she duly allows as provided for in this Act from the
Unclaimed Property Trust Fund. This shall constitute an
irrevocable and continuing appropriation of all amounts in the
Unclaimed Property Trust Fund necessary to make prompt payment
of claims duly allowed by the administrator pursuant to this
Act.
Section 15-802. Administrator to retain records of
property. The administrator shall:
(1) record and retain the name and last-known address
of each person shown on a report filed under Section 15-401
to be the apparent owner of property delivered to the
administrator;
(2) record and retain the name and last-known address
of each insured or annuitant and beneficiary shown on the
report;
(3) for each policy of insurance or annuity contract
listed in the report of an insurance company, record and
retain the policy or account number, the name of the
company, and the amount due or paid shown on the report;
(4) for each apparent owner listed in the report,
record and retain the name of the holder that filed the
report and the amount due or paid; and
(5) maintain records sufficient to indicate the filing
of reports required under Section 15-401 and the payment or
delivery of property to the administrator under Section
15-603.
Records created or maintained pursuant to this Section are
subject to the requirements of the Illinois State Records Act.
Section 15-803. Expenses and service charges of
administrator. Before making a deposit of funds received under
this Act to the Unclaimed Property Trust Fund, the
administrator may deduct expenses incurred in examining
records of or collecting property from a putative holder or
holder as provided in the State Officers and Employees Money
Disposition Act.
Section 15-804. Administrator holds property as custodian
for owner. Upon the payment or delivery of abandoned property
to the administrator, the State shall assume custody and shall
be responsible for the safekeeping thereof.
ARTICLE 9. CLAIM TO RECOVER PROPERTY FROM ADMINISTRATOR
Section 15-901. Claim of another state to recover property.
(a) If the administrator knows that property held by the
administrator under this Act is subject to a superior claim of
another state, the administrator shall:
(1) report and pay or deliver the property to the other
state; or
(2) return the property to the holder so that the
holder may pay or deliver the property to the other state.
(b) The administrator is not required to enter into an
agreement to transfer property to the other state under
subsection (a).
Section 15-902. Property subject to recovery by another
state.
(a) Property held under this Act by the administrator is
subject to the right of another state to take custody of the
property if:
(1) the property was paid or delivered to the
administrator because the records of the holder did not
reflect a last-known address in the other state of the
apparent owner and:
(A) the other state establishes that the
last-known address of the apparent owner or other
person entitled to the property was in the other state;
or
(B) under the law of the other state, the property
has become subject to a claim by the other state of
abandonment;
(2) the records of the holder did not accurately
identify the owner of the property, the last-known address
of the owner was in another state, and, under the law of
the other state, the property has become subject to a claim
by the other state of abandonment;
(3) the property was subject to the custody of the
administrator of this State under Section 15-305 and, under
the law of the state of domicile of the holder, the
property has become subject to a claim by the state of
domicile of the holder of abandonment; or
(4) the property:
(A) is a sum payable on a traveler's check, money
order, or similar instrument that was purchased in the
other state and delivered to the administrator under
Section 15-306; and
(B) under the law of the other state, has become
subject to a claim by the other state of abandonment.
(b) A claim by another state to recover property under this
Section must be presented in a form prescribed by the
administrator, unless the administrator waives presentation of
the form.
(c) The administrator shall decide a claim under this
Section not later than 90 days after it is presented. If the
administrator determines that the other state is entitled under
subsection (a) to custody of the property, the administrator
shall allow the claim and pay or deliver the property to the
other state.
(d) The administrator may require another state, before
recovering property under this Section, to agree to indemnify
this State and its agents, officers and employees against any
liability on a claim to the property.
Section 15-903. Claim for property by person claiming to be
owner.
(a) A person claiming to be the owner of property held
under this Act by the administrator or to the proceeds from the
sale thereof may file a claim for the property on a form
prescribed by the administrator. The claimant must verify the
claim as to its completeness and accuracy.
(b) The administrator may waive the requirement in
subsection (a) and may pay or deliver property directly to a
person if:
(1) the person receiving the property or payment is
shown to be the apparent owner included on a report filed
under Section 15-401;
(2) the administrator reasonably believes the person
is entitled to receive the property or payment; and
(3) the property has a value of less than $500.
(c) The administrator may change the maximum value in
subsection (b) by administrative rule.
Section 15-904. When administrator must honor claim for
property.
(a) The administrator shall pay or deliver property to a
claimant under subsection (a) of Section 15-903 if the
administrator receives evidence sufficient to establish to the
satisfaction of the administrator that the claimant is the
owner of the property.
(b) A claim will be considered complete when a claimant has
provided all the information and documentation requested by the
administrator as necessary to establish legal ownership and
such information or documentation is entered into the
administrator's unclaimed property system. Unless extended for
reasonable cause, not later than 90 days after a claim is
complete the administrator shall allow or deny the claim and
give the claimant notice in a record of the decision. If a
claimant fails to provide all the information and documentation
requested by the administrator as necessary to establish legal
ownership of the property and the claim is inactive for at
least 90 days, then the administrator may close the claim
without issuing a final decision. However, if the claimant
makes a request in writing for a final decision prior to the
administrator's closing of the claim, the administrator shall
issue a final decision.
(c) If the claim is denied or there is insufficient
evidence to allow the claim under subsection (b):
(1) the administrator shall inform the claimant of the
reason for the denial and may specify what additional
evidence, if any, is required for the claim to be allowed;
(2) the claimant may file an amended claim with the
administrator or commence an action under Section 15-906;
and
(3) the administrator shall consider an amended claim
filed under paragraph (2) as an initial claim.
Section 15-905. Allowance of claim for property.
(a) The administrator shall pay or deliver to the owner the
property or pay to the owner the net proceeds of a sale of the
property, together with income or gain to which the owner is
entitled under Section 15-607. On request of the owner, the
administrator may sell or liquidate property and pay the net
proceeds to the owner, even if the property had been held by
the administrator for less than 3 years or the administrator
has not complied with the notice requirements under Section
15-503.
(b) Property held under this Act by the administrator is
subject to offset under Section 10.05 of the State Comptroller
Act.
Section 15-906. Action by person whose claim is denied. Not
later than one year after filing a claim under subsection (a)
of Section 15-903, the claimant may commence a contested case
pursuant to the Illinois Administrative Procedure Act to
establish a claim by the preponderance of the evidence after
either receiving notice under subsection (b) of Section 15-903
or the claim is deemed denied under subsection (d) of Section
15-903.
ARTICLE 10. VERIFIED REPORT OF PROPERTY; EXAMINATION OF RECORDS
Section 15-1001. Verified report of property. If a person
does not file a report required by Section 15-401 or the
administrator believes that a person may have filed an
inaccurate, incomplete, or false report, the administrator may
require the person to file a verified report in a form
prescribed by the administrator. The verified report must:
(1) state whether the person is holding property
reportable under this Act;
(2) describe property not previously reported or about
which the administrator has inquired;
(3) specifically identify property described under
paragraph (2) about which there is a dispute whether it is
reportable under this Act; and
(4) state the amount or value of the property.
Section 15-1002. Examination of records to determine
compliance. The administrator, at reasonable times and on
reasonable notice, may:
(1) examine the records of any person to determine
whether the person has complied with this Act even if the
person believes it is not in possession of any property
that must be reported, paid, or delivered under this Act;
(2) issue an administrative subpoena requiring the
person or agent of the person to make records available for
examination; and
(3) bring an action seeking judicial enforcement of the
subpoena.
Section 15-1002.1. Examination of State-regulated
financial institutions.
(a) Notwithstanding Section 15-1002 of this Act, for any
financial organization for which the Department of Financial
and Professional Regulation is the primary prudential
regulator, the administrator shall not examine such financial
institution unless the administrator has consulted with the
Secretary of Financial and Professional Regulation and the
Department of Financial and Professional Regulation has not
examined such financial organization for compliance with this
Act within the past 5 years. The Secretary of Financial and
Professional Regulation may waive in writing the provisions of
this subsection (a) in order to permit the administrator to
examine a financial organization or group of financial
organizations for compliance with this Act.
(b) Nothing in this Section shall be construed to prohibit
the administrator from examining a financial organization for
which the Department of Financial and Professional Regulation
is not the primary prudential regulator. Further, nothing is
this Act shall be construed to limit the authority of the
Department of Financial and Professional Regulation to examine
financial organizations.
Section 15-1003. Rules for conducting examination.
(a) The administrator shall adopt rules governing
procedures and standards for an examination under Section
15-1002; the rules may reference any standards concerning
unclaimed property examinations promulgated by the National
Association of Unclaimed Property Administrators and shall
make provisions for multi-state examinations.
(b) After the adoption of rules under subsection (a), an
examination under Section 15-1002 must be performed under the
rules adopted under subsection (a).
(c) If a person subject to examination under Section
15-1002 has filed the reports required under Section 15-401 and
Section 15-1001 and has retained the records required by
Section 15-404, the following rules apply:
(1) The examination must include a review of the
person's records.
(2) The examination may not be based on an estimate
unless the person expressly consents in a record to the use
of an estimate.
(3) The person conducting the examination shall
consider the evidence presented in good faith by the person
in preparing the findings of the examination under Section
15-1007.
Section 15-1004. Records obtained in examination. Records
obtained and records, including work papers, compiled by the
administrator in the course of conducting an examination under
Section 15-1002:
(1) are subject to the confidentiality and security
provisions of Article 14 and are exempt from disclosure
under the Freedom of Information Act;
(2) may be used by the administrator in an action to
collect property or otherwise enforce this Act;
(3) may be used in a joint examination conducted with
another state, the United States, a foreign country or
subordinate unit of a foreign country, or any other
governmental entity if the governmental entity conducting
the examination is legally bound to maintain the
confidentiality and security of information obtained from
a person subject to examination in a manner substantially
equivalent to Article 14;
(4) may be disclosed, on request, to the person that
administers the unclaimed property law of another state for
that state's use in circumstances equivalent to
circumstances described in this Article, if the other state
is required to maintain the confidentiality and security of
information obtained in a manner substantially equivalent
to Article 14;
(5) must be produced by the administrator under an
administrative or judicial subpoena or administrative or
court order; and
(6) must be produced by the administrator on request of
the person subject to the examination in an administrative
or judicial proceeding relating to the property.
Section 15-1005. Evidence of unpaid debt or undischarged
obligation.
(a) A record of a putative holder showing an unpaid debt or
undischarged obligation is prima facie evidence of the debt or
obligation.
(b) A putative holder may establish by a preponderance of
the evidence that there is no unpaid debt or undischarged
obligation for a debt or obligation described in subsection (a)
or that the debt or obligation was not, or no longer is, a
fixed and certain obligation of the putative holder.
(c) A putative holder may overcome prima facie evidence
under subsection (a) by establishing by a preponderance of the
evidence that a check, draft, or similar instrument was:
(1) issued as an unaccepted offer in settlement of an
unliquidated amount;
(2) issued but later was replaced with another
instrument because the earlier instrument was lost or
contained an error that was corrected;
(3) issued to a party affiliated with the issuer;
(4) paid, satisfied, or discharged;
(5) issued in error;
(6) issued without consideration;
(7) issued but there was a failure of consideration;
(8) voided not later than 90 days after issuance for a
valid business reason set forth in a contemporaneous
record; or
(9) issued but not delivered to the third-party payee
for a sufficient reason recorded within a reasonable time
after issuance.
(d) In asserting a defense under this Section, and subject
to the records retention requirements of Section 15-404, a
putative holder may present evidence of a course of dealing
between the putative holder and the apparent owner.
Section 15-1006. Failure of person examined to retain
records. If a person subject to examination under Section
15-1002 does not retain the records required by Section 15-404,
the administrator may determine the value of property due using
a reasonable method of estimation based on all information
available to the administrator, including extrapolation and
use of statistical sampling when appropriate and necessary,
consistent with examination procedures and standards adopted
under Section 15-1003. A payment made based on estimation under
this Section is a penalty for failure to maintain the records
required by Section 15-404 and does not relieve a person from
an obligation to report and deliver property to a State in
which the holder is domiciled.
Section 15-1007. Report to person whose records were
examined. At the conclusion of an examination under Section
15-1002, unless waived in writing by the person being examined,
the administrator shall provide to the person whose records
were examined a report that specifies:
(1) the work performed;
(2) the property types reviewed;
(3) the methodology of any estimation technique,
extrapolation, or statistical sampling used in conducting
the examination;
(4) each calculation showing the value of property
determined to be due; and
(5) the findings of the person conducting the
examination.
Section 15-1008. Informal conference during examination.
(a) If a person subject to examination under Section
15-1002 believes the person conducting the examination has made
an unreasonable or unauthorized request or is not proceeding
expeditiously to complete the examination, the person in a
record may request an informal conference with the
administrator.
(b) If a person in a record requests an informal conference
with the administrator, the administrator shall hold the
informal conference not later than 30 days after receiving the
request. For good cause, and after notice in a record to the
person requesting an informal conference, the administrator
may extend the time for the holding of an informal conference.
The administrator may hold the informal conference in person,
by telephone, or by electronic means.
(c) If an informal conference is held under subsection (b),
not later than 30 days after the conference ends, the
administrator shall provide a response to the person that
requested the conference.
(d) The administrator may deny a request for an informal
conference under this Section if the administrator reasonably
believes that the request was made in bad faith or primarily to
delay the examination. If the administrator denies a request
for an informal conference the denial shall be in a record
provided to the person requesting the informal conference.
Section 15-1009. Administrator's contract with another to
conduct examination.
(a) The administrator may contract with a person to conduct
an examination under this Article. The contract shall be
awarded pursuant to a request for proposals issued in
compliance with the procurement rules of the administrator.
(b) If the administrator contracts with a person under
subsection (a):
(1) the contract may provide for compensation of the
person based on a fixed fee, hourly fee, or contingent fee;
(2) a contingent fee arrangement may not provide for a
payment that exceeds 15% of the amount or value of property
paid or delivered as a result of the examination; and
(3) as authorized in the State Officers and Employees
Money Disposition Act, the administrator may permit the
deduction of fees from property recovered during an
examination under this Article prior to depositing funds
received under this Act into the Unclaimed Property Trust
Fund.
(c) A contract under subsection (a) is a public record
under the Freedom of Information Act.
Section 15-1010. Report by administrator. As part of the
report required by Section 15 of the State Treasurer Act, the
administrator shall compile and include the following
information about property presumed abandoned for the
preceding fiscal year for the State:
(1) the total amount and value of all property paid or
delivered under this Act to the administrator, separated
into:
(A) the part voluntarily paid or delivered; and
(B) the part paid or delivered as a result of an
examination under Section 15-1002;
(2) the total amount and value of all property paid or
delivered by the administrator to persons that made claims
for property held by the administrator under this Act;
(3) the amounts expended from the State Pensions Fund;
and
(4) such other information as the administrator
believes would be useful or informative.
Section 15-1011. Determination of liability for unreported
reportable property. If the administrator determines from an
examination conducted under Section 15-1002 that a putative
holder failed or refused to pay or deliver to the administrator
property which is reportable under this Act, the administrator
shall issue a determination of the putative holder's liability
to pay or deliver and give notice in a record to the putative
holder of the determination.
ARTICLE 11. DETERMINATION OF LIABILITY; PUTATIVE HOLDER
REMEDIES
Section 15-1101. Informal conference.
(a) Not later than 30 days after receipt of a notice under
Section 15-1011, the putative holder may request an informal
conference with the administrator to review the determination.
Except as otherwise provided in this Section, the administrator
may designate an employee to act on behalf of the
administrator.
(b) If a putative holder makes a timely request under
subsection (a) for an informal conference:
(1) not later than 30 days after the date of the
request, the administrator shall set the time and place of
the conference;
(2) the administrator shall give the putative holder
notice in a record of the time and place of the conference;
(3) the conference may be held in person, by telephone,
or by electronic means, as determined by the administrator;
(4) the request tolls the 90-day period under Sections
15-1103 and 15-1104 until notice of a decision under
paragraph (7) has been given to the putative holder or the
putative holder withdraws the request for the conference;
(5) the conference may be postponed, adjourned, and
reconvened as the administrator determines appropriate;
(6) the administrator or administrator's designee with
the approval of the administrator may modify a
determination made under Section 15-1011 or withdraw it;
and
(7) the administrator shall issue a decision in a
record and provide a copy of the record to the putative
holder and examiner not later than 30 days after the
conference ends.
(c) A conference under subsection (b) is not an
administrative remedy and is not a contested case subject to
the Illinois Administrative Procedure Act. An oath is not
required and rules of evidence do not apply in the conference.
(d) At a conference under subsection (b), the putative
holder must be given an opportunity to confer informally with
the administrator and the person that examined the records of
the putative holder to:
(1) discuss the determination made under Section
15-1011; and
(2) present any issue concerning the validity of the
determination.
(e) If the administrator fails to act within the period
prescribed in subsection (b)(1) or (7), the failure does not
affect a right of the administrator, except that interest does
not accrue on the amount for which the putative holder was
determined to be liable under Section 15-1011 during the period
in which the administrator failed to act until the earlier of:
(1) the date under Section 15-1103 the putative holder
initiates administrative review or files an action under
Section 15-1104; or
(2) 90 days after the putative holder received notice
of the administrator's determination under Section 15-1011
if no review was initiated under Section 15-1103 and no
action was filed under Section 15-1104.
(f) The administrator may hold an informal conference with
a putative holder about a determination under Section 15-1011
without a request at any time before the putative holder
initiates administrative review under Section 15-1102.
(g) Interest and penalties under Section 15-1204 continue
to accrue on property not reported, paid, or delivered as
required by this Act after the initiation, and during the
pendency, of an informal conference under this Section.
Section 15-1102. Administrative review.
(a) Not later than 90 days after receiving notice of the
administrator's determination under Section 15-1011, or, if
applicable and as provided in Section 15-1101(b)(4), after
notice of a decision under 15-1101(b)(7) has been given to the
putative holder or the putative holder has withdrawn the
request for an informal conference, a putative holder may
initiate a contested case under the Illinois Administrative
Procedure Act for review of the administrator's determination.
(b) A final decision in an administrative proceeding
initiated under subsection (a) is subject to judicial review
under the Article III of Code of Civil Procedure.
ARTICLE 12. ENFORCEMENT BY ADMINISTRATOR
Section 15-1201. Judicial action to enforce liability.
(a) If a determination under Section 15-1011 becomes final
and is not subject to administrative or judicial review, the
administrator may commence an action in the Circuit Court of
Sangamon County or Cook County, federal court, or in an
appropriate court of another state to enforce the determination
and secure payment or delivery of past due, unpaid, or
undelivered property. The action must be brought not later than
5 years after the determination becomes final.
(b) In an action under subsection (a), if no court in this
State has jurisdiction over the defendant, the administrator
may commence an action in any court having jurisdiction over
the defendant.
Section 15-1202. Interstate and international agreement;
cooperation.
(a) Subject to subsection (b), the administrator may:
(1) exchange information with another state or foreign
country relating to property presumed abandoned or
relating to the possible existence of property presumed
abandoned; and
(2) authorize in a record another state or foreign
country or a person acting on behalf of the other state or
country to examine its records of a putative holder as
provided in Article 10.
(b) An exchange or examination under subsection (a) may be
done only if the state or foreign country has confidentiality
and security requirements substantially equivalent to those in
Article 14 or agrees in a record to be bound by this State's
confidentiality and security requirements.
Section 15-1203. Action involving another state or foreign
country.
(a) The administrator may join another state or foreign
country to examine and seek enforcement of this Act against a
putative holder.
(b) On request of another state or foreign country, the
Attorney General may commence an action on behalf of the other
state or country to enforce, in this State, the law of the
other state or country against a putative holder subject to a
claim by the other state or country.
(c) The administrator may request the official authorized
to enforce the unclaimed property law of another state or
foreign country to commence an action to recover property in
the other state or country on behalf of the administrator. This
state may pay the costs, including reasonable attorney's fees
and expenses, incurred by the other state or foreign country in
an action under this subsection.
(d) The administrator may pursue an action on behalf of
this State to recover property subject to this Act but
delivered to the custody of another state if the administrator
believes the property is subject to the custody of the
administrator.
(e) At the request of the administrator, the Attorney
General may commence an action to recover property on behalf of
the administrator in this State, another state, or a foreign
country. With the written consent of the Attorney General, the
administrator may retain an attorney in this State, another
state, or a foreign country to recover property on behalf of
the administrator in this State, another state, or a foreign
country and may agree to pay attorney's fees based in whole or
in part on a fixed fee, hourly fee, or a percentage of the
amounts or value of property recovered in the action.
(f) Expenses incurred by this State in an action under this
Section may be paid from property received under this Act or
the net proceeds of the property. Expenses paid to recover
property may not be deducted from the amount that is subject to
a claim under this Act by the owner.
Section 15-1204. Interest and penalty for failure to act in
timely manner.
(a) A holder that fails to report, pay, or deliver property
within the time prescribed by this Act shall pay to the
administrator interest at a rate of 1% per month on the
property or value of the property from the date the property
should have been reported, paid, or delivered to the
administrator until the date reported, paid, or delivered.
(b) Except as otherwise provided in Section 15-1 or
15-1206, the administrator may require a holder that fails to
report, pay, or deliver property within the time prescribed by
this Act to pay to the administrator, in addition to interest
included under subsection (a), a civil penalty of $200 for each
day the duty is not performed, up to a cumulative maximum
amount of $5,000.
(c) A holder who fails to report, pay, or deliver property
within the time prescribed by this Act shall not be required to
pay interest under subsection (a) above or be subject to
penalties under subsection (b) above if the failure to report,
pay, or deliver the property was due to lack of knowledge of
the death that established the period of abandonment under this
Act.
Section 15-1205. Other civil penalties.
(a) If a holder enters into a contract or other arrangement
for the purpose of evading an obligation under this Act or
otherwise willfully fails to perform a duty imposed on the
holder under this Act, the administrator may require the holder
to pay the administrator, in addition to interest as provided
in subsection (a) of Section 15-1204, a civil penalty of $1,000
for each day the obligation is evaded or the duty is not
performed, up to a cumulative maximum amount of $25,000, plus
25% of the amount or value of property that should have been
but was not reported, paid, or delivered as a result of the
evasion or failure to perform.
(b) If a holder makes a fraudulent report under this Act,
the administrator may require the holder to pay to the
administrator, in addition to interest under subsection (a) of
Section 15-1204, a civil penalty of $1,000 for each day from
the date the report was made until corrected, up to a
cumulative maximum of $25,000, plus 25% of the amount or value
of any property that should have been reported but was not
included in the report or was underreported.
Section 15-1206. Waiver of interest and penalty. The
administrator:
(1) may waive, in whole or in part, interest under
subsection (a) of Section 15-1204 and penalties under
subsection (b) of Section 15-1204 or Section 15-1; and
(2) shall waive a penalty under subsection (b) of
Section 15-1204 if the administrator determines that the
holder acted in good faith and without negligence.
ARTICLE 13. AGREEMENT TO LOCATE PROPERTY OF APPARENT OWNER HELD
BY ADMINISTRATOR
Section 15-1301. When agreement to locate property
enforceable. An agreement by an apparent owner and another
person, the primary purpose of which is to locate, deliver,
recover, or assist in the location, delivery, or recovery of
property held by the administrator, is enforceable only if the
agreement:
(1) is in a record that clearly states the nature of
the property and the services to be provided;
(2) is signed by or on behalf of the apparent owner;
and
(3) states the amount or value of the property
reasonably expected to be recovered, computed before and
after a fee or other compensation to be paid to the person
has been deducted.
Section 15-1302. When agreement to locate property void.
(a) Subject to subsection (b), an agreement under Section
15-1301 is void if it is entered into during the period
beginning on the date the property was presumed abandoned under
this Act and ending 24 months after the payment or delivery of
the property to the administrator.
(b) If a provision in an agreement described in Section
15-1301 applies to mineral proceeds for which compensation is
to be paid to the other person based in whole or in part on a
part of the underlying minerals or mineral proceeds not then
presumed abandoned, the provision is void regardless of when
the agreement was entered into.
(c) An agreement under subsection (a) which provides for
compensation in an amount that is more than 10% of the amount
collected is unenforceable except by the apparent owner.
(d) An apparent owner or the administrator may assert that
an agreement described in this Section is void on a ground
other than it provides for payment of unconscionable
compensation.
(e) A person attempting to collect a contingent fee for
discovering, on behalf of an apparent owner, presumptively
abandoned property must be licensed as a private detective
pursuant to the Private Detective, Private Alarm, Private
Security, Fingerprint Vendor, and Locksmith Act of 2004.
(f) This Section does not apply to an apparent owner's
agreement with an attorney to pursue a claim for recovery of
specifically identified property held by the administrator or
to contest the administrator's denial of a claim for recovery
of the property.
ARTICLE 14. CONFIDENTIALITY AND SECURITY OF INFORMATION
Section 15-1401. Confidential information.
(a) Except as otherwise provide in this Section,
information that is confidential under law of this State other
than this Act, another state, or the United States, including
"private information" as defined in the Freedom of Information
Act and "personal information" as defined in the Personal
Information Protection Act, continues to be confidential when
disclosed or delivered under this Act to the administrator or
administrator's agent.
(b) Information provided in reports filed pursuant to
Section 15-401, information obtained in the course of an
examination pursuant to Section 15-1002, and the database
required by Section 15-503 is exempt from disclosure under the
Freedom of Information Act.
(c) If reasonably necessary to enforce or implement this
Act, the administrator or the administrator's agent may
disclose confidential information concerning property held by
the administrator or the administrator's agent to:
(1) an apparent owner or the apparent owner's
representative under the Probate Act of 1975, attorney,
other legal representative, or relative;
(2) the representative under the Probate Act of 1975,
other legal representative, relative of a deceased
apparent owner, or a person entitled to inherit from the
deceased apparent owner;
(3) another department or agency of this State or the
United States;
(4) the person that administers the unclaimed property
law of another state, if the other state accords
substantially reciprocal privileges to the administrator
of this State if the other state is required to maintain
the confidentiality and security of information obtained
in a manner substantially equivalent to Article 14;
(5) a person subject to an examination as required by
Section 15-1004; and
(6) an agent of the administrator.
(b) The administrator may include on the website or in the
database the names and addresses of apparent owners of property
held by the administrator as provided in Section 15-503. The
administrator may include in published notices, printed
publications, telecommunications, the Internet, or other media
and on the website or in the database additional information
concerning the apparent owner's property if the administrator
believes the information will assist in identifying and
returning property to the owner and does not disclose personal
information as defined in the Personal Information Protection
Act.
(c) The administrator and the administrator's agent may not
use confidential information provided to them or in their
possession except as expressly authorized by this Act or
required by law other than this Act.
Section 15-1402. Confidentiality agreement. A person to be
examined under Section 15-1002 may require, as a condition of
disclosure of the records of the person to be examined, that
the administrator or the administrator's agent execute and
deliver to the person to be examined a confidentiality
agreement that:
(1) is in a form that is reasonably satisfactory to the
administrator; and
(2) requires the person having access to the records to
comply with the provisions of this Article applicable to
the person.
Section 15-1403. No confidential information in notice.
Except as otherwise provided in Sections 15-501 and 15-502, a
holder is not required under this Act to include confidential
information in a notice the holder is required to provide to an
apparent owner under this Act.
Section 15-1404. Security of information.
(a) If a holder is required to include confidential
information in a report to the administrator, the information
must be provided by a secure means.
(b) If confidential information in a record is provided to
and maintained by the administrator or administrator's agent as
required by this Act, the administrator or agent shall
implement and maintain reasonable security measures to protect
those records from unauthorized access, acquisition,
destruction, use, modification, or disclosure as required by
the Personal Information Protection Act. If a State or federal
law requires the administrator or agent to provide greater
protection to records that contain personal information that
are maintained by the administrator or agent and the
administrator or agent is in compliance with the provisions of
that State or federal law, the administrator or agent is deemed
to be in compliance with the provisions of this subsection.
(c) If there is any breach of the security of the system
data or written material, the administrator and the
administrator's agent shall comply with the notice
requirements of Section 12 of the Personal Information
Protection Act, and shall, if applicable, cooperate with a
holder in complying with the notice requirements of Section 10
of the Personal Information Protection Act.
(d) The administrator and the administrator's agent shall
either return in a secure manner or destroy in a manner
consistent with the Personal Information Protection Act all
confidential information no longer reasonably needed under
this Act.
ARTICLE 15. MISCELLANEOUS
Section 15-1501. Uniformity of application and
construction. In applying and construing this uniform Act
consideration must be given to the need to promote uniformity
of the law with respect to its subject matter among states that
enact it.
Section 15-1502. Relation to Electronic Signatures in
Global and National Commerce Act. This Act modifies, limits, or
supersedes the Electronic Signatures in Global and National
Commerce Act, 15 U.S.C. Section 7001 et seq., but does not
modify, limit, or supersede Section 101(c) of that Act, 15
U.S.C. Section 7001(c), or authorize electronic delivery of any
of the notices described in Section 103(b) of that Act, 15
U.S.C. Section 7003(b).
Section 15-1503. Transitional provision.
(a) An initial report filed under this Act for property
that was not required to be reported before the effective date
of this Act, but that is required to be reported under this
Act, must include all items of property that would have been
presumed abandoned during the 5-year period preceding the
effective date of this Act as if this Act had been in effect
during that period.
(b) This Act does not relieve a holder of a duty that arose
before the effective date of this Act to report, pay, or
deliver property. Subject to subsection (b) of Section 15-610,
a holder that did not comply with the law governing unclaimed
property before the effective date of this Act is subject to
applicable provisions for enforcement and penalties in effect
before the effective date of this Act.
Section 15-1504. Severability. If any provision of this Act
or its application to any person or circumstance is held
invalid, the invalidity does not affect other provisions or
applications of this Act which can be given effect without the
invalid provision or application, and to this end the
provisions of this Act are severable.
ARTICLE 17. AMENDATORY PROVISIONS; UNCLAIMED PROPERTY
(765 ILCS 1025/Act rep.)
Section 17-5. The Uniform Disposition of Unclaimed
Property Act is repealed.
Section 17-10. The Illinois Administrative Procedure Act
is amended by changing Section 1-5 as follows:
(5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
Sec. 1-5. Applicability.
(a) This Act applies to every agency as defined in this
Act. Beginning January 1, 1978, in case of conflict between the
provisions of this Act and the Act creating or conferring power
on an agency, this Act shall control. If, however, an agency
(or its predecessor in the case of an agency that has been
consolidated or reorganized) has existing procedures on July 1,
1977, specifically for contested cases or licensing, those
existing provisions control, except that this exception
respecting contested cases and licensing does not apply if the
Act creating or conferring power on the agency adopts by
express reference the provisions of this Act. Where the Act
creating or conferring power on an agency establishes
administrative procedures not covered by this Act, those
procedures shall remain in effect.
(b) The provisions of this Act do not apply to (i)
preliminary hearings, investigations, or practices where no
final determinations affecting State funding are made by the
State Board of Education, (ii) legal opinions issued under
Section 2-3.7 of the School Code, (iii) as to State colleges
and universities, their disciplinary and grievance
proceedings, academic irregularity and capricious grading
proceedings, and admission standards and procedures, and (iv)
the class specifications for positions and individual position
descriptions prepared and maintained under the Personnel Code.
Those class specifications shall, however, be made reasonably
available to the public for inspection and copying. The
provisions of this Act do not apply to hearings under Section
20 of the Uniform Disposition of Unclaimed Property Act.
(c) Section 5-35 of this Act relating to procedures for
rulemaking does not apply to the following:
(1) Rules adopted by the Pollution Control Board that,
in accordance with Section 7.2 of the Environmental
Protection Act, are identical in substance to federal
regulations or amendments to those regulations
implementing the following: Sections 3001, 3002, 3003,
3004, 3005, and 9003 of the Solid Waste Disposal Act;
Section 105 of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980; Sections 307(b),
307(c), 307(d), 402(b)(8), and 402(b)(9) of the Federal
Water Pollution Control Act; Sections 1412(b), 1414(c),
1417(a), 1421, and 1445(a) of the Safe Drinking Water Act;
and Section 109 of the Clean Air Act.
(2) Rules adopted by the Pollution Control Board that
establish or amend standards for the emission of
hydrocarbons and carbon monoxide from gasoline powered
motor vehicles subject to inspection under the Vehicle
Emissions Inspection Law of 2005 or its predecessor laws.
(3) Procedural rules adopted by the Pollution Control
Board governing requests for exceptions under Section 14.2
of the Environmental Protection Act.
(4) The Pollution Control Board's grant, pursuant to an
adjudicatory determination, of an adjusted standard for
persons who can justify an adjustment consistent with
subsection (a) of Section 27 of the Environmental
Protection Act.
(4.5) The Pollution Control Board's adoption of
time-limited water quality standards under Section 38.5 of
the Environmental Protection Act.
(5) Rules adopted by the Pollution Control Board that
are identical in substance to the regulations adopted by
the Office of the State Fire Marshal under clause (ii) of
paragraph (b) of subsection (3) of Section 2 of the
Gasoline Storage Act.
(d) Pay rates established under Section 8a of the Personnel
Code shall be amended or repealed pursuant to the process set
forth in Section 5-50 within 30 days after it becomes necessary
to do so due to a conflict between the rates and the terms of a
collective bargaining agreement covering the compensation of
an employee subject to that Code.
(e) Section 10-45 of this Act shall not apply to any
hearing, proceeding, or investigation conducted under Section
13-515 of the Public Utilities Act.
(f) Article 10 of this Act does not apply to any hearing,
proceeding, or investigation conducted by the State Council for
the State of Illinois created under Section 3-3-11.05 of the
Unified Code of Corrections or by the Interstate Commission for
Adult Offender Supervision created under the Interstate
Compact for Adult Offender Supervision or by the Interstate
Commission for Juveniles created under the Interstate Compact
for Juveniles.
(g) This Act is subject to the provisions of Article XXI of
the Public Utilities Act. To the extent that any provision of
this Act conflicts with the provisions of that Article XXI, the
provisions of that Article XXI control.
(Source: P.A. 98-463, eff. 8-16-13; 99-937, eff. 2-24-17.)
Section 17-15. The Freedom of Information Act is amended by
changing Section 7.5 as follows:
(5 ILCS 140/7.5)
Sec. 7.5. Statutory exemptions. To the extent provided for
by the statutes referenced below, the following shall be exempt
from inspection and copying:
(a) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(b) Library circulation and order records identifying
library users with specific materials under the Library
Records Confidentiality Act.
(c) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other records
prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(d) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmissible
disease or any information the disclosure of which is
restricted under the Illinois Sexually Transmissible
Disease Control Act.
(e) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
(f) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(g) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(h) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act, and
records of any lawfully created State or local inspector
general's office that would be exempt if created or
obtained by an Executive Inspector General's office under
that Act.
(i) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a local
emergency energy plan ordinance that is adopted under
Section 11-21.5-5 of the Illinois Municipal Code.
(j) Information and data concerning the distribution
of surcharge moneys collected and remitted by wireless
carriers under the Wireless Emergency Telephone Safety
Act.
(k) Law enforcement officer identification information
or driver identification information compiled by a law
enforcement agency or the Department of Transportation
under Section 11-212 of the Illinois Vehicle Code.
(l) Records and information provided to a residential
health care facility resident sexual assault and death
review team or the Executive Council under the Abuse
Prevention Review Team Act.
(m) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the Capital
Crimes Litigation Act. This subsection (n) shall apply
until the conclusion of the trial of the case, even if the
prosecution chooses not to pursue the death penalty prior
to trial or sentencing.
(o) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Regional Transportation Authority under Section 2.11 of
the Regional Transportation Authority Act or the St. Clair
County Transit District under the Bi-State Transit Safety
Act.
(q) Information prohibited from being disclosed by the
Personnel Records Review Act.
(r) Information prohibited from being disclosed by the
Illinois School Student Records Act.
(s) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(t) All identified or deidentified health information
in the form of health data or medical records contained in,
stored in, submitted to, transferred by, or released from
the Illinois Health Information Exchange, and identified
or deidentified health information in the form of health
data and medical records of the Illinois Health Information
Exchange in the possession of the Illinois Health
Information Exchange Authority due to its administration
of the Illinois Health Information Exchange. The terms
"identified" and "deidentified" shall be given the same
meaning as in the Health Insurance Portability and
Accountability Act of 1996, Public Law 104-191, or any
subsequent amendments thereto, and any regulations
promulgated thereunder.
(u) Records and information provided to an independent
team of experts under Brian's Law.
(v) Names and information of people who have applied
for or received Firearm Owner's Identification Cards under
the Firearm Owners Identification Card Act or applied for
or received a concealed carry license under the Firearm
Concealed Carry Act, unless otherwise authorized by the
Firearm Concealed Carry Act; and databases under the
Firearm Concealed Carry Act, records of the Concealed Carry
Licensing Review Board under the Firearm Concealed Carry
Act, and law enforcement agency objections under the
Firearm Concealed Carry Act.
(w) Personally identifiable information which is
exempted from disclosure under subsection (g) of Section
19.1 of the Toll Highway Act.
(x) Information which is exempted from disclosure
under Section 5-1014.3 of the Counties Code or Section
8-11-21 of the Illinois Municipal Code.
(y) Confidential information under the Adult
Protective Services Act and its predecessor enabling
statute, the Elder Abuse and Neglect Act, including
information about the identity and administrative finding
against any caregiver of a verified and substantiated
decision of abuse, neglect, or financial exploitation of an
eligible adult maintained in the Registry established
under Section 7.5 of the Adult Protective Services Act.
(z) Records and information provided to a fatality
review team or the Illinois Fatality Review Team Advisory
Council under Section 15 of the Adult Protective Services
Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) Information which is or was prohibited from
disclosure by the Juvenile Court Act of 1987.
(cc) Recordings made under the Law Enforcement
Officer-Worn Body Camera Act, except to the extent
authorized under that Act.
(dd) Information that is prohibited from being
disclosed under Section 45 of the Condominium and Common
Interest Community Ombudsperson Act.
(ee) (dd) Information that is exempted from disclosure
under Section 30.1 of the Pharmacy Practice Act.
(ff) Information that is exempted from disclosure
under the Revised Uniform Unclaimed Property Act.
(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14;
99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16;
99-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff.
8-19-16; revised 9-1-16.)
Section 17-20. The State Comptroller Act is amended by
changing Section 9 as follows:
(15 ILCS 405/9) (from Ch. 15, par. 209)
Sec. 9. Warrants; vouchers; preaudit.
(a) No payment may be made from public funds held by the
State Treasurer in or outside of the State treasury, except by
warrant drawn by the Comptroller and presented by him to the
treasurer to be countersigned except for payments made pursuant
to Section 9.03 or 9.05 of this Act.
(b) No warrant for the payment of money by the State
Treasurer may be drawn by the Comptroller without the
presentation of itemized vouchers indicating that the
obligation or expenditure is pursuant to law and authorized,
and authorizing the Comptroller to order payment.
(b-1) An itemized voucher for under $5 that is presented to
the Comptroller for payment shall not be paid except through
electronic funds transfer. This subsection (b-1) does not apply
to (i) vouchers presented by the legislative branch of State
government, (ii) vouchers presented by the State Treasurer's
Office for the payment of unclaimed property claims authorized
under the Revised Uniform Disposition of Unclaimed Property
Act, or (iii) vouchers presented by the Department of Revenue
for the payment of refunds of taxes administered by the
Department.
(c) The Comptroller shall examine each voucher required by
law to be filed with him and determine whether unencumbered
appropriations or unencumbered obligational or expenditure
authority other than by appropriation are legally available to
incur the obligation or to make the expenditure of public
funds. If he determines that unencumbered appropriations or
other obligational or expenditure authority are not available
from which to incur the obligation or make the expenditure, the
Comptroller shall refuse to draw a warrant.
(d) The Comptroller shall examine each voucher and all
other documentation required to accompany the voucher, and
shall ascertain whether the voucher and documentation meet all
requirements established by or pursuant to law. If the
Comptroller determines that the voucher and documentation do
not meet applicable requirements established by or pursuant to
law, he shall refuse to draw a warrant. As used in this
Section, "requirements established by or pursuant to law"
includes statutory enactments and requirements established by
rules and regulations adopted pursuant to this Act.
(e) Prior to drawing a warrant, the Comptroller may review
the voucher, any documentation accompanying the voucher, and
any other documentation related to the transaction on file with
him, and determine if the transaction is in accordance with the
law. If based on his review the Comptroller has reason to
believe that such transaction is not in accordance with the
law, he shall refuse to draw a warrant.
(f) Where the Comptroller refuses to draw a warrant
pursuant to this Section, he shall maintain separate records of
such transactions.
(g) State agencies shall have the principal responsibility
for the preaudit of their encumbrances, expenditures, and other
transactions as otherwise required by law.
(Source: P.A. 97-969, eff. 8-16-12; 97-1142, eff. 12-28-12;
98-421, eff. 8-16-13.)
Section 17-25. The State Treasurer Act is amended by
changing Sections 0.02, 0.03, 0.04, 0.05, and 0.06 as follows:
(15 ILCS 505/0.02)
Sec. 0.02. Transfer of powers. The rights, powers, duties,
and functions vested in the Department of Financial
Institutions to administer the Uniform Disposition of
Unclaimed Property Act (superseded by the Revised Uniform
Unclaimed Property Act) are transferred to the State Treasurer
on July 1, 1999; provided, however, that the rights, powers,
duties, and functions involving the examination of the records
of any person that the State Treasurer has reason to believe
has failed to report properly under this Act shall be
transferred to the Office of Banks and Real Estate if the
person is regulated by the Office of Banks and Real Estate
under the Illinois Banking Act, the Corporate Fiduciary Act,
the Foreign Banking Office Act, the Illinois Savings and Loan
Act of 1985, or the Savings Bank Act and shall be retained by
the Department of Financial Institutions if the person is doing
business in the State under the supervision of the Department
of Financial Institutions, the National Credit Union
Administration, the Office of Thrift Supervision, or the
Comptroller of the Currency.
(Source: P.A. 91-16, eff. 6-4-99.)
(15 ILCS 505/0.03)
Sec. 0.03. Transfer of personnel.
(a) Except as provided in subsection (b), personnel
employed by the Department of Financial Institutions on June
30, 1999 to perform duties pertaining to the administration of
the Uniform Disposition of Unclaimed Property Act (superseded
by the Revised Uniform Unclaimed Property Act) are transferred
to the State Treasurer on July 1, 1999.
(b) In the case of a person employed by the Department of
Financial Institutions to perform both duties pertaining to the
administration of the Uniform Disposition of Unclaimed
Property Act (superseded by the Revised Uniform Unclaimed
Property Act) and duties pertaining to a function retained by
the Department of Financial Institutions, the State Treasurer,
in consultation with the Director of Financial Institutions,
shall determine whether to transfer the employee to the Office
of the State Treasurer; until this determination has been made,
the transfer shall not take effect.
(c) The rights of State employees, the State, and its
agencies under the Personnel Code and applicable collective
bargaining agreements and retirement plans are not affected by
this amendatory Act of 1999, except that all positions
transferred to the State Treasurer shall be subject to the
State Treasurer Employment Code effective July 1, 2000.
All transferred employees who are members of collective
bargaining units shall retain their seniority, continuous
service, salary, and accrued benefits. During the pendency of
the existing collective bargaining agreement, the rights
provided for under that agreement and memoranda and supplements
to that agreement, including but not limited to, the rights of
employees performing duties pertaining to the administration
of the Uniform Disposition of Unclaimed Property Act
(superseded by the Revised Uniform Unclaimed Property Act) to
positions in other State agencies and the right of employees in
other State agencies covered by the agreement to positions
performing duties pertaining to the administration of the
Uniform Disposition of Unclaimed Property Act (superseded by
the Revised Uniform Unclaimed Property Act), shall not be
abridged.
The State Treasurer shall continue to honor during their
pendency all bargaining agreements in effect at the time of the
transfer and to recognize all collective bargaining
representatives for the employees who perform or will perform
functions transferred by this amendatory Act of 1999. For all
purposes with respect to the management of the existing
agreement and the negotiation and management of any successor
agreements, the State Treasurer shall be deemed to be the
employer of employees who perform or will perform functions
transferred to the Office of the State Treasurer by this
amendatory Act of 1999; provided that the Illinois Department
of Central Management Services shall be a party to any
grievance or arbitration proceeding held pursuant to the
provisions of the collective bargaining agreement which
involves the movement of employees from the Office of the State
Treasurer to an agency under the jurisdiction of the Governor
covered by the agreement.
(Source: P.A. 91-16, eff. 6-4-99.)
(15 ILCS 505/0.04)
Sec. 0.04. Transfer of property.
(a) Except as provided in subsection (b), all real and
personal property, including but not limited to all books,
records, and documents, and all unexpended appropriations and
pending business pertaining to the administration of the
Uniform Disposition of Unclaimed Property Act (superseded by
the Revised Uniform Unclaimed Property Act) shall be
transferred and delivered to the State Treasurer effective July
1, 1999.
(b) In the case of books, records, or documents that
pertain both to the administration of the Uniform Disposition
of Unclaimed Property Act (superseded by the Revised Uniform
Unclaimed Property Act) and to a function retained by the
Department of Financial Institutions, the State Treasurer, in
consultation with the Director of Financial Institutions,
shall determine whether the books, records, or documents shall
be transferred, copied, or left with the Department of
Financial Institutions; until this determination has been
made, the transfer shall not take effect.
In the case of property or an unexpended appropriation that
pertains both to the administration of the Uniform Disposition
of Unclaimed Property Act (superseded by the Revised Uniform
Unclaimed Property Act) and to a function retained by the
Department of Financial Institutions, the State Treasurer, in
consultation with the Director of Financial Institutions,
shall determine whether the property or unexpended
appropriation shall be transferred, divided, or left with the
Department of Financial Institutions; until this determination
has been made (and, in the case of an unexpended appropriation,
notice of the determination has been filed with the State
Comptroller), the transfer shall not take effect.
(Source: P.A. 91-16, eff. 6-4-99.)
(15 ILCS 505/0.05)
Sec. 0.05. Rules and standards.
(a) The rules and standards of the Department of Financial
Institutions that are in effect on June 30, 1999 and pertain to
the administration of the Uniform Disposition of Unclaimed
Property Act (superseded by the Revised Uniform Unclaimed
Property Act) shall become the rules and standards of the State
Treasurer on July 1, 1999 and shall continue in effect until
amended or repealed by the State Treasurer.
(b) Any rules pertaining to the administration of the
Uniform Disposition of Unclaimed Property Act (superseded by
the Revised Uniform Unclaimed Property Act) that have been
proposed by the Department of Financial Institutions but have
not taken effect or been finally adopted by June 30, 1999 shall
become proposed rules of the State Treasurer on July 1, 1999,
and any rulemaking procedures that have already been completed
by the Department of Financial Institutions need not be
repeated.
(c) As soon as practical after July 1, 1999, the State
Treasurer shall revise and clarify the rules transferred to it
under this amendatory Act of 1999 to reflect the reorganization
of rights, powers, duties, and functions effected by this
amendatory Act of 1999 using the procedures for recodification
of rules available under the Illinois Administrative Procedure
Act, except that existing title, part, and section numbering
for the affected rules may be retained.
(d) As soon as practical after July 1, 1999, the Office of
Banks and Real Estate and the Office of the State Treasurer
shall jointly promulgate rules to reflect the transfer of
examination functions to the Office of Banks and Real Estate
under this amendatory Act of 1999 using the procedures
available under the Illinois Administrative Procedure Act.
(e) As soon as practical after July 1, 1999, the Department
of Financial Institutions and the Office of the State Treasurer
shall jointly promulgate rules to reflect the retention of
examination functions by the Department of Financial
Institutions under this amendatory Act of 1999 using the
procedures available under the Illinois Administrative
Procedure Act.
(Source: P.A. 91-16, eff. 6-4-99.)
(15 ILCS 505/0.06)
Sec. 0.06. Savings provisions.
(a) The rights, powers, duties, and functions transferred
to the State Treasurer or the Commissioner of Banks and Real
Estate by this amendatory Act of 1999 shall be vested in and
exercised by the State Treasurer or the Commissioner of Banks
and Real Estate subject to the provisions of this amendatory
Act of 1999. An act done by the State Treasurer or the
Commissioner of Banks and Real Estate or an officer, employee,
or agent of the State Treasurer or the Commissioner of Banks
and Real Estate in the exercise of the transferred rights,
powers, duties, or functions shall have the same legal effect
as if done by the Department of Financial Institutions or an
officer, employee, or agent of the Department of Financial
Institutions prior to the effective date of this amendatory Act
of 1999.
(b) The transfer of rights, powers, duties, and functions
to the State Treasurer or the Commissioner of Banks and Real
Estate under this amendatory Act of 1999 does not invalidate
any previous action taken by or in respect to the Department of
Financial Institutions or its officers, employees, or agents.
References to the Department of Financial Institutions or its
officers, employees or agents in any document, contract,
agreement, or law shall, in appropriate contexts, be deemed to
refer to the State Treasurer or the Commissioner of Banks and
Real Estate or the officers, employees, or agents of the State
Treasurer or the Commissioner of Banks and Real Estate.
(c) The transfer of rights, powers, duties, and functions
from the Department of Financial Institutions to the State
Treasurer or the Commissioner of Banks and Real Estate under
this amendatory Act of 1999 does not affect the rights,
obligations, or duties of any other person or entity, including
any civil or criminal penalties applicable thereto, arising out
of those transferred rights, powers, duties, and functions.
(d) With respect to matters that pertain to a right, power,
duty, or function transferred to the State Treasurer under this
amendatory Act of 1999:
(1) Beginning July 1, 1999, any report or notice that
was previously required to be made or given by any person
to the Department of Financial Institutions or any of its
officers, employees, or agents under the Uniform
Disposition of Unclaimed Property Act (superseded by the
Revised Uniform Unclaimed Property Act) or rules
promulgated pursuant to that Act shall be made or given in
the same manner to the State Treasurer or his or her
appropriate officer, employee, or agent.
(2) Beginning July 1, 1999, any document that was
previously required to be furnished or served by any person
to or upon the Department of Financial Institutions or any
of its officers, employees, or agents under the Uniform
Disposition of Unclaimed Property Act (superseded by the
Revised Uniform Unclaimed Property Act) or rules
promulgated pursuant to that Act shall be furnished or
served in the same manner to or upon the State Treasurer or
his or her appropriate officer, employee, or agent.
(e) This amendatory Act of 1999 does not affect any act
done, ratified, or canceled, any right occurring or
established, or any action or proceeding had or commenced in an
administrative, civil, or criminal cause before July 1, 1999.
Any such action or proceeding that pertains to the Uniform
Disposition of Unclaimed Property Act (superseded by the
Revised Uniform Unclaimed Property Act) or rules promulgated
pursuant to that Act and that is pending on that date may be
prosecuted, defended, or continued by the State Treasurer.
(Source: P.A. 91-16, eff. 6-4-99.)
Section 17-30. The Financial Institutions Code is amended
by changing Sections 7 and 18.1 as follows:
(20 ILCS 1205/7) (from Ch. 17, par. 108)
Sec. 7. The provisions of "The Illinois Administrative
Procedure Act", as now or hereafter amended, are hereby
expressly adopted and incorporated herein as though a part of
this Act, and shall apply to all administrative rules and
procedures of the Director and the Department of Financial
Institutions under this Act, except that the provisions of the
Administrative Procedure Act regarding contested cases shall
not apply to actions of the Director under Section 15.1 of "An
Act in relation to the definition, licensing and regulation of
community currency exchanges and ambulatory currency
exchanges, and the operators and employees thereof, and to make
an appropriation therefor, and to provide penalties and
remedies for the violation thereof", approved June 30, 1943, as
amended, or Sections 8 and 61 of "The Illinois Credit Union
Act", or to hearings under Section 20 of the "Uniform
Disposition of Unclaimed Property Act".
(Source: P.A. 81-329.)
(20 ILCS 1205/18.1)
Sec. 18.1. Transfer of administration of Uniform
Disposition of Unclaimed Property Act to State Treasurer. The
rights, powers, duties, and functions vested in the Department
of Financial Institutions to administer the Uniform
Disposition of Unclaimed Property Act (superseded by the
Revised Uniform Unclaimed Property Act) are transferred to the
State Treasurer on July 1, 1999 in accordance with Sections
0.02 through 0.06 of the State Treasurer Act; provided,
however, that the rights, powers, duties, and functions
involving the examination of the records of any person that the
State Treasurer has reason to believe has failed to report
properly under this Act shall be transferred to the Office of
Banks and Real Estate if the person is regulated by the Office
of Banks and Real Estate under the Illinois Banking Act, the
Corporate Fiduciary Act, the Foreign Banking Office Act, the
Illinois Savings and Loan Act of 1985, or the Savings Bank Act
and shall be retained by the Department of Financial
Institutions if the person is doing business in the State under
the supervision of the Department of Financial Institutions,
the National Credit Union Administration, the Office of Thrift
Supervision, or the Comptroller of the Currency.
(Source: P.A. 91-16, eff. 6-4-99.)
Section 17-35. The State Finance Act is amended by changing
Sections 6b-1 and 8.12 as follows:
(30 ILCS 105/6b-1) (from Ch. 127, par. 142b1)
Sec. 6b-1. There shall be paid into the State Pensions Fund
the funds and proceeds from the sale of abandoned property as
provided in Section 18 of the Revised Uniform "Uniform
Disposition of Unclaimed Property Act", enacted by the
Seventy-second General Assembly.
(Source: Laws 1961, p. 3423.)
(30 ILCS 105/8.12) (from Ch. 127, par. 144.12)
Sec. 8.12. State Pensions Fund.
(a) The moneys in the State Pensions Fund shall be used
exclusively for the administration of the Revised Uniform
Disposition of Unclaimed Property Act and for the expenses
incurred by the Auditor General for administering the
provisions of Section 2-8.1 of the Illinois State Auditing Act
and for operational expenses of the Office of the State
Treasurer and for the funding of the unfunded liabilities of
the designated retirement systems. Beginning in State fiscal
year 2018, payments to the designated retirement systems under
this Section shall be in addition to, and not in lieu of, any
State contributions required under the Illinois Pension Code.
"Designated retirement systems" means:
(1) the State Employees' Retirement System of
Illinois;
(2) the Teachers' Retirement System of the State of
Illinois;
(3) the State Universities Retirement System;
(4) the Judges Retirement System of Illinois; and
(5) the General Assembly Retirement System.
(b) Each year the General Assembly may make appropriations
from the State Pensions Fund for the administration of the
Revised Uniform Disposition of Unclaimed Property Act.
Each month, the Commissioner of the Office of Banks and
Real Estate shall certify to the State Treasurer the actual
expenditures that the Office of Banks and Real Estate incurred
conducting unclaimed property examinations under the Uniform
Disposition of Unclaimed Property Act during the immediately
preceding month. Within a reasonable time following the
acceptance of such certification by the State Treasurer, the
State Treasurer shall pay from its appropriation from the State
Pensions Fund to the Bank and Trust Company Fund, the Savings
Bank Regulatory Fund, and the Residential Finance Regulatory
Fund an amount equal to the expenditures incurred by each Fund
for that month.
Each month, the Director of Financial Institutions shall
certify to the State Treasurer the actual expenditures that the
Department of Financial Institutions incurred conducting
unclaimed property examinations under the Uniform Disposition
of Unclaimed Property Act during the immediately preceding
month. Within a reasonable time following the acceptance of
such certification by the State Treasurer, the State Treasurer
shall pay from its appropriation from the State Pensions Fund
to the Financial Institution Fund and the Credit Union Fund an
amount equal to the expenditures incurred by each Fund for that
month.
(c) As soon as possible after the effective date of this
amendatory Act of the 93rd General Assembly, the General
Assembly shall appropriate from the State Pensions Fund (1) to
the State Universities Retirement System the amount certified
under Section 15-165 during the prior year, (2) to the Judges
Retirement System of Illinois the amount certified under
Section 18-140 during the prior year, and (3) to the General
Assembly Retirement System the amount certified under Section
2-134 during the prior year as part of the required State
contributions to each of those designated retirement systems;
except that amounts appropriated under this subsection (c) in
State fiscal year 2005 shall not reduce the amount in the State
Pensions Fund below $5,000,000. If the amount in the State
Pensions Fund does not exceed the sum of the amounts certified
in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,
the amount paid to each designated retirement system under this
subsection shall be reduced in proportion to the amount
certified by each of those designated retirement systems.
(c-5) For fiscal years 2006 through 2017, the General
Assembly shall appropriate from the State Pensions Fund to the
State Universities Retirement System the amount estimated to be
available during the fiscal year in the State Pensions Fund;
provided, however, that the amounts appropriated under this
subsection (c-5) shall not reduce the amount in the State
Pensions Fund below $5,000,000.
(c-6) For fiscal year 2018 and each fiscal year thereafter,
as soon as may be practical after any money is deposited into
the State Pensions Fund from the Unclaimed Property Trust Fund,
the State Treasurer shall apportion the deposited amount among
the designated retirement systems as defined in subsection (a)
to reduce their actuarial reserve deficiencies. The State
Comptroller and State Treasurer shall pay the apportioned
amounts to the designated retirement systems to fund the
unfunded liabilities of the designated retirement systems. The
amount apportioned to each designated retirement system shall
constitute a portion of the amount estimated to be available
for appropriation from the State Pensions Fund that is the same
as that retirement system's portion of the total actual reserve
deficiency of the systems, as determined annually by the
Governor's Office of Management and Budget at the request of
the State Treasurer. The amounts apportioned under this
subsection shall not reduce the amount in the State Pensions
Fund below $5,000,000.
(d) The Governor's Office of Management and Budget shall
determine the individual and total reserve deficiencies of the
designated retirement systems. For this purpose, the
Governor's Office of Management and Budget shall utilize the
latest available audit and actuarial reports of each of the
retirement systems and the relevant reports and statistics of
the Public Employee Pension Fund Division of the Department of
Insurance.
(d-1) As soon as practicable after the effective date of
this amendatory Act of the 93rd General Assembly, the
Comptroller shall direct and the Treasurer shall transfer from
the State Pensions Fund to the General Revenue Fund, as funds
become available, a sum equal to the amounts that would have
been paid from the State Pensions Fund to the Teachers'
Retirement System of the State of Illinois, the State
Universities Retirement System, the Judges Retirement System
of Illinois, the General Assembly Retirement System, and the
State Employees' Retirement System of Illinois after the
effective date of this amendatory Act during the remainder of
fiscal year 2004 to the designated retirement systems from the
appropriations provided for in this Section if the transfers
provided in Section 6z-61 had not occurred. The transfers
described in this subsection (d-1) are to partially repay the
General Revenue Fund for the costs associated with the bonds
used to fund the moneys transferred to the designated
retirement systems under Section 6z-61.
(e) The changes to this Section made by this amendatory Act
of 1994 shall first apply to distributions from the Fund for
State fiscal year 1996.
(Source: P.A. 98-24, eff. 6-19-13; 98-463, eff. 8-16-13;
98-674, eff. 6-30-14; 98-1081, eff. 1-1-15; 99-8, eff. 7-9-15;
99-78, eff. 7-20-15; 99-523, eff. 6-30-16.)
Section 17-40. The State Officers and Employees Money
Disposition Act is amended by changing Section 2 as follows:
(30 ILCS 230/2) (from Ch. 127, par. 171)
Sec. 2. Accounts of money received; payment into State
treasury.
(a) Every officer, board, commission, commissioner,
department, institution, arm or agency brought within the
provisions of this Act by Section 1 shall keep in proper books
a detailed itemized account of all moneys received for or on
behalf of the State of Illinois, showing the date of receipt,
the payor, and purpose and amount, and the date and manner of
disbursement as hereinafter provided, and, unless a different
time of payment is expressly provided by law or by rules or
regulations promulgated under subsection (b) of this Section,
shall pay into the State treasury the gross amount of money so
received on the day of actual physical receipt with respect to
any single item of receipt exceeding $10,000, within 24 hours
of actual physical receipt with respect to an accumulation of
receipts of $10,000 or more, or within 48 hours of actual
physical receipt with respect to an accumulation of receipts
exceeding $500 but less than $10,000, disregarding holidays,
Saturdays and Sundays, after the receipt of same, without any
deduction on account of salaries, fees, costs, charges,
expenses or claims of any description whatever; provided that:
(1) the provisions of (i) Section 2505-475 of the
Department of Revenue Law (20 ILCS 2505/2505-475), (ii) any
specific taxing statute authorizing a claim for credit
procedure instead of the actual making of refunds, (iii)
Section 505 of the Illinois Controlled Substances Act, (iv)
Section 85 of the Methamphetamine Control and Community
Protection Act, authorizing the Director of State Police to
dispose of forfeited property, which includes the sale and
disposition of the proceeds of the sale of forfeited
property, and the Department of Central Management
Services to be reimbursed for costs incurred with the sales
of forfeited vehicles, boats or aircraft and to pay to bona
fide or innocent purchasers, conditional sales vendors or
mortgagees of such vehicles, boats or aircraft their
interest in such vehicles, boats or aircraft, and (v)
Section 6b-2 of the State Finance Act, establishing
procedures for handling cash receipts from the sale of
pari-mutuel wagering tickets, shall not be deemed to be in
conflict with the requirements of this Section;
(2) any fees received by the State Registrar of Vital
Records pursuant to the Vital Records Act which are
insufficient in amount may be returned by the Registrar as
provided in that Act;
(3) any fees received by the Department of Public
Health under the Food Handling Regulation Enforcement Act
that are submitted for renewal of an expired food service
sanitation manager certificate may be returned by the
Director as provided in that Act;
(3.5) the State Treasurer may permit the deduction of
fees by third-party unclaimed property examiners from the
property recovered by the examiners for the State of
Illinois during examinations of holders located outside
the State under which the Office of the Treasurer has
agreed to pay for the examinations based upon a percentage,
set by rule by the State Treasurer in accordance with the
Revised Uniform Unclaimed Property Illinois Administrative
Procedure Act, of the property recovered during the
examination; and
(4) if the amount of money received does not exceed
$500, such money may be retained and need not be paid into
the State treasury until the total amount of money so
received exceeds $500, or until the next succeeding 1st or
15th day of each month (or until the next business day if
these days fall on Sunday or a holiday), whichever is
earlier, at which earlier time such money shall be paid
into the State treasury, except that if a local bank or
savings and loan association account has been authorized by
law, any balances shall be paid into the State treasury on
Monday of each week if more than $500 is to be deposited in
any fund.
Single items of receipt exceeding $10,000 received after 2 p.m.
on a working day may be deemed to have been received on the
next working day for purposes of fulfilling the requirement
that the item be deposited on the day of actual physical
receipt.
No money belonging to or left for the use of the State
shall be expended or applied except in consequence of an
appropriation made by law and upon the warrant of the State
Comptroller. However, payments made by the Comptroller to
persons by direct deposit need not be made upon the warrant of
the Comptroller, but if not made upon a warrant, shall be made
in accordance with Section 9.02 of the State Comptroller Act.
All moneys so paid into the State treasury shall, unless
required by some statute to be held in the State treasury in a
separate or special fund, be covered into the General Revenue
Fund in the State treasury. Moneys received in the form of
checks, drafts or similar instruments shall be properly
endorsed, if necessary, and delivered to the State Treasurer
for collection. The State Treasurer shall remit such collected
funds to the depositing officer, board, commission,
commissioner, department, institution, arm or agency by
Treasurers Draft or through electronic funds transfer. The
draft or notification of the electronic funds transfer shall be
provided to the State Comptroller to allow deposit into the
appropriate fund.
(b) Different time periods for the payment of public funds
into the State treasury or to the State Treasurer, in excess of
the periods established in subsection (a) of this Section, but
not in excess of 30 days after receipt of such funds, may be
established and revised from time to time by rules or
regulations promulgated jointly by the State Treasurer and the
State Comptroller in accordance with the Illinois
Administrative Procedure Act. The different time periods
established by rule or regulation under this subsection may
vary according to the nature and amounts of the funds received,
the locations at which the funds are received, whether
compliance with the deposit requirements specified in
subsection (a) of this Section would be cost effective, and
such other circumstances and conditions as the promulgating
authorities consider to be appropriate. The Treasurer and the
Comptroller shall review all such different time periods
established pursuant to this subsection every 2 years from the
establishment thereof and upon such review, unless it is
determined that it is economically unfeasible for the agency to
comply with the provisions of subsection (a), shall repeal such
different time period.
(Source: P.A. 94-556, eff. 9-11-05.)
Section 17-45. The Counties Code is amended by changing
Section 3-3034 as follows:
(55 ILCS 5/3-3034) (from Ch. 34, par. 3-3034)
Sec. 3-3034. Disposition of body. After the inquest the
coroner may deliver the body or human remains of the deceased
to the family of the deceased or, if there are no family
members to accept the body or the remains, then to friends of
the deceased, if there be any, but if not, the coroner shall
cause the body or the remains to be decently buried, cremated,
or donated for medical science purposes, the expenses to be
paid from the property of the deceased, if there is sufficient,
if not, by the county. The coroner may not approve the
cremation or donation of the body if it is necessary to
preserve the body for law enforcement purposes. If the State
Treasurer, pursuant to the Revised Uniform Disposition of
Unclaimed Property Act, delivers human remains to the coroner,
the coroner shall cause the human remains to be disposed of as
provided in this Section. If the police department of any
municipality or county investigates abandoned cremated
remains, determines that they are human remains, and cannot
locate the owner of the remains, then the police shall deliver
the remains to the coroner, and the coroner shall cause the
remains to be disposed of as provided in this Section.
(Source: P.A. 96-1339, eff. 7-27-10; 97-679, eff. 2-6-12.)
Section 17-50. The Illinois Banking Act is amended by
changing Sections 48, 48.1, 48.3, and 65 as follows:
(205 ILCS 5/48)
Sec. 48. Secretary's powers; duties. The Secretary shall
have the powers and authority, and is charged with the duties
and responsibilities designated in this Act, and a State bank
shall not be subject to any other visitorial power other than
as authorized by this Act, except those vested in the courts,
or upon prior consultation with the Secretary, a foreign bank
regulator with an appropriate supervisory interest in the
parent or affiliate of a state bank. In the performance of the
Secretary's duties:
(1) The Commissioner shall call for statements from all
State banks as provided in Section 47 at least one time
during each calendar quarter.
(2) (a) The Commissioner, as often as the Commissioner
shall deem necessary or proper, and no less frequently than
18 months following the preceding examination, shall
appoint a suitable person or persons to make an examination
of the affairs of every State bank, except that for every
eligible State bank, as defined by regulation, the
Commissioner in lieu of the examination may accept on an
alternating basis the examination made by the eligible
State bank's appropriate federal banking agency pursuant
to Section 111 of the Federal Deposit Insurance Corporation
Improvement Act of 1991, provided the appropriate federal
banking agency has made such an examination. A person so
appointed shall not be a stockholder or officer or employee
of any bank which that person may be directed to examine,
and shall have powers to make a thorough examination into
all the affairs of the bank and in so doing to examine any
of the officers or agents or employees thereof on oath and
shall make a full and detailed report of the condition of
the bank to the Commissioner. In making the examination the
examiners shall include an examination of the affairs of
all the affiliates of the bank, as defined in subsection
(b) of Section 35.2 of this Act, or subsidiaries of the
bank as shall be necessary to disclose fully the conditions
of the subsidiaries or affiliates, the relations between
the bank and the subsidiaries or affiliates and the effect
of those relations upon the affairs of the bank, and in
connection therewith shall have power to examine any of the
officers, directors, agents, or employees of the
subsidiaries or affiliates on oath. After May 31, 1997, the
Commissioner may enter into cooperative agreements with
state regulatory authorities of other states to provide for
examination of State bank branches in those states, and the
Commissioner may accept reports of examinations of State
bank branches from those state regulatory authorities.
These cooperative agreements may set forth the manner in
which the other state regulatory authorities may be
compensated for examinations prepared for and submitted to
the Commissioner.
(b) After May 31, 1997, the Commissioner is authorized
to examine, as often as the Commissioner shall deem
necessary or proper, branches of out-of-state banks. The
Commissioner may establish and may assess fees to be paid
to the Commissioner for examinations under this subsection
(b). The fees shall be borne by the out-of-state bank,
unless the fees are borne by the state regulatory authority
that chartered the out-of-state bank, as determined by a
cooperative agreement between the Commissioner and the
state regulatory authority that chartered the out-of-state
bank.
(2.1) Pursuant to paragraph (a) of subsection (6) of
this Section, the Secretary shall adopt rules that ensure
consistency and due process in the examination process. The
Secretary may also establish guidelines that (i) define the
scope of the examination process and (ii) clarify
examination items to be resolved. The rules, formal
guidance, interpretive letters, or opinions furnished to
State banks by the Secretary may be relied upon by the
State banks.
(2.5) Whenever any State bank, any subsidiary or
affiliate of a State bank, or after May 31, 1997, any
branch of an out-of-state bank causes to be performed, by
contract or otherwise, any bank services for itself,
whether on or off its premises:
(a) that performance shall be subject to
examination by the Commissioner to the same extent as
if services were being performed by the bank or, after
May 31, 1997, branch of the out-of-state bank itself on
its own premises; and
(b) the bank or, after May 31, 1997, branch of the
out-of-state bank shall notify the Commissioner of the
existence of a service relationship. The notification
shall be submitted with the first statement of
condition (as required by Section 47 of this Act) due
after the making of the service contract or the
performance of the service, whichever occurs first.
The Commissioner shall be notified of each subsequent
contract in the same manner.
For purposes of this subsection (2.5), the term "bank
services" means services such as sorting and posting of
checks and deposits, computation and posting of interest
and other credits and charges, preparation and mailing of
checks, statements, notices, and similar items, or any
other clerical, bookkeeping, accounting, statistical, or
similar functions performed for a State bank, including but
not limited to electronic data processing related to those
bank services.
(3) The expense of administering this Act, including
the expense of the examinations of State banks as provided
in this Act, shall to the extent of the amounts resulting
from the fees provided for in paragraphs (a), (a-2), and
(b) of this subsection (3) be assessed against and borne by
the State banks:
(a) Each bank shall pay to the Secretary a Call
Report Fee which shall be paid in quarterly
installments equal to one-fourth of the sum of the
annual fixed fee of $800, plus a variable fee based on
the assets shown on the quarterly statement of
condition delivered to the Secretary in accordance
with Section 47 for the preceding quarter according to
the following schedule: 16 per $1,000 of the first
$5,000,000 of total assets, 15 per $1,000 of the next
$20,000,000 of total assets, 13 per $1,000 of the next
$75,000,000 of total assets, 9 per $1,000 of the next
$400,000,000 of total assets, 7 per $1,000 of the next
$500,000,000 of total assets, and 5 per $1,000 of all
assets in excess of $1,000,000,000, of the State bank.
The Call Report Fee shall be calculated by the
Secretary and billed to the banks for remittance at the
time of the quarterly statements of condition provided
for in Section 47. The Secretary may require payment of
the fees provided in this Section by an electronic
transfer of funds or an automatic debit of an account
of each of the State banks. In case more than one
examination of any bank is deemed by the Secretary to
be necessary in any examination frequency cycle
specified in subsection 2(a) of this Section, and is
performed at his direction, the Secretary may assess a
reasonable additional fee to recover the cost of the
additional examination; provided, however, that an
examination conducted at the request of the State
Treasurer pursuant to the Uniform Disposition of
Unclaimed Property Act shall not be deemed to be an
additional examination under this Section. In lieu of
the method and amounts set forth in this paragraph (a)
for the calculation of the Call Report Fee, the
Secretary may specify by rule that the Call Report Fees
provided by this Section may be assessed semiannually
or some other period and may provide in the rule the
formula to be used for calculating and assessing the
periodic Call Report Fees to be paid by State banks.
(a-1) If in the opinion of the Commissioner an
emergency exists or appears likely, the Commissioner
may assign an examiner or examiners to monitor the
affairs of a State bank with whatever frequency he
deems appropriate, including but not limited to a daily
basis. The reasonable and necessary expenses of the
Commissioner during the period of the monitoring shall
be borne by the subject bank. The Commissioner shall
furnish the State bank a statement of time and expenses
if requested to do so within 30 days of the conclusion
of the monitoring period.
(a-2) On and after January 1, 1990, the reasonable
and necessary expenses of the Commissioner during
examination of the performance of electronic data
processing services under subsection (2.5) shall be
borne by the banks for which the services are provided.
An amount, based upon a fee structure prescribed by the
Commissioner, shall be paid by the banks or, after May
31, 1997, branches of out-of-state banks receiving the
electronic data processing services along with the
Call Report Fee assessed under paragraph (a) of this
subsection (3).
(a-3) After May 31, 1997, the reasonable and
necessary expenses of the Commissioner during
examination of the performance of electronic data
processing services under subsection (2.5) at or on
behalf of branches of out-of-state banks shall be borne
by the out-of-state banks, unless those expenses are
borne by the state regulatory authorities that
chartered the out-of-state banks, as determined by
cooperative agreements between the Commissioner and
the state regulatory authorities that chartered the
out-of-state banks.
(b) "Fiscal year" for purposes of this Section 48
is defined as a period beginning July 1 of any year and
ending June 30 of the next year. The Commissioner shall
receive for each fiscal year, commencing with the
fiscal year ending June 30, 1987, a contingent fee
equal to the lesser of the aggregate of the fees paid
by all State banks under paragraph (a) of subsection
(3) for that year, or the amount, if any, whereby the
aggregate of the administration expenses, as defined
in paragraph (c), for that fiscal year exceeds the sum
of the aggregate of the fees payable by all State banks
for that year under paragraph (a) of subsection (3),
plus any amounts transferred into the Bank and Trust
Company Fund from the State Pensions Fund for that
year, plus all other amounts collected by the
Commissioner for that year under any other provision of
this Act, plus the aggregate of all fees collected for
that year by the Commissioner under the Corporate
Fiduciary Act, excluding the receivership fees
provided for in Section 5-10 of the Corporate Fiduciary
Act, and the Foreign Banking Office Act. The aggregate
amount of the contingent fee thus arrived at for any
fiscal year shall be apportioned amongst, assessed
upon, and paid by the State banks and foreign banking
corporations, respectively, in the same proportion
that the fee of each under paragraph (a) of subsection
(3), respectively, for that year bears to the aggregate
for that year of the fees collected under paragraph (a)
of subsection (3). The aggregate amount of the
contingent fee, and the portion thereof to be assessed
upon each State bank and foreign banking corporation,
respectively, shall be determined by the Commissioner
and shall be paid by each, respectively, within 120
days of the close of the period for which the
contingent fee is computed and is payable, and the
Commissioner shall give 20 days' days advance notice of
the amount of the contingent fee payable by the State
bank and of the date fixed by the Commissioner for
payment of the fee.
(c) The "administration expenses" for any fiscal
year shall mean the ordinary and contingent expenses
for that year incident to making the examinations
provided for by, and for otherwise administering, this
Act, the Corporate Fiduciary Act, excluding the
expenses paid from the Corporate Fiduciary
Receivership account in the Bank and Trust Company
Fund, the Foreign Banking Office Act, the Electronic
Fund Transfer Act, and the Illinois Bank Examiners'
Education Foundation Act, including all salaries and
other compensation paid for personal services rendered
for the State by officers or employees of the State,
including the Commissioner and the Deputy
Commissioners, communication equipment and services,
office furnishings, surety bond premiums, and travel
expenses of those officers and employees, employees,
expenditures or charges for the acquisition,
enlargement or improvement of, or for the use of, any
office space, building, or structure, or expenditures
for the maintenance thereof or for furnishing heat,
light, or power with respect thereto, all to the extent
that those expenditures are directly incidental to
such examinations or administration. The Commissioner
shall not be required by paragraphs (c) or (d-1) of
this subsection (3) to maintain in any fiscal year's
budget appropriated reserves for accrued vacation and
accrued sick leave that is required to be paid to
employees of the Commissioner upon termination of
their service with the Commissioner in an amount that
is more than is reasonably anticipated to be necessary
for any anticipated turnover in employees, whether due
to normal attrition or due to layoffs, terminations, or
resignations.
(d) The aggregate of all fees collected by the
Secretary under this Act, the Corporate Fiduciary Act,
or the Foreign Banking Office Act on and after July 1,
1979, shall be paid promptly after receipt of the same,
accompanied by a detailed statement thereof, into the
State treasury and shall be set apart in a special fund
to be known as the "Bank and Trust Company Fund",
except as provided in paragraph (c) of subsection (11)
of this Section. All earnings received from
investments of funds in the Bank and Trust Company Fund
shall be deposited in the Bank and Trust Company Fund
and may be used for the same purposes as fees deposited
in that Fund. The amount from time to time deposited
into the Bank and Trust Company Fund shall be used: (i)
to offset the ordinary administrative expenses of the
Secretary as defined in this Section or (ii) as a
credit against fees under paragraph (d-1) of this
subsection (3). Nothing in this amendatory Act of 1979
shall prevent continuing the practice of paying
expenses involving salaries, retirement, social
security, and State-paid insurance premiums of State
officers by appropriations from the General Revenue
Fund. However, the General Revenue Fund shall be
reimbursed for those payments made on and after July 1,
1979, by an annual transfer of funds from the Bank and
Trust Company Fund. Moneys in the Bank and Trust
Company Fund may be transferred to the Professions
Indirect Cost Fund, as authorized under Section
2105-300 of the Department of Professional Regulation
Law of the Civil Administrative Code of Illinois.
Notwithstanding provisions in the State Finance
Act, as now or hereafter amended, or any other law to
the contrary, the sum of $18,788,847 shall be
transferred from the Bank and Trust Company Fund to the
Financial Institutions Settlement of 2008 Fund on the
effective date of this amendatory Act of the 95th
General Assembly, or as soon thereafter as practical.
Notwithstanding provisions in the State Finance
Act, as now or hereafter amended, or any other law to
the contrary, the Governor may, during any fiscal year
through January 10, 2011, from time to time direct the
State Treasurer and Comptroller to transfer a
specified sum not exceeding 10% of the revenues to be
deposited into the Bank and Trust Company Fund during
that fiscal year from that Fund to the General Revenue
Fund in order to help defray the State's operating
costs for the fiscal year. Notwithstanding provisions
in the State Finance Act, as now or hereafter amended,
or any other law to the contrary, the total sum
transferred during any fiscal year through January 10,
2011, from the Bank and Trust Company Fund to the
General Revenue Fund pursuant to this provision shall
not exceed during any fiscal year 10% of the revenues
to be deposited into the Bank and Trust Company Fund
during that fiscal year. The State Treasurer and
Comptroller shall transfer the amounts designated
under this Section as soon as may be practicable after
receiving the direction to transfer from the Governor.
(d-1) Adequate funds shall be available in the Bank
and Trust Company Fund to permit the timely payment of
administration expenses. In each fiscal year the total
administration expenses shall be deducted from the
total fees collected by the Commissioner and the
remainder transferred into the Cash Flow Reserve
Account, unless the balance of the Cash Flow Reserve
Account prior to the transfer equals or exceeds
one-fourth of the total initial appropriations from
the Bank and Trust Company Fund for the subsequent
year, in which case the remainder shall be credited to
State banks and foreign banking corporations and
applied against their fees for the subsequent year. The
amount credited to each State bank and foreign banking
corporation shall be in the same proportion as the Call
Report Fees paid by each for the year bear to the total
Call Report Fees collected for the year. If, after a
transfer to the Cash Flow Reserve Account is made or if
no remainder is available for transfer, the balance of
the Cash Flow Reserve Account is less than one-fourth
of the total initial appropriations for the subsequent
year and the amount transferred is less than 5% of the
total Call Report Fees for the year, additional amounts
needed to make the transfer equal to 5% of the total
Call Report Fees for the year shall be apportioned
amongst, assessed upon, and paid by the State banks and
foreign banking corporations in the same proportion
that the Call Report Fees of each, respectively, for
the year bear to the total Call Report Fees collected
for the year. The additional amounts assessed shall be
transferred into the Cash Flow Reserve Account. For
purposes of this paragraph (d-1), the calculation of
the fees collected by the Commissioner shall exclude
the receivership fees provided for in Section 5-10 of
the Corporate Fiduciary Act.
(e) The Commissioner may upon request certify to
any public record in his keeping and shall have
authority to levy a reasonable charge for issuing
certifications of any public record in his keeping.
(f) In addition to fees authorized elsewhere in
this Act, the Commissioner may, in connection with a
review, approval, or provision of a service, levy a
reasonable charge to recover the cost of the review,
approval, or service.
(4) Nothing contained in this Act shall be construed to
limit the obligation relative to examinations and reports
of any State bank, deposits in which are to any extent
insured by the United States or any agency thereof, nor to
limit in any way the powers of the Commissioner with
reference to examinations and reports of that bank.
(5) The nature and condition of the assets in or
investment of any bonus, pension, or profit sharing plan
for officers or employees of every State bank or, after May
31, 1997, branch of an out-of-state bank shall be deemed to
be included in the affairs of that State bank or branch of
an out-of-state bank subject to examination by the
Commissioner under the provisions of subsection (2) of this
Section, and if the Commissioner shall find from an
examination that the condition of or operation of the
investments or assets of the plan is unlawful, fraudulent,
or unsafe, or that any trustee has abused his trust, the
Commissioner shall, if the situation so found by the
Commissioner shall not be corrected to his satisfaction
within 60 days after the Commissioner has given notice to
the board of directors of the State bank or out-of-state
bank of his findings, report the facts to the Attorney
General who shall thereupon institute proceedings against
the State bank or out-of-state bank, the board of directors
thereof, or the trustees under such plan as the nature of
the case may require.
(6) The Commissioner shall have the power:
(a) To promulgate reasonable rules for the purpose
of administering the provisions of this Act.
(a-5) To impose conditions on any approval issued
by the Commissioner if he determines that the
conditions are necessary or appropriate. These
conditions shall be imposed in writing and shall
continue in effect for the period prescribed by the
Commissioner.
(b) To issue orders against any person, if the
Commissioner has reasonable cause to believe that an
unsafe or unsound banking practice has occurred, is
occurring, or is about to occur, if any person has
violated, is violating, or is about to violate any law,
rule, or written agreement with the Commissioner, or
for the purpose of administering the provisions of this
Act and any rule promulgated in accordance with this
Act.
(b-1) To enter into agreements with a bank
establishing a program to correct the condition of the
bank or its practices.
(c) To appoint hearing officers to execute any of
the powers granted to the Commissioner under this
Section for the purpose of administering this Act and
any rule promulgated in accordance with this Act and
otherwise to authorize, in writing, an officer or
employee of the Office of Banks and Real Estate to
exercise his powers under this Act.
(d) To subpoena witnesses, to compel their
attendance, to administer an oath, to examine any
person under oath, and to require the production of any
relevant books, papers, accounts, and documents in the
course of and pursuant to any investigation being
conducted, or any action being taken, by the
Commissioner in respect of any matter relating to the
duties imposed upon, or the powers vested in, the
Commissioner under the provisions of this Act or any
rule promulgated in accordance with this Act.
(e) To conduct hearings.
(7) Whenever, in the opinion of the Secretary, any
director, officer, employee, or agent of a State bank or
any subsidiary or bank holding company of the bank or,
after May 31, 1997, of any branch of an out-of-state bank
or any subsidiary or bank holding company of the bank shall
have violated any law, rule, or order relating to that bank
or any subsidiary or bank holding company of the bank,
shall have obstructed or impeded any examination or
investigation by the Secretary, shall have engaged in an
unsafe or unsound practice in conducting the business of
that bank or any subsidiary or bank holding company of the
bank, or shall have violated any law or engaged or
participated in any unsafe or unsound practice in
connection with any financial institution or other
business entity such that the character and fitness of the
director, officer, employee, or agent does not assure
reasonable promise of safe and sound operation of the State
bank, the Secretary may issue an order of removal. If, in
the opinion of the Secretary, any former director, officer,
employee, or agent of a State bank or any subsidiary or
bank holding company of the bank, prior to the termination
of his or her service with that bank or any subsidiary or
bank holding company of the bank, violated any law, rule,
or order relating to that State bank or any subsidiary or
bank holding company of the bank, obstructed or impeded any
examination or investigation by the Secretary, engaged in
an unsafe or unsound practice in conducting the business of
that bank or any subsidiary or bank holding company of the
bank, or violated any law or engaged or participated in any
unsafe or unsound practice in connection with any financial
institution or other business entity such that the
character and fitness of the director, officer, employee,
or agent would not have assured reasonable promise of safe
and sound operation of the State bank, the Secretary may
issue an order prohibiting that person from further service
with a bank or any subsidiary or bank holding company of
the bank as a director, officer, employee, or agent. An
order issued pursuant to this subsection shall be served
upon the director, officer, employee, or agent. A copy of
the order shall be sent to each director of the bank
affected by registered mail. A copy of the order shall also
be served upon the bank of which he is a director, officer,
employee, or agent, whereupon he shall cease to be a
director, officer, employee, or agent of that bank. The
Secretary may institute a civil action against the
director, officer, or agent of the State bank or, after May
31, 1997, of the branch of the out-of-state bank against
whom any order provided for by this subsection (7) of this
Section 48 has been issued, and against the State bank or,
after May 31, 1997, out-of-state bank, to enforce
compliance with or to enjoin any violation of the terms of
the order. Any person who has been the subject of an order
of removal or an order of prohibition issued by the
Secretary under this subsection or Section 5-6 of the
Corporate Fiduciary Act may not thereafter serve as
director, officer, employee, or agent of any State bank or
of any branch of any out-of-state bank, or of any corporate
fiduciary, as defined in Section 1-5.05 of the Corporate
Fiduciary Act, or of any other entity that is subject to
licensure or regulation by the Division of Banking unless
the Secretary has granted prior approval in writing.
For purposes of this paragraph (7), "bank holding
company" has the meaning prescribed in Section 2 of the
Illinois Bank Holding Company Act of 1957.
(8) The Commissioner may impose civil penalties of up
to $100,000 against any person for each violation of any
provision of this Act, any rule promulgated in accordance
with this Act, any order of the Commissioner, or any other
action which in the Commissioner's discretion is an unsafe
or unsound banking practice.
(9) The Commissioner may impose civil penalties of up
to $100 against any person for the first failure to comply
with reporting requirements set forth in the report of
examination of the bank and up to $200 for the second and
subsequent failures to comply with those reporting
requirements.
(10) All final administrative decisions of the
Commissioner hereunder shall be subject to judicial review
pursuant to the provisions of the Administrative Review
Law. For matters involving administrative review, venue
shall be in either Sangamon County or Cook County.
(11) The endowment fund for the Illinois Bank
Examiners' Education Foundation shall be administered as
follows:
(a) (Blank).
(b) The Foundation is empowered to receive
voluntary contributions, gifts, grants, bequests, and
donations on behalf of the Illinois Bank Examiners'
Education Foundation from national banks and other
persons for the purpose of funding the endowment of the
Illinois Bank Examiners' Education Foundation.
(c) The aggregate of all special educational fees
collected by the Secretary and property received by the
Secretary on behalf of the Illinois Bank Examiners'
Education Foundation under this subsection (11) on or
after June 30, 1986, shall be either (i) promptly paid
after receipt of the same, accompanied by a detailed
statement thereof, into the State Treasury and shall be
set apart in a special fund to be known as "The
Illinois Bank Examiners' Education Fund" to be
invested by either the Treasurer of the State of
Illinois in the Public Treasurers' Investment Pool or
in any other investment he is authorized to make or by
the Illinois State Board of Investment as the State
Banking Board of Illinois may direct or (ii) deposited
into an account maintained in a commercial bank or
corporate fiduciary in the name of the Illinois Bank
Examiners' Education Foundation pursuant to the order
and direction of the Board of Trustees of the Illinois
Bank Examiners' Education Foundation.
(12) (Blank).
(13) The Secretary may borrow funds from the General
Revenue Fund on behalf of the Bank and Trust Company Fund
if the Director of Banking certifies to the Governor that
there is an economic emergency affecting banking that
requires a borrowing to provide additional funds to the
Bank and Trust Company Fund. The borrowed funds shall be
paid back within 3 years and shall not exceed the total
funding appropriated to the Agency in the previous year.
(14) In addition to the fees authorized in this Act,
the Secretary may assess reasonable receivership fees
against any State bank that does not maintain insurance
with the Federal Deposit Insurance Corporation. All fees
collected under this subsection (14) shall be paid into the
Non-insured Institutions Receivership account in the Bank
and Trust Company Fund, as established by the Secretary.
The fees assessed under this subsection (14) shall provide
for the expenses that arise from the administration of the
receivership of any such institution required to pay into
the Non-insured Institutions Receivership account, whether
pursuant to this Act, the Corporate Fiduciary Act, the
Foreign Banking Office Act, or any other Act that requires
payments into the Non-insured Institutions Receivership
account. The Secretary may establish by rule a reasonable
manner of assessing fees under this subsection (14).
(Source: P.A. 98-784, eff. 7-24-14; 99-39, eff. 1-1-16.)
(205 ILCS 5/48.1) (from Ch. 17, par. 360)
Sec. 48.1. Customer financial records; confidentiality.
(a) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of:
(1) a document granting signature authority over a
deposit or account;
(2) a statement, ledger card or other record on any
deposit or account, which shows each transaction in or with
respect to that account;
(3) a check, draft or money order drawn on a bank or
issued and payable by a bank; or
(4) any other item containing information pertaining
to any relationship established in the ordinary course of a
bank's business between a bank and its customer, including
financial statements or other financial information
provided by the customer.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a bank having custody of the records,
or the examination of the records by a certified public
accountant engaged by the bank to perform an independent
audit.
(2) The examination of any financial records by, or the
furnishing of financial records by a bank to, any officer,
employee or agent of (i) the Commissioner of Banks and Real
Estate, (ii) after May 31, 1997, a state regulatory
authority authorized to examine a branch of a State bank
located in another state, (iii) the Comptroller of the
Currency, (iv) the Federal Reserve Board, or (v) the
Federal Deposit Insurance Corporation for use solely in the
exercise of his duties as an officer, employee, or agent.
(3) The publication of data furnished from financial
records relating to customers where the data cannot be
identified to any particular customer or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a bank and other banks or
financial institutions or commercial enterprises, directly
or through a consumer reporting agency or (ii) financial
records or information derived from financial records
between a bank and other banks or financial institutions or
commercial enterprises for the purpose of conducting due
diligence pursuant to a purchase or sale involving the bank
or assets or liabilities of the bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the bank reasonably
believes it has been the victim of a crime.
(8) The furnishing of information under the Revised
Uniform Disposition of Unclaimed Property Act.
(9) The furnishing of information under the Illinois
Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information under the federal
Currency and Foreign Transactions Reporting Act Title 31,
United States Code, Section 1051 et seq.
(11) The furnishing of information under any other
statute that by its terms or by regulations promulgated
thereunder requires the disclosure of financial records
other than by subpoena, summons, warrant, or court order.
(12) The furnishing of information about the existence
of an account of a person to a judgment creditor of that
person who has made a written request for that information.
(13) The exchange in the regular course of business of
information between commonly owned banks in connection
with a transaction authorized under paragraph (23) of
Section 5 and conducted at an affiliate facility.
(14) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any bank governed by this Act
shall enter into an agreement for data exchanges with a
State agency provided the State agency pays to the bank a
reasonable fee not to exceed its actual cost incurred. A
bank providing information in accordance with this item
shall not be liable to any account holder or other person
for any disclosure of information to a State agency, for
encumbering or surrendering any assets held by the bank in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or
willful misconduct. A bank shall have no obligation to
hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(15) The exchange in the regular course of business of
information between a bank and any commonly owned affiliate
of the bank, subject to the provisions of the Financial
Institutions Insurance Sales Law.
(16) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the investigatory
entity or the guardian, or (ii) if there is suspicion by
the bank that a customer who is an elderly person or person
with a disability has been or may become the victim of
financial exploitation. For the purposes of this item (16),
the term: (i) "elderly person" means a person who is 60 or
more years of age, (ii) "disabled person" means a person
who has or reasonably appears to the bank to have a
physical or mental disability that impairs his or her
ability to seek or obtain protection from or prevent
financial exploitation, and (iii) "financial exploitation"
means tortious or illegal use of the assets or resources of
an elderly or disabled person, and includes, without
limitation, misappropriation of the elderly or disabled
person's assets or resources by undue influence, breach of
fiduciary relationship, intimidation, fraud, deception,
extortion, or the use of assets or resources in any manner
contrary to law. A bank or person furnishing information
pursuant to this item (16) shall be entitled to the same
rights and protections as a person furnishing information
under the Adult Protective Services Act and the Illinois
Domestic Violence Act of 1986.
(17) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the customer, or
in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the customer;
(B) maintaining or servicing a customer's account
with the bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a customer.
Nothing in this item (17), however, authorizes the sale
of the financial records or information of a customer
without the consent of the customer.
(18) The disclosure of financial records or
information as necessary to protect against actual or
potential fraud, unauthorized transactions, claims, or
other liability.
(19)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this paragraph (19) of
subsection (b) of Section 48.1, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private label
party primarily for payment for goods or services sold,
manufactured, or distributed by a private label party.
(2) For purposes of this paragraph (19) of subsection
(b) of Section 48.1, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(c) Except as otherwise provided by this Act, a bank may
not disclose to any person, except to the customer or his duly
authorized agent, any financial records or financial
information obtained from financial records relating to that
customer of that bank unless:
(1) the customer has authorized disclosure to the
person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order which meets the requirements of
subsection (d) of this Section; or
(3) the bank is attempting to collect an obligation
owed to the bank and the bank complies with the provisions
of Section 2I of the Consumer Fraud and Deceptive Business
Practices Act.
(d) A bank shall disclose financial records under paragraph
(2) of subsection (c) of this Section under a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the bank mails a copy of the subpoena, summons,
warrant, citation to discover assets, or court order to the
person establishing the relationship with the bank, if living,
and, otherwise his personal representative, if known, at his
last known address by first class mail, postage prepaid, unless
the bank is specifically prohibited from notifying the person
by order of court or by applicable State or federal law. A bank
shall not mail a copy of a subpoena to any person pursuant to
this subsection if the subpoena was issued by a grand jury
under the Statewide Grand Jury Act.
(e) Any officer or employee of a bank who knowingly and
willfully furnishes financial records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
(f) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a bank to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(g) A bank shall be reimbursed for costs that are
reasonably necessary and that have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data of a customer required or requested to
be produced pursuant to a lawful subpoena, summons, warrant,
citation to discover assets, or court order. The Commissioner
shall determine the rates and conditions under which payment
may be made.
(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15.)
(205 ILCS 5/48.3) (from Ch. 17, par. 360.2)
Sec. 48.3. Disclosure of reports of examinations and
confidential supervisory information; limitations.
(a) Any report of examination, visitation, or
investigation prepared by the Commissioner under this Act, the
Electronic Fund Transfer Act, the Corporate Fiduciary Act, the
Illinois Bank Holding Company Act of 1957, and the Foreign
Banking Office Act, any report of examination, visitation, or
investigation prepared by the state regulatory authority of
another state that examines a branch of an Illinois State bank
in that state, any document or record prepared or obtained in
connection with or relating to any examination, visitation, or
investigation, and any record prepared or obtained by the
Commissioner to the extent that the record summarizes or
contains information derived from any report, document, or
record described in this subsection shall be deemed
"confidential supervisory information". Confidential
supervisory information shall not include any information or
record routinely prepared by a bank or other financial
institution and maintained in the ordinary course of business
or any information or record that is required to be made
publicly available pursuant to State or federal law or rule.
Confidential supervisory information shall be the property of
the Commissioner and shall only be disclosed under the
circumstances and for the purposes set forth in this Section.
The Commissioner may disclose confidential supervisory
information only under the following circumstances:
(1) The Commissioner may furnish confidential
supervisory information to the Board of Governors of the
Federal Reserve System, the federal reserve bank of the
federal reserve district in which the State bank is located
or in which the parent or other affiliate of the State bank
is located, any official or examiner thereof duly
accredited for the purpose, or any other state regulator,
federal regulator, or in the case of a foreign bank
possessing a certificate of authority pursuant to the
Foreign Banking Office Act or a license pursuant to the
Foreign Bank Representative Office Act, the bank regulator
in the country where the foreign bank is chartered, that
the Commissioner determines to have an appropriate
regulatory interest. Nothing contained in this Act shall be
construed to limit the obligation of any member State bank
to comply with the requirements relative to examinations
and reports of the Federal Reserve Act and of the Board of
Governors of the Federal Reserve System or the federal
reserve bank of the federal reserve district in which the
bank is located, nor to limit in any way the powers of the
Commissioner with reference to examinations and reports.
(2) The Commissioner may furnish confidential
supervisory information to the United States, any agency
thereof that has insured a bank's deposits in whole or in
part, or any official or examiner thereof duly accredited
for the purpose. Nothing contained in this Act shall be
construed to limit the obligation relative to examinations
and reports of any State bank, deposits in which are to any
extent insured by the United States, any agency thereof,
nor to limit in any way the powers of the Commissioner with
reference to examination and reports of such bank.
(3) The Commissioner may furnish confidential
supervisory information to the appropriate law enforcement
authorities when the Commissioner reasonably believes a
bank, which the Commissioner has caused to be examined, has
been a victim of a crime.
(4) The Commissioner may furnish confidential
supervisory information relating to a bank or other
financial institution, which the Commissioner has caused
to be examined, to be sent to the administrator of the
Revised Uniform Disposition of Unclaimed Property Act.
(5) The Commissioner may furnish confidential
supervisory information relating to a bank or other
financial institution, which the Commissioner has caused
to be examined, relating to its performance of obligations
under the Illinois Income Tax Act and the Illinois Estate
and Generation-Skipping Transfer Tax Act to the Illinois
Department of Revenue.
(6) The Commissioner may furnish confidential
supervisory information relating to a bank or other
financial institution, which the Commissioner has caused
to be examined, under the federal Currency and Foreign
Transactions Reporting Act, Title 31, United States Code,
Section 1051 et seq.
(6.5) The Commissioner may furnish confidential
supervisory information to any other agency or entity that
the Commissioner determines to have a legitimate
regulatory interest.
(7) The Commissioner may furnish confidential
supervisory information under any other statute that by its
terms or by regulations promulgated thereunder requires
the disclosure of financial records other than by subpoena,
summons, warrant, or court order.
(8) At the request of the affected bank or other
financial institution, the Commissioner may furnish
confidential supervisory information relating to a bank or
other financial institution, which the Commissioner has
caused to be examined, in connection with the obtaining of
insurance coverage or the pursuit of an insurance claim for
or on behalf of the bank or other financial institution;
provided that, when possible, the Commissioner shall
disclose only relevant information while maintaining the
confidentiality of financial records not relevant to such
insurance coverage or claim and, when appropriate, may
delete identifying data relating to any person or
individual.
(9) The Commissioner may furnish a copy of a report of
any examination performed by the Commissioner of the
condition and affairs of any electronic data processing
entity to the banks serviced by the electronic data
processing entity.
(10) In addition to the foregoing circumstances, the
Commissioner may, but is not required to, furnish
confidential supervisory information under the same
circumstances authorized for the bank or financial
institution pursuant to subsection (b) of this Section,
except that the Commissioner shall provide confidential
supervisory information under circumstances described in
paragraph (3) of subsection (b) of this Section only upon
the request of the bank or other financial institution.
(b) A bank or other financial institution or its officers,
agents, and employees may disclose confidential supervisory
information only under the following circumstances:
(1) to the board of directors of the bank or other
financial institution, as well as the president,
vice-president, cashier, and other officers of the bank or
other financial institution to whom the board of directors
may delegate duties with respect to compliance with
recommendations for action, and to the board of directors
of a bank holding company that owns at least 80% of the
outstanding stock of the bank or other financial
institution;
(2) to attorneys for the bank or other financial
institution and to a certified public accountant engaged by
the State bank or financial institution to perform an
independent audit provided that the attorney or certified
public accountant shall not permit the confidential
supervisory information to be further disseminated;
(3) to any person who seeks to acquire a controlling
interest in, or who seeks to merge with, the bank or
financial institution, provided that all attorneys,
certified public accountants, officers, agents, or
employees of that person shall agree to be bound to respect
the confidentiality of the confidential supervisory
information and to not further disseminate the information
therein contained;
(4) (blank); or
(5) to the bank's insurance company in relation to an
insurance claim or the effort by the bank to procure
insurance coverage, provided that, when possible, the bank
shall disclose only information that is relevant to the
insurance claim or that is necessary to procure the
insurance coverage, while maintaining the confidentiality
of financial information pertaining to customers. When
appropriate, the bank may delete identifying data relating
to any person.
The disclosure of confidential supervisory information by
a bank or other financial institution pursuant to this
subsection (b) and the disclosure of information to the
Commissioner or other regulatory agency in connection with any
examination, visitation, or investigation shall not constitute
a waiver of any legal privilege otherwise available to the bank
or other financial institution with respect to the information.
(c) (1) Notwithstanding any other provision of this Act or
any other law, confidential supervisory information shall be
the property of the Commissioner and shall be privileged from
disclosure to any person except as provided in this Section. No
person in possession of confidential supervisory information
may disclose that information for any reason or under any
circumstances not specified in this Section without the prior
authorization of the Commissioner. Any person upon whom a
demand for production of confidential supervisory information
is made, whether by subpoena, order, or other judicial or
administrative process, must withhold production of the
confidential supervisory information and must notify the
Commissioner of the demand, at which time the Commissioner is
authorized to intervene for the purpose of enforcing the
limitations of this Section or seeking the withdrawal or
termination of the attempt to compel production of the
confidential supervisory information.
(2) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or other
judicial or administrative process, shall be made to the
Commissioner, and the Commissioner shall determine within 15
days whether to disclose the information pursuant to procedures
and standards that the Commissioner shall establish by rule. If
the Commissioner determines that such information will not be
disclosed, the Commissioner's decision shall be subject to
judicial review under the provisions of the Administrative
Review Law, and venue shall be in either Sangamon County or
Cook County.
(3) Any court order that compels disclosure of confidential
supervisory information may be immediately appealed by the
Commissioner, and the order shall be automatically stayed
pending the outcome of the appeal.
(d) If any officer, agent, attorney, or employee of a bank
or financial institution knowingly and willfully furnishes
confidential supervisory information in violation of this
Section, the Commissioner may impose a civil monetary penalty
up to $1,000 for the violation against the officer, agent,
attorney, or employee.
(Source: P.A. 90-301, eff. 8-1-97; 91-201, eff. 1-1-00.)
(205 ILCS 5/65) (from Ch. 17, par. 377)
Sec. 65. Dividends; dissolution. From time to time during a
receivership other than a receivership conducted by the Federal
Deposit Insurance Corporation, the Commissioner shall make and
pay from monies of the bank a ratable dividend on all claims as
may be proved to his or her satisfaction or adjudicated by the
court. Claims so proven or adjudicated shall bear interest at
the rate of 3% per annum from the date of the appointment of
the receiver to the date of payment, but all dividends on a
claim shall be applied first to principal. In computing the
amount of any dividend to be paid, if the Commissioner deems it
desirable in the interests of economy of administration and to
the interest of the bank and its creditors, he or she may pay
up to the amount of $10 of each claim or unpaid portion thereof
in full. As the proceeds of the assets of the bank are
collected in the course of liquidation, the Commissioner shall
make and pay further dividends on all claims previously proven
or adjudicated. After one year from the entry of a judgment of
dissolution, all unclaimed dividends shall be remitted to the
State Treasurer in accordance with the Revised Uniform
Unclaimed Property Act "Uniform Disposition of Unclaimed
Property Act", as now or hereafter amended, together with a
list of all unpaid claimants, their last known addresses and
the amounts unpaid.
(Source: P.A. 91-16, eff. 7-1-99.)
Section 17-55. The Savings Bank Act is amended by changing
Sections 4013, 9012, and 10090 as follows:
(205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
Sec. 4013. Access to books and records; communication with
members and shareholders.
(a) Every member or shareholder shall have the right to
inspect books and records of the savings bank that pertain to
his accounts. Otherwise, the right of inspection and
examination of the books and records shall be limited as
provided in this Act, and no other person shall have access to
the books and records nor shall be entitled to a list of the
members or shareholders.
(b) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (1) a
document granting signature authority over a deposit or
account; (2) a statement, ledger card, or other record on any
deposit or account that shows each transaction in or with
respect to that account; (3) a check, draft, or money order
drawn on a savings bank or issued and payable by a savings
bank; or (4) any other item containing information pertaining
to any relationship established in the ordinary course of a
savings bank's business between a savings bank and its
customer, including financial statements or other financial
information provided by the member or shareholder.
(c) This Section does not prohibit:
(1) The preparation, examination, handling, or
maintenance of any financial records by any officer,
employee, or agent of a savings bank having custody of
records or examination of records by a certified public
accountant engaged by the savings bank to perform an
independent audit.
(2) The examination of any financial records by, or the
furnishing of financial records by a savings bank to, any
officer, employee, or agent of the Commissioner of Banks
and Real Estate or the federal depository institution
regulator for use solely in the exercise of his duties as
an officer, employee, or agent.
(3) The publication of data furnished from financial
records relating to members or holders of capital where the
data cannot be identified to any particular member,
shareholder, or account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1986.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a savings bank and other
savings banks or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a savings bank and other
savings banks or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a purchase or sale involving the savings bank
or assets or liabilities of the savings bank.
(7) The furnishing of information to the appropriate
law enforcement authorities where the savings bank
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Revised Uniform Disposition of Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal "Currency and Foreign Transactions Reporting Act",
(Title 31, United States Code, Section 1051 et seq.).
(11) The furnishing of information pursuant to any
other statute which by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons,
warrant, or court order.
(12) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any savings bank governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
savings bank a reasonable fee not to exceed its actual cost
incurred. A savings bank providing information in
accordance with this item shall not be liable to any
account holder or other person for any disclosure of
information to a State agency, for encumbering or
surrendering any assets held by the savings bank in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or
willful misconduct. A savings bank shall have no obligation
to hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(13) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the investigatory
entity or the guardian, or (ii) if there is suspicion by
the savings bank that a customer who is an elderly person
or person with a disability has been or may become the
victim of financial exploitation. For the purposes of this
item (13), the term: (i) "elderly person" means a person
who is 60 or more years of age, (ii) "person with a
disability" means a person who has or reasonably appears to
the savings bank to have a physical or mental disability
that impairs his or her ability to seek or obtain
protection from or prevent financial exploitation, and
(iii) "financial exploitation" means tortious or illegal
use of the assets or resources of an elderly person or
person with a disability, and includes, without
limitation, misappropriation of the assets or resources of
the elderly person or person with a disability by undue
influence, breach of fiduciary relationship, intimidation,
fraud, deception, extortion, or the use of assets or
resources in any manner contrary to law. A savings bank or
person furnishing information pursuant to this item (13)
shall be entitled to the same rights and protections as a
person furnishing information under the Adult Protective
Services Act and the Illinois Domestic Violence Act of
1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member or
holder of capital, or in connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member or holder
of capital;
(B) maintaining or servicing an account of a member
or holder of capital with the savings bank; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member or holder
of capital.
Nothing in this item (14), however, authorizes the sale
of the financial records or information of a member or
holder of capital without the consent of the member or
holder of capital.
(15) The exchange in the regular course of business of
information between a savings bank and any commonly owned
affiliate of the savings bank, subject to the provisions of
the Financial Institutions Insurance Sales Law.
(16) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(17)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this paragraph (17) of
subsection (c) of Section 4013, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private label
party primarily for payment for goods or services sold,
manufactured, or distributed by a private label party.
(2) For purposes of this paragraph (17) of subsection
(c) of Section 4013, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(d) A savings bank may not disclose to any person, except
to the member or holder of capital or his duly authorized
agent, any financial records relating to that member or
shareholder of the savings bank unless:
(1) the member or shareholder has authorized
disclosure to the person; or
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order that meets the requirements of
subsection (e) of this Section.
(e) A savings bank shall disclose financial records under
subsection (d) of this Section pursuant to a lawful subpoena,
summons, warrant, citation to discover assets, or court order
only after the savings bank mails a copy of the subpoena,
summons, warrant, citation to discover assets, or court order
to the person establishing the relationship with the savings
bank, if living, and otherwise, his personal representative, if
known, at his last known address by first class mail, postage
prepaid, unless the savings bank is specifically prohibited
from notifying the person by order of court.
(f) Any officer or employee of a savings bank who knowingly
and willfully furnishes financial records in violation of this
Section is guilty of a business offense and, upon conviction,
shall be fined not more than $1,000.
(g) Any person who knowingly and willfully induces or
attempts to induce any officer or employee of a savings bank to
disclose financial records in violation of this Section is
guilty of a business offense and, upon conviction, shall be
fined not more than $1,000.
(h) If any member or shareholder desires to communicate
with the other members or shareholders of the savings bank with
reference to any question pending or to be presented at an
annual or special meeting, the savings bank shall give that
person, upon request, a statement of the approximate number of
members or shareholders entitled to vote at the meeting and an
estimate of the cost of preparing and mailing the
communication. The requesting member shall submit the
communication to the Commissioner who, upon finding it to be
appropriate and truthful, shall direct that it be prepared and
mailed to the members upon the requesting member's or
shareholder's payment or adequate provision for payment of the
expenses of preparation and mailing.
(i) A savings bank shall be reimbursed for costs that are
necessary and that have been directly incurred in searching
for, reproducing, or transporting books, papers, records, or
other data of a customer required to be reproduced pursuant to
a lawful subpoena, warrant, citation to discover assets, or
court order.
(j) Notwithstanding the provisions of this Section, a
savings bank may sell or otherwise make use of lists of
customers' names and addresses. All other information
regarding a customer's account is are subject to the disclosure
provisions of this Section. At the request of any customer,
that customer's name and address shall be deleted from any list
that is to be sold or used in any other manner beyond
identification of the customer's accounts.
(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15; revised
9-14-16.)
(205 ILCS 205/9012) (from Ch. 17, par. 7309-12)
Sec. 9012. Disclosure of reports of examinations and
confidential supervisory information; limitations.
(a) Any report of examination, visitation, or
investigation prepared by the Commissioner under this Act, any
report of examination, visitation, or investigation prepared
by the state regulatory authority of another state that
examines a branch of an Illinois State savings bank in that
state, any document or record prepared or obtained in
connection with or relating to any examination, visitation, or
investigation, and any record prepared or obtained by the
Commissioner to the extent that the record summarizes or
contains information derived from any report, document, or
record described in this subsection shall be deemed
confidential supervisory information. "Confidential
supervisory information" shall not include any information or
record routinely prepared by a savings bank and maintained in
the ordinary course of business or any information or record
that is required to be made publicly available pursuant to
State or federal law or rule. Confidential supervisory
information shall be the property of the Commissioner and shall
only be disclosed under the circumstances and for the purposes
set forth in this Section.
The Commissioner may disclose confidential supervisory
information only under the following circumstances:
(1) The Commissioner may furnish confidential
supervisory information to federal and state depository
institution regulators, or any official or examiner
thereof duly accredited for the purpose. Nothing contained
in this Act shall be construed to limit the obligation of
any savings bank to comply with the requirements relative
to examinations and reports nor to limit in any way the
powers of the Commissioner relative to examinations and
reports.
(2) The Commissioner may furnish confidential
supervisory information to the United States or any agency
thereof that to any extent has insured a savings bank's
deposits, or any official or examiner thereof duly
accredited for the purpose. Nothing contained in this Act
shall be construed to limit the obligation relative to
examinations and reports of any savings bank in which
deposits are to any extent insured by the United States or
any agency thereof nor to limit in any way the powers of
the Commissioner with reference to examination and reports
of the savings bank.
(3) The Commissioner may furnish confidential
supervisory information to the appropriate law enforcement
authorities when the Commissioner reasonably believes a
savings bank, which the Commissioner has caused to be
examined, has been a victim of a crime.
(4) The Commissioner may furnish confidential
supervisory information related to a savings bank, which
the Commissioner has caused to be examined, to the
administrator of the Revised Uniform Disposition of
Unclaimed Property Act.
(5) The Commissioner may furnish confidential
supervisory information relating to a savings bank, which
the Commissioner has caused to be examined, relating to its
performance of obligations under the Illinois Income Tax
Act and the Illinois Estate and Generation-Skipping
Transfer Tax Act to the Illinois Department of Revenue.
(6) The Commissioner may furnish confidential
supervisory information relating to a savings bank, which
the Commissioner has caused to be examined, under the
federal Currency and Foreign Transactions Reporting Act,
31 United States Code, Section 1051 et seq.
(7) The Commissioner may furnish confidential
supervisory information to any other agency or entity that
the Commissioner determines to have a legitimate
regulatory interest.
(8) The Commissioner may furnish confidential
supervisory information as otherwise permitted or required
by this Act and may furnish confidential supervisory
information under any other statute that by its terms or by
regulations promulgated thereunder requires the disclosure
of financial records other than by subpoena, summons,
warrant, or court order.
(9) At the request of the affected savings bank, the
Commissioner may furnish confidential supervisory
information relating to the savings bank, which the
Commissioner has caused to be examined, in connection with
the obtaining of insurance coverage or the pursuit of an
insurance claim for or on behalf of the savings bank;
provided that, when possible, the Commissioner shall
disclose only relevant information while maintaining the
confidentiality of financial records not relevant to such
insurance coverage or claim and, when appropriate, may
delete identifying data relating to any person.
(10) The Commissioner may furnish a copy of a report of
any examination performed by the Commissioner of the
condition and affairs of any electronic data processing
entity to the savings banks serviced by the electronic data
processing entity.
(11) In addition to the foregoing circumstances, the
Commissioner may, but is not required to, furnish
confidential supervisory information under the same
circumstances authorized for the savings bank pursuant to
subsection (b) of this Section, except that the
Commissioner shall provide confidential supervisory
information under circumstances described in paragraph (3)
of subsection (b) of this Section only upon the request of
the savings bank.
(b) A savings bank or its officers, agents, and employees
may disclose confidential supervisory information only under
the following circumstances:
(1) to the board of directors of the savings bank, as
well as the president, vice-president, cashier, and other
officers of the savings bank to whom the board of directors
may delegate duties with respect to compliance with
recommendations for action, and to the board of directors
of a savings bank holding company that owns at least 80% of
the outstanding stock of the savings bank or other
financial institution.
(2) to attorneys for the savings bank and to a
certified public accountant engaged by the savings bank to
perform an independent audit; provided that the attorney or
certified public accountant shall not permit the
confidential supervisory information to be further
disseminated.
(3) to any person who seeks to acquire a controlling
interest in, or who seeks to merge with, the savings bank;
provided that the person shall agree to be bound to respect
the confidentiality of the confidential supervisory
information and to not further disseminate the information
other than to attorneys, certified public accountants,
officers, agents, or employees of that person who likewise
shall agree to be bound to respect the confidentiality of
the confidential supervisory information and to not
further disseminate the information.
(4) to the savings bank's insurance company, if the
supervisory information contains information that is
otherwise unavailable and is strictly necessary to
obtaining insurance coverage or pursuing an insurance
claim for or on behalf of the savings bank; provided that,
when possible, the savings bank shall disclose only
information that is relevant to obtaining insurance
coverage or pursuing an insurance claim, while maintaining
the confidentiality of financial information pertaining to
customers; and provided further that, when appropriate,
the savings bank may delete identifying data relating to
any person.
The disclosure of confidential supervisory information by
a savings bank pursuant to this subsection (b) and the
disclosure of information to the Commissioner or other
regulatory agency in connection with any examination,
visitation, or investigation shall not constitute a waiver of
any legal privilege otherwise available to the savings bank
with respect to the information.
(c) (1) Notwithstanding any other provision of this Act or
any other law, confidential supervisory information shall be
the property of the Commissioner and shall be privileged from
disclosure to any person except as provided in this Section. No
person in possession of confidential supervisory information
may disclose that information for any reason or under any
circumstances not specified in this Section without the prior
authorization of the Commissioner. Any person upon whom a
demand for production of confidential supervisory information
is made, whether by subpoena, order, or other judicial or
administrative process, must withhold production of the
confidential supervisory information and must notify the
Commissioner of the demand, at which time the Commissioner is
authorized to intervene for the purpose of enforcing the
limitations of this Section or seeking the withdrawal or
termination of the attempt to compel production of the
confidential supervisory information.
(2) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or other
judicial or administrative process, shall be made to the
Commissioner, and the Commissioner shall determine within 15
days whether to disclose the information pursuant to procedures
and standards that the Commissioner shall establish by rule. If
the Commissioner determines that such information will not be
disclosed, the Commissioner's decision shall be subject to
judicial review under the provisions of the Administrative
Review Law, and venue shall be in either Sangamon County or
Cook County.
(3) Any court order that compels disclosure of confidential
supervisory information may be immediately appealed by the
Commissioner, and the order shall be automatically stayed
pending the outcome of the appeal.
(d) If any officer, agent, attorney, or employee of a
savings bank knowingly and willfully furnishes confidential
supervisory information in violation of this Section, the
Commissioner may impose a civil monetary penalty up to $1,000
for the violation against the officer, agent, attorney, or
employee.
(e) Subject to the limits of this Section, the
Commissioner also may promulgate regulations to set procedures
and standards for disclosure of the following items:
(1) All fixed orders and opinions made in cases of
appeals of the Commissioner's actions.
(2) Statements of policy and interpretations adopted
by the Commissioner's office, but not otherwise made
public.
(3) Nonconfidential portions of application files,
including applications for new charters. The Commissioner
shall specify by rule as to what part of the files are
confidential.
(4) Quarterly reports of income, deposits, and
financial condition.
(Source: P.A. 93-271, eff. 7-22-03.)
(205 ILCS 205/10090)
Sec. 10090. Dividends; dissolution. From time to time
during a receivership other than a receivership conducted by
the Federal Deposit Insurance Corporation, the Secretary shall
make and pay from moneys of the savings bank a ratable dividend
on all claims as may be proved to his or her satisfaction or
adjudicated by the court. Claims so proven or adjudicated shall
bear interest at the rate of 3% per annum from the date of the
appointment of the receiver to the date of payment, but all
dividends on a claim shall be applied first to principal. In
computing the amount of any dividend to be paid, if the
Secretary deems it desirable in the interests of economy of
administration and to the interest of the savings bank and its
creditors, he or she may pay up to the amount of $10 of each
claim or unpaid portion thereof in full. As the proceeds of the
assets of the savings bank are collected in the course of
liquidation, the Secretary shall make and pay further dividends
on all claims previously proven or adjudicated. After one year
from the entry of a judgment of dissolution, all unclaimed
dividends shall be remitted to the State Treasurer in
accordance with the Revised Uniform Disposition of Unclaimed
Property Act, as now or hereafter amended, together with a list
of all unpaid claimants, their last known addresses and the
amounts unpaid.
(Source: P.A. 96-1365, eff. 7-28-10.)
Section 17-60. The Illinois Credit Union Act is amended by
changing Sections 10 and 62 as follows:
(205 ILCS 305/10) (from Ch. 17, par. 4411)
Sec. 10. Credit union records; member financial records.
(1) A credit union shall establish and maintain books,
records, accounting systems and procedures which accurately
reflect its operations and which enable the Department to
readily ascertain the true financial condition of the credit
union and whether it is complying with this Act.
(2) A photostatic or photographic reproduction of any
credit union records shall be admissible as evidence of
transactions with the credit union.
(3)(a) For the purpose of this Section, the term "financial
records" means any original, any copy, or any summary of (1) a
document granting signature authority over an account, (2) a
statement, ledger card or other record on any account which
shows each transaction in or with respect to that account, (3)
a check, draft or money order drawn on a financial institution
or other entity or issued and payable by or through a financial
institution or other entity, or (4) any other item containing
information pertaining to any relationship established in the
ordinary course of business between a credit union and its
member, including financial statements or other financial
information provided by the member.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a credit union having custody of such
records, or the examination of such records by a certified
public accountant engaged by the credit union to perform an
independent audit.
(2) The examination of any financial records by or the
furnishing of financial records by a credit union to any
officer, employee or agent of the Department, the National
Credit Union Administration, Federal Reserve board or any
insurer of share accounts for use solely in the exercise of
his duties as an officer, employee or agent.
(3) The publication of data furnished from financial
records relating to members where the data cannot be
identified to any particular customer of account.
(4) The making of reports or returns required under
Chapter 61 of the Internal Revenue Code of 1954.
(5) Furnishing information concerning the dishonor of
any negotiable instrument permitted to be disclosed under
the Uniform Commercial Code.
(6) The exchange in the regular course of business of
(i) credit information between a credit union and other
credit unions or financial institutions or commercial
enterprises, directly or through a consumer reporting
agency or (ii) financial records or information derived
from financial records between a credit union and other
credit unions or financial institutions or commercial
enterprises for the purpose of conducting due diligence
pursuant to a merger or a purchase or sale of assets or
liabilities of the credit union.
(7) The furnishing of information to the appropriate
law enforcement authorities where the credit union
reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the
Revised Uniform Disposition of Unclaimed Property Act.
(9) The furnishing of information pursuant to the
Illinois Income Tax Act and the Illinois Estate and
Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the
federal "Currency and Foreign Transactions Reporting Act",
Title 31, United States Code, Section 1051 et sequentia.
(11) The furnishing of information pursuant to any
other statute which by its terms or by regulations
promulgated thereunder requires the disclosure of
financial records other than by subpoena, summons, warrant
or court order.
(12) The furnishing of information in accordance with
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. Any credit union governed by
this Act shall enter into an agreement for data exchanges
with a State agency provided the State agency pays to the
credit union a reasonable fee not to exceed its actual cost
incurred. A credit union providing information in
accordance with this item shall not be liable to any
account holder or other person for any disclosure of
information to a State agency, for encumbering or
surrendering any assets held by the credit union in
response to a lien or order to withhold and deliver issued
by a State agency, or for any other action taken pursuant
to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or
willful misconduct. A credit union shall have no obligation
to hold, encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(13) The furnishing of information to law enforcement
authorities, the Illinois Department on Aging and its
regional administrative and provider agencies, the
Department of Human Services Office of Inspector General,
or public guardians: (i) upon subpoena by the investigatory
entity or the guardian, or (ii) if there is suspicion by
the credit union that a member who is an elderly person or
person with a disability has been or may become the victim
of financial exploitation. For the purposes of this item
(13), the term: (i) "elderly person" means a person who is
60 or more years of age, (ii) "person with a disability"
means a person who has or reasonably appears to the credit
union to have a physical or mental disability that impairs
his or her ability to seek or obtain protection from or
prevent financial exploitation, and (iii) "financial
exploitation" means tortious or illegal use of the assets
or resources of an elderly person or person with a
disability, and includes, without limitation,
misappropriation of the elderly or disabled person's
assets or resources by undue influence, breach of fiduciary
relationship, intimidation, fraud, deception, extortion,
or the use of assets or resources in any manner contrary to
law. A credit union or person furnishing information
pursuant to this item (13) shall be entitled to the same
rights and protections as a person furnishing information
under the Adult Protective Services Act and the Illinois
Domestic Violence Act of 1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or enforce
a transaction requested or authorized by the member, or in
connection with:
(A) servicing or processing a financial product or
service requested or authorized by the member;
(B) maintaining or servicing a member's account
with the credit union; or
(C) a proposed or actual securitization or
secondary market sale (including sales of servicing
rights) related to a transaction of a member.
Nothing in this item (14), however, authorizes the sale
of the financial records or information of a member without
the consent of the member.
(15) The disclosure of financial records or
information as necessary to protect against or prevent
actual or potential fraud, unauthorized transactions,
claims, or other liability.
(16)(a) The disclosure of financial records or
information related to a private label credit program
between a financial institution and a private label party
in connection with that private label credit program. Such
information is limited to outstanding balance, available
credit, payment and performance and account history,
product references, purchase information, and information
related to the identity of the customer.
(b)(1) For purposes of this paragraph (16) of
subsection (b) of Section 10, a "private label credit
program" means a credit program involving a financial
institution and a private label party that is used by a
customer of the financial institution and the private label
party primarily for payment for goods or services sold,
manufactured, or distributed by a private label party.
(2) For purposes of this paragraph (16) of subsection
(b) of Section 10, a "private label party" means, with
respect to a private label credit program, any of the
following: a retailer, a merchant, a manufacturer, a trade
group, or any such person's affiliate, subsidiary, member,
agent, or service provider.
(c) Except as otherwise provided by this Act, a credit
union may not disclose to any person, except to the member or
his duly authorized agent, any financial records relating to
that member of the credit union unless:
(1) the member has authorized disclosure to the person;
(2) the financial records are disclosed in response to
a lawful subpoena, summons, warrant, citation to discover
assets, or court order that meets the requirements of
subparagraph (d) of this Section; or
(3) the credit union is attempting to collect an
obligation owed to the credit union and the credit union
complies with the provisions of Section 2I of the Consumer
Fraud and Deceptive Business Practices Act.
(d) A credit union shall disclose financial records under
subparagraph (c)(2) of this Section pursuant to a lawful
subpoena, summons, warrant, citation to discover assets, or
court order only after the credit union mails a copy of the
subpoena, summons, warrant, citation to discover assets, or
court order to the person establishing the relationship with
the credit union, if living, and otherwise his personal
representative, if known, at his last known address by first
class mail, postage prepaid unless the credit union is
specifically prohibited from notifying the person by order of
court or by applicable State or federal law. In the case of a
grand jury subpoena, a credit union shall not mail a copy of a
subpoena to any person pursuant to this subsection if the
subpoena was issued by a grand jury under the Statewide Grand
Jury Act or notifying the person would constitute a violation
of the federal Right to Financial Privacy Act of 1978.
(e)(1) Any officer or employee of a credit union who
knowingly and wilfully furnishes financial records in
violation of this Section is guilty of a business offense and
upon conviction thereof shall be fined not more than $1,000.
(2) Any person who knowingly and wilfully induces or
attempts to induce any officer or employee of a credit union to
disclose financial records in violation of this Section is
guilty of a business offense and upon conviction thereof shall
be fined not more than $1,000.
(f) A credit union shall be reimbursed for costs which are
reasonably necessary and which have been directly incurred in
searching for, reproducing or transporting books, papers,
records or other data of a member required or requested to be
produced pursuant to a lawful subpoena, summons, warrant,
citation to discover assets, or court order. The Secretary and
the Director may determine, by rule, the rates and conditions
under which payment shall be made. Delivery of requested
documents may be delayed until final reimbursement of all costs
is received.
(Source: P.A. 98-49, eff. 7-1-13; 99-143, eff. 7-27-15.)
(205 ILCS 305/62) (from Ch. 17, par. 4463)
Sec. 62. Liquidation.
(1) A credit union may elect to dissolve voluntarily and
liquidate its affairs in the manner prescribed in this Section.
(2) The board of directors shall adopt a resolution
recommending the credit union be dissolved voluntarily, and
directing that the question of liquidating be submitted to the
members.
(3) Within 10 days after the board of directors decides to
submit the question of liquidation to the members, the chairman
or president shall notify the Secretary thereof, in writing,
setting forth the reasons for the proposed action. Within 10
days after the members act on the question of liquidation, the
chairman or president shall notify the Secretary, in writing,
as to whether or not the members approved the proposed
liquidation. The Secretary then must determine whether this
Section has been complied with and if his decision is
favorable, he shall prepare a certificate to the effect that
this Section has been complied with, a copy of which will be
retained by the Department and the other copy forwarded to the
credit union. The certificate must be filed with the recorder
or if there is no recorder, in the office of the county clerk
of the county or counties in which the credit union is
operating, whereupon the credit union must cease operations
except for the purpose of its liquidation.
(4) As soon as the board of directors passes a resolution
to submit the question of liquidation to the members, payment
on shares, withdrawal of shares, making any transfer of shares
to loans and interest, making investments of any kind and
granting loans shall be suspended pending action by members. On
approval by the members of such proposal, all such operations
shall be permanently discontinued. The necessary expenses of
operating shall, however, continue to be paid on authorization
of the board of directors or the liquidating agent during the
period of liquidation.
(5) For a credit union to enter voluntary liquidation, it
must be approved by affirmative vote of the members owning a
majority of the shares entitled to vote, in person or by proxy,
at a regular or special meeting of the members. Notice, in
writing, shall be given to each member, by first class mail, at
least 10 days prior to such meeting. If liquidation is
approved, the board of directors shall appoint a liquidating
agent for the purpose of conserving and collecting the assets,
closing the affairs of the credit union and distributing the
assets as required by this Act.
(6) A liquidating credit union shall continue in existence
for the purpose of discharging its debts, collecting and
distributing its assets, and doing all acts required in order
to terminate its operations and may sue and be sued for the
purpose of enforcing such debts and obligations until its
affairs are fully adjusted.
(7) Subject to such rules and regulations as the Secretary
may promulgate, the liquidating agent shall use the assets of
the credit union to pay; first, expenses incidental to
liquidating including any surety bond that may be required;
then, liabilities of the credit union; then special classes of
shares. The remaining assets shall then be distributed to the
members proportionately to the dollar value of the shares held
by each member in relation to the total dollar value of all
shares outstanding as of the date the dissolution was voted.
(8) As soon as the liquidating agent determines that all
assets as to which there is a reasonable expectancy of sale or
transfer have been liquidated and distributed as set forth in
this Section, he shall execute a certificate of dissolution on
a form prescribed by the Department and file the same, together
with all pertinent books and records of the liquidating credit
union with the Department, whereupon such credit union shall be
dissolved. The liquidating agent must, within 3 years after
issuance of a certificate by the Secretary referred to in
Subsection (3) of this Section, discharge the debts of the
credit union, collect and distribute its assets and do all
other acts required to wind up its business.
(9) If the Secretary determines that the liquidating agent
has failed to make reasonable progress in the liquidating of
the credit union's affairs and distribution of its assets or
has violated this Act, the Secretary may take possession and
control of the credit union and remove the liquidating agent
and appoint a liquidating agent to complete the liquidation
under his direction and control. The Secretary shall fill any
vacancy caused by the resignation, death, illness, removal,
desertion or incapacity to function of the liquidating agent.
(10) Any funds representing unclaimed dividends and shares
in liquidation and remaining in the hands of the board of
directors or the liquidating agent at the end of the
liquidation must be deposited by them, together with all books
and papers of the credit union, with the State Treasurer in
compliance with the Revised Uniform Disposition of Unclaimed
Property Act, approved August 17, 1961, as amended.
(Source: P.A. 97-133, eff. 1-1-12.)
Section 17-65. The Currency Exchange Act is amended by
changing Sections 15.1b and 19.3 as follows:
(205 ILCS 405/15.1b) (from Ch. 17, par. 4827)
Sec. 15.1b. Liquidation; distribution; priority. The
General Assembly finds and declares that community currency
exchanges provide important and vital services to Illinois
citizens. The General Assembly also finds that in providing
such services, community currency exchanges transact extensive
business involving check cashing and the writing of money
orders in communities in which banking services are generally
unavailable. It is therefore declared to be the policy of this
State that customers who receive these services must be
protected from insolvencies of currency exchanges and
interruptions of services. To carry out this policy and to
insure that customers of community currency exchanges are
protected in the event it is determined that a community
currency exchange in receivership should be liquidated in
accordance with Section 15.1a of this Act, the Secretary shall
make a distribution of moneys collected by the receiver in the
following order of priority: First, allowed claims for the
actual necessary expenses of the receivership of the community
currency exchange being liquidated, including (a) reasonable
receiver fees and receiver's attorney's fees approved by the
Secretary, (b) all expenses of any preliminary or other
examinations into the condition of the community currency
exchange or receivership, (c) all expenses incurred by the
Secretary which are incident to possession and control of any
property or records of the community currency exchange, and (d)
reasonable expenses incurred by the Secretary as the result of
business agreements or contractual arrangements necessary to
insure that the services of the community currency exchanges
are delivered to the community without interruption. Said
business agreements or contractual arrangements may include,
but are not limited to, agreements made by the Secretary, or by
the Receiver with the approval of the Secretary, with banks,
money order companies, bonding companies and other types of
financial institutions; Second, allowed claims by a purchaser
of money orders issued on demand of the community currency
exchange being liquidated; Third, allowed claims arising by
virtue of and to the extent of the amount a utility customer
deposits with the community currency exchange being liquidated
which are not remitted to the utility company; Fourth, allowed
claims arising by virtue of and to the extent of the amount
paid by a purchaser of Illinois license plates, vehicle
stickers sold for State and municipal governments in Illinois,
and temporary Illinois registration permits purchased at the
currency exchange being liquidated; Fifth, allowed unsecured
claims for wages or salaries, excluding vacation, severance and
sick leave pay earned by employee earned within 90 days prior
to the appointment of a Receiver; Sixth, secured claims;
Seventh, allowed unsecured claims of any tax, and interest and
penalty on the tax; Eighth, allowed unsecured claims other than
a kind specified in paragraph one, two and three of this
Section, filed with the Secretary within the time the Secretary
fixes for filing claims; Ninth, allowed unsecured claims, other
than a kind specified in paragraphs one, two and three of this
Section filed with the Secretary after the time fixed for
filing claims by the Secretary; Tenth, allowed creditor claims
asserted by an owner, member, or stockholder of the community
currency exchange in liquidation; Eleventh, after one year from
the final dissolution of the currency exchange, all assets not
used to satisfy allowed claims shall be distributed pro rata to
the owner, owners, members, or stockholders of the currency
exchange.
The Secretary shall pay all claims of equal priority
according to the schedule set out above, and shall not pay
claims of lower priority until all higher priority claims are
satisfied. If insufficient assets are available to meet all
claims of equal priority, those assets shall be distributed pro
rata among those claims. All unclaimed assets of a currency
exchange shall be deposited with the Secretary to be paid out
by him when proper claims therefor are presented to the
Secretary. If there are funds remaining after the conclusion of
a receivership of an abandoned currency exchange, the remaining
funds shall be considered unclaimed property and remitted to
the State Treasurer under the Revised Uniform Disposition of
Unclaimed Property Act.
(Source: P.A. 97-315, eff. 1-1-12.)
(205 ILCS 405/19.3) (from Ch. 17, par. 4838)
Sec. 19.3. (A) The General Assembly hereby finds and
declares: community currency exchanges and ambulatory currency
exchanges provide important and vital services to Illinois
citizens. In so doing, they transact extensive business
involving check cashing and the writing of money orders in
communities in which banking services are generally
unavailable. Customers of currency exchanges who receive these
services must be protected from being charged unreasonable and
unconscionable rates for cashing checks and purchasing money
orders. The Illinois Department of Financial and Professional
Regulation has the responsibility for regulating the
operations of currency exchanges and has the expertise to
determine reasonable maximum rates to be charged for check
cashing and money order purchases. Therefore, it is in the
public interest, convenience, welfare and good to have the
Department establish reasonable maximum rate schedules for
check cashing and the issuance of money orders and to require
community and ambulatory currency exchanges to prominently
display to the public the fees charged for all services. The
Secretary shall review, each year, the cost of operation of the
Currency Exchange Section and the revenue generated from
currency exchange examinations and report to the General
Assembly if the need exists for an increase in the fees
mandated by this Act to maintain the Currency Exchange Section
at a fiscally self-sufficient level. The Secretary shall
include in such report the total amount of funds remitted to
the State and delivered to the State Treasurer by currency
exchanges pursuant to the Revised Uniform Disposition of
Unclaimed Property Act.
(B) The Secretary shall, by rules adopted in accordance
with the Illinois Administrative Procedure Act, expeditiously
formulate and issue schedules of reasonable maximum rates which
can be charged for check cashing and writing of money orders by
community currency exchanges and ambulatory currency
exchanges.
(1) In determining the maximum rate schedules for the
purposes of this Section the Secretary shall take into
account:
(a) Rates charged in the past for the cashing of
checks and the issuance of money orders by community
and ambulatory currency exchanges.
(b) Rates charged by banks or other business
entities for rendering the same or similar services and
the factors upon which those rates are based.
(c) The income, cost and expense of the operation
of currency exchanges.
(d) Rates charged by currency exchanges or other
similar entities located in other states for the same
or similar services and the factors upon which those
rates are based.
(e) Rates charged by the United States Postal
Service for the issuing of money orders and the factors
upon which those rates are based.
(f) A reasonable profit for a currency exchange
operation.
(2)(a) The schedule of reasonable maximum rates
established pursuant to this Section may be modified by the
Secretary from time to time pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act.
(b) Upon the filing of a verified petition setting
forth allegations demonstrating reasonable cause to
believe that the schedule of maximum rates previously
issued and promulgated should be adjusted, the Secretary
shall expeditiously:
(i) reject the petition if it fails to demonstrate
reasonable cause to believe that an adjustment is
necessary; or
(ii) conduct such hearings, in accordance with
this Section, as may be necessary to determine whether
the petition should be granted in whole or in part.
(c) No petition may be filed pursuant to subparagraph
(a) of paragraph (2) of subsection (B) unless:
(i) at least nine months have expired since the
last promulgation of schedules of maximum rates; and
(ii) at least one-fourth of all community currency
exchange licensees join in a petition or, in the case
of ambulatory currency exchanges, a licensee or
licensees authorized to serve at least 100 locations
join in a petition.
(3) Any currency exchange may charge lower fees than
those of the applicable maximum fee schedule after filing
with the Secretary a schedule of fees it proposes to use.
(Source: P.A. 97-315, eff. 1-1-12.)
Section 17-70. The Corporate Fiduciary Act is amended by
changing Section 6-14 as follows:
(205 ILCS 620/6-14) (from Ch. 17, par. 1556-14)
Sec. 6-14. From time to time during receivership the
Commissioner shall make and pay from monies of the corporate
fiduciary a ratable dividend on all claims as may be proved to
his or her satisfaction or adjudicated by the court. After one
year from the entry of a judgment of dissolution, all unclaimed
dividends shall be remitted to the State Treasurer in
accordance with the Revised Uniform Disposition of Unclaimed
Property Act, as now or hereafter amended, together with a list
of all unpaid claimants, their last known addresses and the
amounts unpaid.
(Source: P.A. 91-16, eff. 7-1-99.)
Section 17-75. The Transmitters of Money Act is amended by
changing Section 30 as follows:
(205 ILCS 657/30)
Sec. 30. Surety bond.
(a) An applicant for a license shall post and a licensee
must maintain with the Director a bond or bonds issued by
corporations qualified to do business as surety companies in
this State.
(b) The applicant or licensee shall post a bond in the
amount of the greater of $100,000 or an amount equal to the
daily average of outstanding payment instruments for the
preceding 12 months or operational history, whichever is
shorter, up to a maximum amount of $2,000,000. When the amount
of the required bond exceeds $1,000,000, the applicant or
licensee may, in the alternative, post a bond in the amount of
$1,000,000 plus a dollar for dollar increase in the net worth
of the applicant or licensee over and above the amount required
in Section 20, up to a total amount of $2,000,000.
(c) The bond must be in a form satisfactory to the Director
and shall run to the State of Illinois for the benefit of any
claimant against the applicant or licensee with respect to the
receipt, handling, transmission, and payment of money by the
licensee or authorized seller in connection with the licensed
operations. A claimant damaged by a breach of the conditions of
a bond shall have a right to action upon the bond for damages
suffered thereby and may bring suit directly on the bond, or
the Director may bring suit on behalf of the claimant.
(d) (Blank).
(e) (Blank).
(f) After receiving a license, the licensee must maintain
the required bond plus net worth (if applicable) until 5 years
after it ceases to do business in this State unless all
outstanding payment instruments are eliminated or the
provisions under the Revised Uniform Disposition of Unclaimed
Property Act have become operative and are adhered to by the
licensee. Notwithstanding this provision, however, the amount
required to be maintained may be reduced to the extent that the
amount of the licensee's payment instruments outstanding in
this State are reduced.
(g) If the Director at any time reasonably determines that
the required bond is insecure, deficient in amount, or
exhausted in whole or in part, he may in writing require the
filing of a new or supplemental bond in order to secure
compliance with this Act and may demand compliance with the
requirement within 30 days following service on the licensee.
(Source: P.A. 92-400, eff. 1-1-02.)
Section 17-80. The Adverse Claims to Deposit Accounts Act
is amended by changing Section 10 as follows:
(205 ILCS 700/10)
Sec. 10. Application of Act. This Act shall not preempt:
(1) the Revised Uniform Disposition of Unclaimed Property
Act, nor shall any provision of this Act be construed to
relieve any holder, including a financial institution, from
reporting and remitting all unclaimed property, including
deposit accounts, under the Revised Uniform Disposition of
Unclaimed Property Act;
(2) the Uniform Commercial Code, nor shall any provision of
this Act be construed as affecting the rights of a person with
respect to a deposit account under the Uniform Commercial Code;
(3) the provisions of Section 2-1402 of the Code of Civil
Procedure, nor shall any provision of this Act be construed as
affecting the rights of a person with respect to a deposit
account under Section 2-1402 of the Code of Civil Procedure;
(4) the provisions of Part 7 of Article II of the Code of
Civil Procedure, nor shall any provision of this Act be
construed as affecting the rights of a person with respect to a
deposit account under the provisions of Part 7 of Article II of
the Code of Civil Procedure;
(5) the provisions of Article XXV of the Probate Act of
1975, nor shall any provision of this Act be construed as
affecting the rights of a person with respect to a deposit
account under the provisions of Article XXV of the Probate Act
of 1975; or
(6) the Safety Deposit Box Opening Act, nor shall any
provision of this Act be construed as affecting the rights of a
person with respect to a deposit account under the Safety
Deposit Box Opening Act.
(Source: P.A. 89-601, eff. 8-2-96.)
Section 17-85. The Illinois Insurance Code is amended by
changing Section 210 as follows:
(215 ILCS 5/210) (from Ch. 73, par. 822)
Sec. 210. Distribution of assets; priorities; unpaid
dividends.
(1) Any time after the last day fixed for the filing of
proofs of claims in the liquidation of a company, the court
may, upon the application of the Director authorize him to
declare out of the funds remaining in his hands, one or more
dividends upon all claims allowed in accordance with the
priorities established in Section 205.
(2) Where there has been no adjudication of insolvency, the
Director shall pay all allowed claims in full in accordance
with the priorities set forth in Section 205. The director
shall not be chargeable for any assets so distributed to any
claimant who has failed to file a proper proof of claim before
such distribution has been made.
(3) When subsequent to an adjudication of insolvency,
pursuant to Section 208, a surplus is found to exist after the
payment in full of all allowed claims falling within the
priorities set forth in paragraphs (a), (b), (c), (d), (e), (f)
and (g) of subsection (1) of Section 205 and which have been
duly filed prior to the last date fixed for the filing thereof,
and after the setting aside of a reserve for all additional
costs and expenses of the proceeding, the court shall set a new
date for the filing of claims. After the expiration of the new
date, all allowed claims filed on or before said new date
together with all previously allowed claims falling within the
priorities set forth in paragraphs (h) and (i) of subsection
(1) of Section 205 shall be paid in accordance with the
priorities set forth in Section 205.
(4) Dividends remaining unclaimed or unpaid in the hands of
the Director for 6 months after the final order of distribution
may be by him deposited in one or more savings and loan
associations, State or national banks, trust companies or
savings banks to the credit of the Director, whomsoever he may
be, in trust for the person entitled thereto, but no such
person shall be entitled to any interest upon such deposit. All
such deposits shall be entitled to priority of payment in case
of the insolvency or voluntary or involuntary liquidation of
the depositary on an equality with any other priority given by
the banking law. Any such funds together with interest, if any,
paid or credited thereon, remaining and unclaimed in the hands
of the Director in Trust after 2 years shall be presumed
abandoned and reported and delivered to the State Treasurer and
become subject to the provisions of the Revised Uniform
Disposition of Unclaimed Property Act.
(Source: P.A. 91-16, eff. 7-1-99.)
Section 17-90. The Unclaimed Life Insurance Benefits Act is
amended by changing Sections 5, 15, and 20 as follows:
(215 ILCS 185/5)
Sec. 5. Purpose. This Act shall require recognition of the
Revised Uniform Disposition of Unclaimed Property Act and
require the complete and proper disclosure, transparency, and
accountability relating to any method of payment for life
insurance, annuity, or retained asset agreement death
benefits.
(Source: P.A. 99-893, eff. 1-1-17.)
(215 ILCS 185/15)
Sec. 15. Insurer conduct.
(a) An insurer shall initially perform a comparison of its
insureds', annuitants', and retained asset account holders'
in-force policies, annuity contracts, and retained asset
accounts by using the full Death Master File. The initial
comparison shall be completed on or before December 31, 2017,
unless extended by the Department pursuant to administrative
rule. Thereafter, an insurer shall perform a comparison on at
least a semi-annual basis using the Death Master File update
files for comparisons to identify potential matches of its
insureds, annuitants, and retained asset account holders. In
the event that one of the insurer's lines of business conducts
a search for matches of its insureds, annuitants, and retained
asset account holders against the Death Master File at
intervals more frequently than semi-annually, then all lines of
the insurer's business shall conduct searches for matches
against the Death Master File with the same frequency.
An insured, an annuitant, or a retained asset account
holder is presumed dead if the date of his or her death is
indicated by the comparison required in this subsection (a),
unless the insurer has competent and substantial evidence that
the person is living, including, but not limited to, a contact
made by the insurer with the person or his or her legal
representative.
For those potential matches identified as a result of a
Death Master File match, the insurer shall within 120 days
after the date of death notice, if the insurer has not been
contacted by a beneficiary, determine whether benefits are due
in accordance with the applicable policy or contract and, if
benefits are due in accordance with the applicable policy or
contract:
(1) use good faith efforts, which shall be documented
by the insurer, to locate the beneficiary or beneficiaries;
the Department shall establish by administrative rule
minimum standards for what constitutes good faith efforts
to locate a beneficiary, which shall include: (A) searching
insurer records; (B) the appropriate use of First Class
United States mail, e-mail addresses, and telephone calls;
and (C) reasonable efforts by insurers to obtain updated
contact information for the beneficiary or beneficiaries;
good faith efforts shall not include additional attempts to
contact the beneficiary at an address already confirmed not
to be current; and
(2) provide the appropriate claims forms or
instructions to the beneficiary or beneficiaries to make a
claim, including the need to provide an official death
certificate if applicable under the policy or annuity
contract.
(b) Insurers shall implement procedures to account for the
following when conducting searches of the Death Master File:
(1) common nicknames, initials used in lieu of a first
or middle name, use of a middle name, compound first and
middle names, and interchanged first and middle names;
(2) compound last names, maiden or married names, and
hyphens, blank spaces, or apostrophes in last names;
(3) transposition of the "month" and "date" portions of
the date of birth; and
(4) incomplete social security numbers.
(c) To the extent permitted by law, an insurer may disclose
the minimum necessary personal information about the insured,
annuity owner, retained asset account holder, or beneficiary to
a person whom the insurer reasonably believes may be able to
assist the insurer with locating the beneficiary or a person
otherwise entitled to payment of the claims proceeds.
(d) An insurer or its service provider shall not charge any
beneficiary or other authorized representative for any fees or
costs associated with a Death Master File search or
verification of a Death Master File match conducted pursuant to
this Act.
(e) The benefits from a policy, annuity contract, or a
retained asset account, plus any applicable accrued interest,
shall first be payable to the designated beneficiaries or
owners and, in the event the beneficiaries or owners cannot be
found, shall be reported and delivered to the State Treasurer
pursuant to the Revised Uniform Disposition of Unclaimed
Property Act. Nothing in this subsection (e) is intended to
alter the amounts reportable under the existing provisions of
the Revised Uniform Disposition of Unclaimed Property Act or to
allow the imposition of additional statutory interest under
Article XIV of the Illinois Insurance Code.
(f) Failure to meet any requirement of this Section with
such frequency as to constitute a general business practice is
a violation of Section 424 of the Illinois Insurance Code.
Nothing in this Section shall be construed to create or imply a
private cause of action for a violation of this Section.
(Source: P.A. 99-893, eff. 1-1-17.)
(215 ILCS 185/20)
Sec. 20. Revised Uniform Disposition of Unclaimed Property
Act. Nothing in this Act shall be construed to amend, modify,
or supersede the Revised Uniform Disposition of Unclaimed
Property Act, including the authority of the State Treasurer to
examine the records of any person if the State Treasurer has
reason to believe that such person has failed to report
property that should have been reported pursuant to the Revised
Uniform Disposition of Unclaimed Property Act.
(Source: P.A. 99-893, eff. 1-1-17.)
Section 17-95. The Real Estate License Act of 2000 is
amended by changing Section 20-20 as follows:
(225 ILCS 454/20-20)
(Section scheduled to be repealed on January 1, 2020)
Sec. 20-20. Grounds for discipline.
(a) The Department may refuse to issue or renew a license,
may place on probation, suspend, or revoke any license,
reprimand, or take any other disciplinary or non-disciplinary
action as the Department may deem proper and impose a fine not
to exceed $25,000 upon any licensee or applicant under this Act
or any person who holds himself or herself out as an applicant
or licensee or against a licensee in handling his or her own
property, whether held by deed, option, or otherwise, for any
one or any combination of the following causes:
(1) Fraud or misrepresentation in applying for, or
procuring, a license under this Act or in connection with
applying for renewal of a license under this Act.
(2) The conviction of or plea of guilty or plea of nolo
contendere to a felony or misdemeanor in this State or any
other jurisdiction; or the entry of an administrative
sanction by a government agency in this State or any other
jurisdiction. Action taken under this paragraph (2) for a
misdemeanor or an administrative sanction is limited to a
misdemeanor or administrative sanction that has as an
essential element dishonesty or fraud or involves larceny,
embezzlement, or obtaining money, property, or credit by
false pretenses or by means of a confidence game.
(3) Inability to practice the profession with
reasonable judgment, skill, or safety as a result of a
physical illness, including, but not limited to,
deterioration through the aging process or loss of motor
skill, or a mental illness or disability.
(4) Practice under this Act as a licensee in a retail
sales establishment from an office, desk, or space that is
not separated from the main retail business by a separate
and distinct area within the establishment.
(5) Having been disciplined by another state, the
District of Columbia, a territory, a foreign nation, or a
governmental agency authorized to impose discipline if at
least one of the grounds for that discipline is the same as
or the equivalent of one of the grounds for which a
licensee may be disciplined under this Act. A certified
copy of the record of the action by the other state or
jurisdiction shall be prima facie evidence thereof.
(6) Engaging in the practice of real estate brokerage
without a license or after the licensee's license was
expired or while the license was inoperative.
(7) Cheating on or attempting to subvert the Real
Estate License Exam or continuing education exam.
(8) Aiding or abetting an applicant to subvert or cheat
on the Real Estate License Exam or continuing education
exam administered pursuant to this Act.
(9) Advertising that is inaccurate, misleading, or
contrary to the provisions of the Act.
(10) Making any substantial misrepresentation or
untruthful advertising.
(11) Making any false promises of a character likely to
influence, persuade, or induce.
(12) Pursuing a continued and flagrant course of
misrepresentation or the making of false promises through
licensees, employees, agents, advertising, or otherwise.
(13) Any misleading or untruthful advertising, or
using any trade name or insignia of membership in any real
estate organization of which the licensee is not a member.
(14) Acting for more than one party in a transaction
without providing written notice to all parties for whom
the licensee acts.
(15) Representing or attempting to represent a broker
other than the sponsoring broker.
(16) Failure to account for or to remit any moneys or
documents coming into his or her possession that belong to
others.
(17) Failure to maintain and deposit in a special
account, separate and apart from personal and other
business accounts, all escrow moneys belonging to others
entrusted to a licensee while acting as a broker, escrow
agent, or temporary custodian of the funds of others or
failure to maintain all escrow moneys on deposit in the
account until the transactions are consummated or
terminated, except to the extent that the moneys, or any
part thereof, shall be:
(A) disbursed prior to the consummation or
termination (i) in accordance with the written
direction of the principals to the transaction or their
duly authorized agents, (ii) in accordance with
directions providing for the release, payment, or
distribution of escrow moneys contained in any written
contract signed by the principals to the transaction or
their duly authorized agents, or (iii) pursuant to an
order of a court of competent jurisdiction; or
(B) deemed abandoned and transferred to the Office
of the State Treasurer to be handled as unclaimed
property pursuant to the Revised Uniform Disposition
of Unclaimed Property Act. Escrow moneys may be deemed
abandoned under this subparagraph (B) only: (i) in the
absence of disbursement under subparagraph (A); (ii)
in the absence of notice of the filing of any claim in
a court of competent jurisdiction; and (iii) if 6
months have elapsed after the receipt of a written
demand for the escrow moneys from one of the principals
to the transaction or the principal's duly authorized
agent.
The account shall be noninterest bearing, unless the
character of the deposit is such that payment of interest
thereon is otherwise required by law or unless the
principals to the transaction specifically require, in
writing, that the deposit be placed in an interest bearing
account.
(18) Failure to make available to the Department all
escrow records and related documents maintained in
connection with the practice of real estate within 24 hours
of a request for those documents by Department personnel.
(19) Failing to furnish copies upon request of
documents relating to a real estate transaction to a party
who has executed that document.
(20) Failure of a sponsoring broker to timely provide
information, sponsor cards, or termination of licenses to
the Department.
(21) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public.
(22) Commingling the money or property of others with
his or her own money or property.
(23) Employing any person on a purely temporary or
single deal basis as a means of evading the law regarding
payment of commission to nonlicensees on some contemplated
transactions.
(24) Permitting the use of his or her license as a
broker to enable a leasing agent or unlicensed person to
operate a real estate business without actual
participation therein and control thereof by the broker.
(25) Any other conduct, whether of the same or a
different character from that specified in this Section,
that constitutes dishonest dealing.
(26) Displaying a "for rent" or "for sale" sign on any
property without the written consent of an owner or his or
her duly authorized agent or advertising by any means that
any property is for sale or for rent without the written
consent of the owner or his or her authorized agent.
(27) Failing to provide information requested by the
Department, or otherwise respond to that request, within 30
days of the request.
(28) Advertising by means of a blind advertisement,
except as otherwise permitted in Section 10-30 of this Act.
(29) Offering guaranteed sales plans, as defined in
clause (A) of this subdivision (29), except to the extent
hereinafter set forth:
(A) A "guaranteed sales plan" is any real estate
purchase or sales plan whereby a licensee enters into a
conditional or unconditional written contract with a
seller, prior to entering into a brokerage agreement
with the seller, by the terms of which a licensee
agrees to purchase a property of the seller within a
specified period of time at a specific price in the
event the property is not sold in accordance with the
terms of a brokerage agreement to be entered into
between the sponsoring broker and the seller.
(B) A licensee offering a guaranteed sales plan
shall provide the details and conditions of the plan in
writing to the party to whom the plan is offered.
(C) A licensee offering a guaranteed sales plan
shall provide to the party to whom the plan is offered
evidence of sufficient financial resources to satisfy
the commitment to purchase undertaken by the broker in
the plan.
(D) Any licensee offering a guaranteed sales plan
shall undertake to market the property of the seller
subject to the plan in the same manner in which the
broker would market any other property, unless the
agreement with the seller provides otherwise.
(E) The licensee cannot purchase seller's property
until the brokerage agreement has ended according to
its terms or is otherwise terminated.
(F) Any licensee who fails to perform on a
guaranteed sales plan in strict accordance with its
terms shall be subject to all the penalties provided in
this Act for violations thereof and, in addition, shall
be subject to a civil fine payable to the party injured
by the default in an amount of up to $25,000.
(30) Influencing or attempting to influence, by any
words or acts, a prospective seller, purchaser, occupant,
landlord, or tenant of real estate, in connection with
viewing, buying, or leasing real estate, so as to promote
or tend to promote the continuance or maintenance of
racially and religiously segregated housing or so as to
retard, obstruct, or discourage racially integrated
housing on or in any street, block, neighborhood, or
community.
(31) Engaging in any act that constitutes a violation
of any provision of Article 3 of the Illinois Human Rights
Act, whether or not a complaint has been filed with or
adjudicated by the Human Rights Commission.
(32) Inducing any party to a contract of sale or lease
or brokerage agreement to break the contract of sale or
lease or brokerage agreement for the purpose of
substituting, in lieu thereof, a new contract for sale or
lease or brokerage agreement with a third party.
(33) Negotiating a sale, exchange, or lease of real
estate directly with any person if the licensee knows that
the person has an exclusive brokerage agreement with
another broker, unless specifically authorized by that
broker.
(34) When a licensee is also an attorney, acting as the
attorney for either the buyer or the seller in the same
transaction in which the licensee is acting or has acted as
a managing broker or broker.
(35) Advertising or offering merchandise or services
as free if any conditions or obligations necessary for
receiving the merchandise or services are not disclosed in
the same advertisement or offer. These conditions or
obligations include without limitation the requirement
that the recipient attend a promotional activity or visit a
real estate site. As used in this subdivision (35), "free"
includes terms such as "award", "prize", "no charge", "free
of charge", "without charge", and similar words or phrases
that reasonably lead a person to believe that he or she may
receive or has been selected to receive something of value,
without any conditions or obligations on the part of the
recipient.
(36) Disregarding or violating any provision of the
Land Sales Registration Act of 1989, the Illinois Real
Estate Time-Share Act, or the published rules promulgated
by the Department to enforce those Acts.
(37) Violating the terms of a disciplinary order issued
by the Department.
(38) Paying or failing to disclose compensation in
violation of Article 10 of this Act.
(39) Requiring a party to a transaction who is not a
client of the licensee to allow the licensee to retain a
portion of the escrow moneys for payment of the licensee's
commission or expenses as a condition for release of the
escrow moneys to that party.
(40) Disregarding or violating any provision of this
Act or the published rules promulgated by the Department to
enforce this Act or aiding or abetting any individual,
partnership, registered limited liability partnership,
limited liability company, or corporation in disregarding
any provision of this Act or the published rules
promulgated by the Department to enforce this Act.
(41) Failing to provide the minimum services required
by Section 15-75 of this Act when acting under an exclusive
brokerage agreement.
(42) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in a managing broker, broker, or leasing
agent's inability to practice with reasonable skill or
safety.
(43) Enabling, aiding, or abetting an auctioneer, as
defined in the Auction License Act, to conduct a real
estate auction in a manner that is in violation of this
Act.
(b) The Department may refuse to issue or renew or may
suspend the license of any person who fails to file a return,
pay the tax, penalty or interest shown in a filed return, or
pay any final assessment of tax, penalty, or interest, as
required by any tax Act administered by the Department of
Revenue, until such time as the requirements of that tax Act
are satisfied in accordance with subsection (g) of Section
2105-15 of the Civil Administrative Code of Illinois.
(c) The Department shall deny a license or renewal
authorized by this Act to a person who has defaulted on an
educational loan or scholarship provided or guaranteed by the
Illinois Student Assistance Commission or any governmental
agency of this State in accordance with item (5) of subsection
(a) of Section 2105-15 of the Civil Administrative Code of
Illinois.
(d) In cases where the Department of Healthcare and Family
Services (formerly Department of Public Aid) has previously
determined that a licensee or a potential licensee is more than
30 days delinquent in the payment of child support and has
subsequently certified the delinquency to the Department may
refuse to issue or renew or may revoke or suspend that person's
license or may take other disciplinary action against that
person based solely upon the certification of delinquency made
by the Department of Healthcare and Family Services in
accordance with item (5) of subsection (a) of Section 2105-15
of the Civil Administrative Code of Illinois.
(e) In enforcing this Section, the Department or Board upon
a showing of a possible violation may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at
his or her own expense, another physician of his or her choice
present during all aspects of this examination. Failure of an
individual to submit to a mental or physical examination, when
directed, shall be grounds for suspension of his or her license
until the individual submits to the examination if the
Department finds, after notice and hearing, that the refusal to
submit to the examination was without reasonable cause.
If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department.
In instances in which the Secretary immediately suspends a
person's license under this Section, a hearing on that person's
license must be convened by the Department within 30 days after
the suspension and completed without appreciable delay. The
Department and Board shall have the authority to review the
subject individual's record of treatment and counseling
regarding the impairment to the extent permitted by applicable
federal statutes and regulations safeguarding the
confidentiality of medical records.
An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the
provisions of his or her license.
(Source: P.A. 98-553, eff. 1-1-14; 98-756, eff. 7-16-14;
99-227, eff. 8-3-15.)
Section 17-100. The Code of Criminal Procedure of 1963 is
amended by changing Section 110-17 as follows:
(725 ILCS 5/110-17) (from Ch. 38, par. 110-17)
Sec. 110-17. Unclaimed Bail Deposits. Notwithstanding the
provisions of the Revised Uniform Disposition of Unclaimed
Property Act, any sum of money deposited by any person to
secure his release from custody which remains unclaimed by the
person entitled to its return for 3 years after the conditions
of the bail bond have been performed and the accused has been
discharged from all obligations in the cause shall be presumed
to be abandoned.
(a) The clerk of the circuit court, as soon thereafter as
practicable, shall cause notice to be published once, in
English, in a newspaper or newspapers of general circulation in
the county wherein the deposit of bond was received.
(b) The published notice shall be entitled "Notice of
Persons Appearing to be Owners of Abandoned Property" and shall
contain:
(1) The names, in alphabetical order, of persons to
whom the notice is directed.
(2) A statement that information concerning the amount
of the property may be obtained by any persons possessing
an interest in the property by making an inquiry at the
office of the clerk of the circuit court at a location
designated by him.
(3) A statement that if proof of claim is not presented
by the owner to the clerk of the circuit court and if the
owner's right to receive the property is not established to
the satisfaction of the clerk of the court within 65 days
from the date of the published notice, the abandoned
property will be placed in the custody of the treasurer of
the county, not later than 85 days after such publication,
to whom all further claims must thereafter be directed. If
the claim is established as aforesaid and after deducting
an amount not to exceed $20 to cover the cost of notice
publication and related clerical expenses, the clerk of the
court shall make payment to the person entitled thereto.
(4) The clerk of the circuit court is not required to
publish in such notice any items of less than $100 unless
he deems such publication in the public interest.
(c) Any clerk of the circuit court who has caused notice to
be published as provided by this Section shall, within 20 days
after the time specified in this Section for claiming the
property from the clerk of the court, pay or deliver to the
treasurer of the county having jurisdiction of the offense,
whether the bond was taken there or any other county, all sums
deposited as specified in this section less such amounts as may
have been returned to the persons whose rights to receive the
sums deposited have been established to the satisfaction of the
clerk of the circuit court. Any clerk of the circuit court who
transfers such sums to the county treasury including sums
deposited by persons whose names are not required to be set
forth in the published notice aforesaid, is relieved of all
liability for such sums as have been transferred as unclaimed
bail deposits or any claim which then exists or which
thereafter may arise or be made in respect to such sums.
(d) The treasurer of the county shall keep just and true
accounts of all moneys paid into the treasury, and if any
person appears within 5 years after the deposit of moneys by
the clerk of the circuit court and claims any money paid into
the treasury, he shall file a claim therefor on the form
prescribed by the treasurer of the county who shall consider
any claim filed under this Act and who may, in his discretion,
hold a hearing and receive evidence concerning it. The
treasurer of the county shall prepare a finding and the
decision in writing on each hearing, stating the substance of
any evidence heard by him, his findings of fact in respect
thereto, and the reasons for his decision. The decision shall
be a public record.
(e) All claims which are not filed within the 5 year period
shall be forever barred.
(Source: P.A. 85-768.)
Section 17-105. The Probate Act of 1975 is amended by
changing Sections 2-1 and 2-2 as follows:
(755 ILCS 5/2-1) (from Ch. 110 1/2, par. 2-1)
Sec. 2-1. Rules of descent and distribution. The intestate
real and personal estate of a resident decedent and the
intestate real estate in this State of a nonresident decedent,
after all just claims against his estate are fully paid,
descends and shall be distributed as follows:
(a) If there is a surviving spouse and also a descendant of
the decedent: 1/2 of the entire estate to the surviving spouse
and 1/2 to the decedent's descendants per stirpes.
(b) If there is no surviving spouse but a descendant of the
decedent: the entire estate to the decedent's descendants per
stirpes.
(c) If there is a surviving spouse but no descendant of the
decedent: the entire estate to the surviving spouse.
(d) If there is no surviving spouse or descendant but a
parent, brother, sister or descendant of a brother or sister of
the decedent: the entire estate to the parents, brothers and
sisters of the decedent in equal parts, allowing to the
surviving parent if one is dead a double portion and to the
descendants of a deceased brother or sister per stirpes the
portion which the deceased brother or sister would have taken
if living.
(e) If there is no surviving spouse, descendant, parent,
brother, sister or descendant of a brother or sister of the
decedent but a grandparent or descendant of a grandparent of
the decedent: (1) 1/2 of the entire estate to the decedent's
maternal grandparents in equal parts or to the survivor of
them, or if there is none surviving, to their descendants per
stirpes, and (2) 1/2 of the entire estate to the decedent's
paternal grandparents in equal parts or to the survivor of
them, or if there is none surviving, to their descendants per
stirpes. If there is no surviving paternal grandparent or
descendant of a paternal grandparent, but a maternal
grandparent or descendant of a maternal grandparent of the
decedent: the entire estate to the decedent's maternal
grandparents in equal parts or to the survivor of them, or if
there is none surviving, to their descendants per stirpes. If
there is no surviving maternal grandparent or descendant of a
maternal grandparent, but a paternal grandparent or descendant
of a paternal grandparent of the decedent: the entire estate to
the decedent's paternal grandparents in equal parts or to the
survivor of them, or if there is none surviving, to their
descendants per stirpes.
(f) If there is no surviving spouse, descendant, parent,
brother, sister, descendant of a brother or sister or
grandparent or descendant of a grandparent of the decedent: (1)
1/2 of the entire estate to the decedent's maternal
great-grandparents in equal parts or to the survivor of them,
or if there is none surviving, to their descendants per
stirpes, and (2) 1/2 of the entire estate to the decedent's
paternal great-grandparents in equal parts or to the survivor
of them, or if there is none surviving, to their descendants
per stirpes. If there is no surviving paternal
great-grandparent or descendant of a paternal
great-grandparent, but a maternal great-grandparent or
descendant of a maternal great-grandparent of the decedent: the
entire estate to the decedent's maternal great-grandparents in
equal parts or to the survivor of them, or if there is none
surviving, to their descendants per stirpes. If there is no
surviving maternal great-grandparent or descendant of a
maternal great-grandparent, but a paternal great-grandparent
or descendant of a paternal great-grandparent of the decedent:
the entire estate to the decedent's paternal
great-grandparents in equal parts or to the survivor of them,
or if there is none surviving, to their descendants per
stirpes.
(g) If there is no surviving spouse, descendant, parent,
brother, sister, descendant of a brother or sister,
grandparent, descendant of a grandparent, great-grandparent or
descendant of a great-grandparent of the decedent: the entire
estate in equal parts to the nearest kindred of the decedent in
equal degree (computing by the rules of the civil law) and
without representation.
(h) If there is no surviving spouse and no known kindred of
the decedent: the real estate escheats to the county in which
it is located; the personal estate physically located within
this State and the personal estate physically located or held
outside this State which is the subject of ancillary
administration of an estate being administered within this
State escheats to the county of which the decedent was a
resident, or, if the decedent was not a resident of this State,
to the county in which it is located; all other personal
property of the decedent of every class and character, wherever
situate, or the proceeds thereof, shall escheat to this State
and be delivered to the State Treasurer pursuant to the Revised
Uniform Disposition of Unclaimed Property Act.
In no case is there any distinction between the kindred of
the whole and the half blood.
(Source: P.A. 91-16, eff. 7-1-99.)
(755 ILCS 5/2-2) (from Ch. 110 1/2, par. 2-2)
Sec. 2-2. Children born out of wedlock. The intestate real
and personal estate of a resident decedent who was a child born
out of wedlock at the time of death and the intestate real
estate in this State of a nonresident decedent who was a child
born out of wedlock at the time of death, after all just claims
against his estate are fully paid, descends and shall be
distributed as provided in Section 2-1, subject to Section
2-6.5 of this Act, if both parents are eligible parents. As
used in this Section, "eligible parent" means a parent of the
decedent who, during the decedent's lifetime, acknowledged the
decedent as the parent's child, established a parental
relationship with the decedent, and supported the decedent as
the parent's child. "Eligible parents" who are in arrears of in
excess of one year's child support obligations shall not
receive any property benefit or other interest of the decedent
unless and until a court of competent jurisdiction makes a
determination as to the effect on the deceased of the arrearage
and allows a reduced benefit. In no event shall the reduction
of the benefit or other interest be less than the amount of
child support owed for the support of the decedent at the time
of death. The court's considerations shall include but are not
limited to the considerations in subsections (1) through (3) of
Section 2-6.5 of this Act.
If neither parent is an eligible parent, the intestate real
and personal estate of a resident decedent who was a child born
out of wedlock at the time of death and the intestate real
estate in this State of a nonresident decedent who was a child
born out of wedlock at the time of death, after all just claims
against his or her estate are fully paid, descends and shall be
distributed as provided in Section 2-1, but the parents of the
decedent shall be treated as having predeceased the decedent.
If only one parent is an eligible parent, the intestate
real and personal estate of a resident decedent who was a child
born out of wedlock at the time of death and the intestate real
estate in this State of a nonresident decedent who was a child
born out of wedlock at the time of death, after all just claims
against his or her estate are fully paid, subject to Section
2-6.5 of this Act, descends and shall be distributed as
follows:
(a) If there is a surviving spouse and also a descendant of
the decedent: 1/2 of the entire estate to the surviving spouse
and 1/2 to the decedent's descendants per stirpes.
(b) If there is no surviving spouse but a descendant of the
decedent: the entire estate to the decedent's descendants per
stirpes.
(c) If there is a surviving spouse but no descendant of the
decedent: the entire estate to the surviving spouse.
(d) If there is no surviving spouse or descendant but the
eligible parent or a descendant of the eligible parent of the
decedent: the entire estate to the eligible parent and the
eligible parent's descendants, allowing 1/2 to the eligible
parent and 1/2 to the eligible parent's descendants per
stirpes.
(e) If there is no surviving spouse, descendant, eligible
parent, or descendant of the eligible parent of the decedent,
but a grandparent on the eligible parent's side of the family
or descendant of such grandparent of the decedent: the entire
estate to the decedent's grandparents on the eligible parent's
side of the family in equal parts, or to the survivor of them,
or if there is none surviving, to their descendants per
stirpes.
(f) If there is no surviving spouse, descendant, eligible
parent, descendant of the eligible parent, grandparent on the
eligible parent's side of the family, or descendant of such
grandparent of the decedent: the entire estate to the
decedent's great-grandparents on the eligible parent's side of
the family in equal parts or to the survivor of them, or if
there is none surviving, to their descendants per stirpes.
(g) If there is no surviving spouse, descendant, eligible
parent, descendant of the eligible parent, grandparent on the
eligible parent's side of the family, descendant of such
grandparent, great-grandparent on the eligible parent's side
of the family, or descendant of such great-grandparent of the
decedent: the entire estate in equal parts to the nearest
kindred of the eligible parent of the decedent in equal degree
(computing by the rules of the civil law) and without
representation.
(h) If there is no surviving spouse, descendant, or
eligible parent of the decedent and no known kindred of the
eligible parent of the decedent: the real estate escheats to
the county in which it is located; the personal estate
physically located within this State and the personal estate
physically located or held outside this State which is the
subject of ancillary administration within this State escheats
to the county of which the decedent was a resident or, if the
decedent was not a resident of this State, to the county in
which it is located; all other personal property of the
decedent of every class and character, wherever situate, or the
proceeds thereof, shall escheat to this State and be delivered
to the State Treasurer of this State pursuant to the Revised
Uniform Disposition of Unclaimed Property Act.
For purposes of inheritance, the changes made by this
amendatory Act of 1998 apply to all decedents who die on or
after the effective date of this amendatory Act of 1998. For
the purpose of determining the property rights of any person
under any instrument, the changes made by this amendatory Act
of 1998 apply to all instruments executed on or after the
effective date of this amendatory Act of 1998.
A child born out of wedlock is heir of his mother and of
any maternal ancestor and of any person from whom his mother
might have inherited, if living; and the descendants of a
person who was a child born out of wedlock shall represent such
person and take by descent any estate which the parent would
have taken, if living. If a decedent has acknowledged paternity
of a child born out of wedlock or if during his lifetime or
after his death a decedent has been adjudged to be the father
of a child born out of wedlock, that person is heir of his
father and of any paternal ancestor and of any person from whom
his father might have inherited, if living; and the descendants
of a person who was a child born out of wedlock shall represent
that person and take by descent any estate which the parent
would have taken, if living. If during his lifetime the
decedent was adjudged to be the father of a child born out of
wedlock by a court of competent jurisdiction, an authenticated
copy of the judgment is sufficient proof of the paternity; but
in all other cases paternity must be proved by clear and
convincing evidence. A person who was a child born out of
wedlock whose parents intermarry and who is acknowledged by the
father as the father's child is a lawful child of the father.
After a child born out of wedlock is adopted, that person's
relationship to his or her adopting and natural parents shall
be governed by Section 2-4 of this Act. For purposes of
inheritance, the changes made by this amendatory Act of 1997
apply to all decedents who die on or after January 1, 1998. For
the purpose of determining the property rights of any person
under any instrument, the changes made by this amendatory Act
of 1997 apply to all instruments executed on or after January
1, 1998.
(Source: P.A. 94-229, eff. 1-1-06.)
Section 17-110. The Sale of Unclaimed Property Act is
amended by changing Section 3 as follows:
(770 ILCS 90/3) (from Ch. 141, par. 3)
Sec. 3. All persons other than common carriers having a
lien on personal property, by virtue of the Innkeepers Lien Act
or for more than $2,000 by virtue of the Labor and Storage Lien
Act may enforce the lien by a sale of the property, on giving
to the owner thereof, if he and his residence be known to the
person having such lien, 30 days' notice by certified mail, in
writing of the time and place of such sale, and if the owner or
his place of residence be unknown to the person having such
lien, then upon his filing his affidavit to that effect with
the clerk of the circuit court in the county where such
property is situated; notice of the sale may be given by
publishing the same once in each week for 3 successive weeks in
some newspaper of general circulation published in the county,
and out of the proceeds of the sale all costs and charges for
advertising and making the same, and the amount of the lien
shall be paid, and the surplus, if any, shall be paid to the
owner of the property or, if not claimed by said owner, such
surplus, if any, shall be disposed under the Revised Uniform
Disposition of Unclaimed Property Act. All sales pursuant to
this Section must be public and conducted in a commercially
reasonable manner so as to maximize the net proceeds of the
sale. Conformity to the requirements of this Act shall be a
perpetual bar to any action against such lienor by any person
for the recovery of such chattels or the value thereof or any
damages growing out of the failure of such person to receive
such chattels.
(Source: P.A. 87-206.)
Section 17-115. The Business Corporation Act of 1983 is
amended by changing Section 12.70 as follows:
(805 ILCS 5/12.70) (from Ch. 32, par. 12.70)
Sec. 12.70. Deposit of amount due certain shareholders.
Upon the distribution of the assets of a corporation among its
shareholders, the distributive portion to which a shareholder
would be entitled who is unknown or cannot can not be found, or
who is under disability and there is no person legally
competent to receive such distributive portion, shall be
presumed abandoned and reported and delivered to the State
Treasurer and become subject to the provision of the Revised
Uniform Disposition of Unclaimed Property Act. In the event
such distribution is be made other than in cash, such
distributive portion of the assets shall be reduced to cash
before being so reported and delivered.
(Source: P.A. 91-16, eff. 7-1-99.)
Section 17-120. The General Not For Profit Corporation Act
of 1986 is amended by changing Section 112.70 as follows:
(805 ILCS 105/112.70) (from Ch. 32, par. 112.70)
Sec. 112.70. Deposit of amount due. Upon the distribution
of the assets of a corporation, the distributive portion to
which a person would be entitled who is unknown or cannot be
found, or who is under disability and there is no person
legally competent to receive such distributive portion, shall
be presumed abandoned and reported and delivered to the State
Treasurer and become subject to the Revised provision of the
Uniform Disposition of Unclaimed Property Act. In the event
such distribution is be made other than in cash, such
distributive portion of the assets shall be reduced to cash
before being so reported and delivered.
(Source: P.A. 91-16, eff. 7-1-99.)
ARTICLE 20. AMENDATORY PROVISIONS; INCOME TAX
Section 15-5. The Illinois Income Tax Act is amended by
changing Sections 201, 202.5, 203, 204, 208, 212, 901, and 1501
and by adding Section 225 as follows:
(35 ILCS 5/201) (from Ch. 120, par. 2-201)
Sec. 201. Tax Imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount equal
to 2 1/2% of the taxpayer's net income for the taxable
year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate, for
taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate, for
taxable years beginning on or after January 1, 2011, and
ending prior to January 1, 2015, an amount equal to 5% of
the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section 202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017 January 1, 2025, an amount
equal to 3.75% of the taxpayer's net income for the taxable
year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017 January
1, 2025, and ending after June 30, 2017 December 31, 2024,
an amount equal to the sum of (i) 3.75% of the taxpayer's
net income for the period prior to July 1, 2017 January 1,
2025, as calculated under Section 202.5, and (ii) 4.95%
3.25% of the taxpayer's net income for the period after
June 30, 2017 December 31, 2024, as calculated under
Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017
January 1, 2025, an amount equal to 4.95% 3.25% of the
taxpayer's net income for the taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1, 1989,
as calculated under Section 202.3, and (ii) 4.8% of the
taxpayer's net income for the period after June 30, 1989,
as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017 January 1, 2025, an amount equal to 5.25% of
the taxpayer's net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017 January 1, 2025, and ending
after June 30, 2017 December 31, 2024, an amount equal to
the sum of (i) 5.25% of the taxpayer's net income for the
period prior to July 1, 2017 January 1, 2025, as calculated
under Section 202.5, and (ii) 7% 4.8% of the taxpayer's net
income for the period after June 30, 2017 December 31,
2024, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017 January 1, 2025, an
amount equal to 7% 4.8% of the taxpayer's net income for
the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or receiving
income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income
tax imposed by subsections (a) and (b) of this Section and in
addition to all other occupation or privilege taxes imposed by
this State or by any municipal corporation or political
subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on such
income by the foreign insurer's state of domicile. For the
purposes of this subsection (d-1), an inter-affiliate includes
a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such foreign
insurer under this Act for a taxable year, net of all
credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of the
Illinois Insurance Code, the fire insurance company
tax imposed by Section 12 of the Fire Investigation
Act, and the fire department taxes imposed under
Section 11-10-1 of the Illinois Municipal Code,
equals 1.25% for taxable years ending prior to December 31,
2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of Section
409 of the Illinois Insurance Code. This paragraph will in
no event increase the rates imposed under subsections (b)
and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates imposed
by subsection (b) and only after the tax imposed by
subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service during
the taxable year, provided such property is placed in
service on or after July 1, 1984. There shall be allowed an
additional credit equal to .5% of the basis of qualified
property placed in service during the taxable year,
provided such property is placed in service on or after
July 1, 1986, and the taxpayer's base employment within
Illinois has increased by 1% or more over the preceding
year as determined by the taxpayer's employment records
filed with the Illinois Department of Employment Security.
Taxpayers who are new to Illinois shall be deemed to have
met the 1% growth in base employment for the first year in
which they file employment records with the Illinois
Department of Employment Security. The provisions added to
this Section by Public Act 85-1200 (and restored by Public
Act 87-895) shall be construed as declaratory of existing
law and not as a new enactment. If, in any year, the
increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit shall
be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i) and
(ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability or
the liability as later amended, such excess may be carried
forward and applied to the tax liability of the 5 taxable
years following the excess credit years. The credit shall
be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, earlier credit
shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land or
improvements to real property that are not a structural
component of a building such as landscaping, sewer
lines, local access roads, fencing, parking lots, and
other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes of
this subsection (e) the term "mining" shall have the same
meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection (e),
the term "retailing" means the sale of tangible personal
property for use or consumption and not for resale, or
services rendered in conjunction with the sale of tangible
personal property for use or consumption and not for
resale. For purposes of this subsection (e), "tangible
personal property" has the same meaning as when that term
is used in the Retailers' Occupation Tax Act, and, for
taxable years ending after December 31, 2008, does not
include the generation, transmission, or distribution of
electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in Illinois by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal Property
Tax Replacement Income Tax for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation and, (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (7), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs incurred
pursuant to a binding contract entered into on or before
December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners the
credits to which the partnership is entitled under this
subsection (e) for the taxable year. A partner may use the
credit allocated to him or her under this paragraph only
against the tax imposed in subsections (c) and (d) of this
Section. If the partnership makes that election, those
credits shall be allocated among the partners in the
partnership in accordance with the rules set forth in
Section 704(b) of the Internal Revenue Code, and the rules
promulgated under that Section, and the allocated amount of
the credits shall be allowed to the partners for that
taxable year. The partnership shall make this election on
its Personal Property Tax Replacement Income Tax return for
that taxable year. The election to pass through the credits
shall be irrevocable.
For taxable years ending on or after December 31, 2000,
a partner that qualifies its partnership for a subtraction
under subparagraph (I) of paragraph (2) of subsection (d)
of Section 203 or a shareholder that qualifies a Subchapter
S corporation for a subtraction under subparagraph (S) of
paragraph (2) of subsection (b) of Section 203 shall be
allowed a credit under this subsection (e) equal to its
share of the credit earned under this subsection (e) during
the taxable year by the partnership or Subchapter S
corporation, determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code. This paragraph is exempt from the provisions
of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in service
in an Enterprise Zone created pursuant to the Illinois
Enterprise Zone Act or, for property placed in service on
or after July 1, 2006, a River Edge Redevelopment Zone
established pursuant to the River Edge Redevelopment Zone
Act. For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
purposes of federal and State income taxation, there shall
be allowed a credit under this subsection (f) to be
determined in accordance with the determination of income
and distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. The credit
shall be .5% of the basis for such property. The credit
shall be available only in the taxable year in which the
property is placed in service in the Enterprise Zone or
River Edge Redevelopment Zone and shall not be allowed to
the extent that it would reduce a taxpayer's liability for
the tax imposed by subsections (a) and (b) of this Section
to below zero. For tax years ending on or after December
31, 1985, the credit shall be allowed for the tax year in
which the property is placed in service, or, if the amount
of the credit exceeds the tax liability for that year,
whether it exceeds the original liability or the liability
as later amended, such excess may be carried forward and
applied to the tax liability of the 5 taxable years
following the excess credit year. The credit shall be
applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, the credit
accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise Zone
or River Edge Redevelopment Zone within 48 months after
being placed in service, the tax imposed under subsections
(a) and (b) of this Section for such taxable year shall be
increased. Such increase shall be determined by (i)
recomputing the investment credit which would have been
allowed for the year in which credit for such property was
originally allowed by eliminating such property from such
computation, and (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (6), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more over
the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file employment
records with the Illinois Department of Employment
Security. If, in any year, the increase in base employment
within Illinois over the preceding year is less than 1%,
the additional credit shall be limited to that percentage
times a fraction, the numerator of which is 0.5% and the
denominator of which is 1%, but shall not exceed 0.5%.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section 5.5
of the Illinois Enterprise Zone Act, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in the
taxable year in which such investments have been completed.
The credit for additional investments beyond the minimum
investment by a designated high impact business authorized
under subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act shall be available only in the taxable
year in which the property is placed in service and shall
not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections (a)
and (b) of this Section to below zero. For tax years ending
on or after December 31, 1987, the credit shall be allowed
for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed
in service in a federally designated Foreign Trade Zone or
Sub-Zone located in Illinois by the taxpayer, the amount of
such increase shall be deemed property placed in service on
the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such property
was originally allowed by eliminating such property from
such computation, and (ii) subtracting such recomputed
credit from the amount of credit previously allowed. For
the purposes of this paragraph (6), a reduction of the
basis of qualified property resulting from a
redetermination of the purchase price shall be deemed a
disposition of qualified property to the extent of such
reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under Section
18-183 of the Property Tax Code, the tax imposed under
subsections (a) and (b) of this Section shall be increased
for the taxable year in which the taxpayer relocated its
facility by an amount equal to the amount of credit
received by the taxpayer under this subsection (h).
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a) and
(b) of this Section for the tax imposed by subsections (c) and
(d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections (a)
and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by subsections
(a) and (b) of the 5 taxable years following the excess credit
year, provided that no credit may be carried forward to any
year ending on or after December 31, 2003. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from more
than one tax year that is available to offset a liability the
earliest credit arising under this subsection shall be applied
first.
If, during any taxable year ending on or after December 31,
1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such taxable
year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed outside
of Illinois by a taxpayer, for educational or vocational
training in semi-technical or technical fields or semi-skilled
or skilled fields, which were deducted from gross income in the
computation of taxable income. The credit against the tax
imposed by subsections (a) and (b) shall be 1.6% of such
training expenses. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection (j) to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
Any credit allowed under this subsection which is unused in
the year the credit is earned may be carried forward to each of
the 5 taxable years following the year for which the credit is
first computed until it is used. This credit shall be applied
first to the earliest year for which there is a liability. If
there is a credit under this subsection from more than one tax
year that is available to offset a liability the earliest
credit arising under this subsection shall be applied first. No
carryforward credit may be claimed in any tax year ending on or
after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2022 January 1, 2016, a
taxpayer shall be allowed a credit against the tax imposed by
subsections (a) and (b) of this Section for increasing research
activities in this State. The credit allowed against the tax
imposed by subsections (a) and (b) shall be equal to 6 1/2% of
the qualifying expenditures for increasing research activities
in this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures for
increasing research activities in this State" means the excess
of qualifying expenditures for the taxable year in which
incurred over qualifying expenditures for the base period,
"qualifying expenditures for the base period" means the average
of the qualifying expenditures for each year in the base
period, and "base period" means the 3 taxable years immediately
preceding the taxable year for which the determination is being
made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever occurs
first; provided that no credit earned in a tax year ending
prior to December 31, 2003 may be carried forward to any year
ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from this amendatory Act of the
91st General Assembly in construing this Section for taxable
years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2022, including, but not
limited to, the period beginning on January 1, 2016 and ending
on the effective date of this amendatory Act of the 100th
General Assembly. All actions taken in reliance on the
continuation of the credit under this subsection (k) by any
taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and on
or before December 31, 2001, a taxpayer shall be allowed a
credit against the tax imposed by subsections (a) and (b)
of this Section for certain amounts paid for unreimbursed
eligible remediation costs, as specified in this
subsection. For purposes of this Section, "unreimbursed
eligible remediation costs" means costs approved by the
Illinois Environmental Protection Agency ("Agency") under
Section 58.14 of the Environmental Protection Act that were
paid in performing environmental remediation at a site for
which a No Further Remediation Letter was issued by the
Agency and recorded under Section 58.10 of the
Environmental Protection Act. The credit must be claimed
for the taxable year in which Agency approval of the
eligible remediation costs is granted. The credit is not
available to any taxpayer if the taxpayer or any related
party caused or contributed to, in any material respect, a
release of regulated substances on, in, or under the site
that was identified and addressed by the remedial action
pursuant to the Site Remediation Program of the
Environmental Protection Act. After the Pollution Control
Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue Code
and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of being
a related taxpayer, as well as any of its partners. The
credit allowed against the tax imposed by subsections (a)
and (b) shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site, except
that the $100,000 threshold shall not apply to any site
contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year with
a maximum total of $150,000 per site. For partners and
shareholders of subchapter S corporations, there shall be
allowed a credit under this subsection to be determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability, the earliest credit arising under this
subsection shall be applied first. A credit allowed under
this subsection may be sold to a buyer as part of a sale of
all or part of the remediation site for which the credit
was granted. The purchaser of a remediation site and the
tax credit shall succeed to the unused credit and remaining
carry-forward period of the seller. To perfect the
transfer, the assignor shall record the transfer in the
chain of title for the site and provide written notice to
the Director of the Illinois Department of Revenue of the
assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the custodian
of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this
Section for qualified education expenses incurred on behalf of
the qualifying pupils. The credit shall be equal to 25% of
qualified education expenses, but in no event may the total
credit under this subsection claimed by a family that is the
custodian of qualifying pupils exceed (i) $500 for tax years
ending prior to December 31, 2017, and (ii) $750 for tax years
ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten through
twelfth grade education program at any school, as defined in
this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify for
the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31, 2006,
a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval of
the eligible remediation costs is granted. The credit is
not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or under
the site that was identified and addressed by the remedial
action pursuant to the Site Remediation Program of the
Environmental Protection Act. Determinations as to credit
availability for purposes of this Section shall be made
consistent with rules adopted by the Pollution Control
Board pursuant to the Illinois Administrative Procedure
Act for the administration and enforcement of Section 58.9
of the Environmental Protection Act. For purposes of this
Section, "taxpayer" includes a person whose tax attributes
the taxpayer has succeeded to under Section 381 of the
Internal Revenue Code and "related party" includes the
persons disallowed a deduction for losses by paragraphs
(b), (c), and (f)(1) of Section 267 of the Internal Revenue
Code by virtue of being a related taxpayer, as well as any
of its partners. The credit allowed against the tax imposed
by subsections (a) and (b) shall be equal to 25% of the
unreimbursed eligible remediation costs in excess of
$100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability, the earliest credit arising under this
subsection shall be applied first. A credit allowed under
this subsection may be sold to a buyer as part of a sale of
all or part of the remediation site for which the credit
was granted. The purchaser of a remediation site and the
tax credit shall succeed to the unused credit and remaining
carry-forward period of the seller. To perfect the
transfer, the assignor shall record the transfer in the
chain of title for the site and provide written notice to
the Director of the Illinois Department of Revenue of the
assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Pilot Program, a surcharge is imposed on
all taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Pilot Program Act. The amount of the surcharge
is equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Pilot Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in which
no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
eff. 7-16-14.)
(35 ILCS 5/202.5)
Sec. 202.5. Net income attributable to the period beginning
prior to the first day of a month and ending after the last day
of the preceding month January 1 of any year and ending after
December 31 of the preceding year.
(a) In general. With respect to the taxable year of a
taxpayer beginning prior to the first day of a month and ending
after the last day of the preceding month January 1 of any year
and ending after December 31 of the preceding year, net income
for the period after the last day of the preceding month
December 31 of the preceding year, is that amount that bears
the same ratio to the taxpayer's net income for the entire
taxable year as the number of days in that taxable year after
the last day of the preceding month December 31 bears to the
total number of days in that taxable year, and the net income
for the period prior to the first day of the month January 1 is
that amount that bears the same ratio to the taxpayer's net
income for the entire taxable year as the number of days in
that taxable year prior to the first day of the month January 1
bears to the total number of days in that taxable year.
(b) Election to attribute income and deduction items
specifically to the respective portions of a taxable year prior
to the first day of a month and ending after the last day of the
preceding month January 1 of any year and after December 31 of
the preceding year. In the case of a taxpayer with a taxable
year beginning prior to the first day of a month and ending
after the last day of the preceding month January 1 of any year
and ending after December 31 of the preceding year, the
taxpayer may elect, instead of the procedure established in
subsection (a) of this Section, to determine net income on a
specific accounting basis for the 2 portions of the taxable
year:
(1) from the beginning of the taxable year through the
last day of that apportionment period December 31; and
(2) from the first day of the next apportionment period
January 1 through the end of the taxable year.
The election provided by this subsection must be made in
the form and manner that the Department requires by rule, and
must be made no later than the due date (including any
extensions thereof) for the filing of the return for the
taxable year, and is irrevocable.
(c) If the taxpayer elects specific accounting under
subsection (b):
(1) there shall be taken into account in computing base
income for each of the 2 portions of the taxable year only
those items earned, received, paid, incurred or accrued in
each such period;
(2) for purposes of apportioning business income of the
taxpayer, the provisions in Article 3 shall be applied on
the basis of the taxpayer's full taxable year, without
regard to this Section;
(3) the exemption provided by Section 204 shall be
divided between the respective periods in amounts which
bear the same ratio to the total exemption allowable under
Section 204 (determined without regard to this Section) as
the total number of days in each period bears to the total
number of days in the taxable year;
(4) for purposes of this subsection, net income may not
be negative for either of the two portions of the taxable
year and positive for the other; if net income for one
portion of the taxable year would be positive and net
income for the other portion would otherwise be negative,
the net income for the entire taxable year shall be
attributed to the portion of the taxable year with positive
net income and the net income for the other portion of the
taxable year shall be zero; and
(5) the net loss carryforward deduction for the taxable
year under Section 207 may not exceed combined net income
of both portions of the taxable year, and shall be used
against the net income of the portion of the taxable year
from the beginning of the taxable year through the last day
of the preceding month December 31 before any remaining
amount is used against the net income of the latter portion
of the taxable year.
(Source: P.A. 96-1496, eff. 1-13-11.)
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
Sec. 203. Base income defined.
(a) Individuals.
(1) In general. In the case of an individual, base
income means an amount equal to the taxpayer's adjusted
gross income for the taxable year as modified by paragraph
(2).
(2) Modifications. The adjusted gross income referred
to in paragraph (1) shall be modified by adding thereto the
sum of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of adjusted gross income, except
stock dividends of qualified public utilities
described in Section 305(e) of the Internal Revenue
Code;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of adjusted gross income for the
taxable year;
(C) An amount equal to the amount received during
the taxable year as a recovery or refund of real
property taxes paid with respect to the taxpayer's
principal residence under the Revenue Act of 1939 and
for which a deduction was previously taken under
subparagraph (L) of this paragraph (2) prior to July 1,
1991, the retrospective application date of Article 4
of Public Act 87-17. In the case of multi-unit or
multi-use structures and farm dwellings, the taxes on
the taxpayer's principal residence shall be that
portion of the total taxes for the entire property
which is attributable to such principal residence;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of adjusted gross income;
(D-5) An amount, to the extent not included in
adjusted gross income, equal to the amount of money
withdrawn by the taxpayer in the taxable year from a
medical care savings account and the interest earned on
the account in the taxable year of a withdrawal
pursuant to subsection (b) of Section 20 of the Medical
Care Savings Account Act or subsection (b) of Section
20 of the Medical Care Savings Account Act of 2000;
(D-10) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation costs
that the individual deducted in computing adjusted
gross income and for which the individual claims a
credit under subsection (l) of Section 201;
(D-15) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code;
(D-16) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (Z) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (Z), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-17) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income under Sections 951 through 964
of the Internal Revenue Code and amounts included in
gross income under Section 78 of the Internal Revenue
Code) with respect to the stock of the same person to
whom the interest was paid, accrued, or incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(D-18) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income under Sections 951 through 964 of the Internal
Revenue Code and amounts included in gross income under
Section 78 of the Internal Revenue Code) with respect
to the stock of the same person to whom the intangible
expenses and costs were directly or indirectly paid,
incurred, or accrued. The preceding sentence does not
apply to the extent that the same dividends caused a
reduction to the addition modification required under
Section 203(a)(2)(D-17) of this Act. As used in this
subparagraph, the term "intangible expenses and costs"
includes (1) expenses, losses, and costs for, or
related to, the direct or indirect acquisition, use,
maintenance or management, ownership, sale, exchange,
or any other disposition of intangible property; (2)
losses incurred, directly or indirectly, from
factoring transactions or discounting transactions;
(3) royalty, patent, technical, and copyright fees;
(4) licensing fees; and (5) other similar expenses and
costs. For purposes of this subparagraph, "intangible
property" includes patents, patent applications, trade
names, trademarks, service marks, copyrights, mask
works, trade secrets, and similar types of intangible
assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is
subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(D-19) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that
the same dividends caused a reduction to the addition
modification required under Section 203(a)(2)(D-17) or
Section 203(a)(2)(D-18) of this Act.
(D-20) For taxable years beginning on or after
January 1, 2002 and ending on or before December 31,
2006, in the case of a distribution from a qualified
tuition program under Section 529 of the Internal
Revenue Code, other than (i) a distribution from a
College Savings Pool created under Section 16.5 of the
State Treasurer Act or (ii) a distribution from the
Illinois Prepaid Tuition Trust Fund, an amount equal to
the amount excluded from gross income under Section
529(c)(3)(B). For taxable years beginning on or after
January 1, 2007, in the case of a distribution from a
qualified tuition program under Section 529 of the
Internal Revenue Code, other than (i) a distribution
from a College Savings Pool created under Section 16.5
of the State Treasurer Act, (ii) a distribution from
the Illinois Prepaid Tuition Trust Fund, or (iii) a
distribution from a qualified tuition program under
Section 529 of the Internal Revenue Code that (I)
adopts and determines that its offering materials
comply with the College Savings Plans Network's
disclosure principles and (II) has made reasonable
efforts to inform in-state residents of the existence
of in-state qualified tuition programs by informing
Illinois residents directly and, where applicable, to
inform financial intermediaries distributing the
program to inform in-state residents of the existence
of in-state qualified tuition programs at least
annually, an amount equal to the amount excluded from
gross income under Section 529(c)(3)(B).
For the purposes of this subparagraph (D-20), a
qualified tuition program has made reasonable efforts
if it makes disclosures (which may use the term
"in-state program" or "in-state plan" and need not
specifically refer to Illinois or its qualified
programs by name) (i) directly to prospective
participants in its offering materials or makes a
public disclosure, such as a website posting; and (ii)
where applicable, to intermediaries selling the
out-of-state program in the same manner that the
out-of-state program distributes its offering
materials;
(D-21) For taxable years beginning on or after
January 1, 2007, in the case of transfer of moneys from
a qualified tuition program under Section 529 of the
Internal Revenue Code that is administered by the State
to an out-of-state program, an amount equal to the
amount of moneys previously deducted from base income
under subsection (a)(2)(Y) of this Section;
(D-22) For taxable years beginning on or after
January 1, 2009, in the case of a nonqualified
withdrawal or refund of moneys from a qualified tuition
program under Section 529 of the Internal Revenue Code
administered by the State that is not used for
qualified expenses at an eligible education
institution, an amount equal to the contribution
component of the nonqualified withdrawal or refund
that was previously deducted from base income under
subsection (a)(2)(y) of this Section, provided that
the withdrawal or refund did not result from the
beneficiary's death or disability;
(D-23) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-24) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the sum of the
following amounts:
(E) For taxable years ending before December 31,
2001, any amount included in such total in respect of
any compensation (including but not limited to any
compensation paid or accrued to a serviceman while a
prisoner of war or missing in action) paid to a
resident by reason of being on active duty in the Armed
Forces of the United States and in respect of any
compensation paid or accrued to a resident who as a
governmental employee was a prisoner of war or missing
in action, and in respect of any compensation paid to a
resident in 1971 or thereafter for annual training
performed pursuant to Sections 502 and 503, Title 32,
United States Code as a member of the Illinois National
Guard or, beginning with taxable years ending on or
after December 31, 2007, the National Guard of any
other state. For taxable years ending on or after
December 31, 2001, any amount included in such total in
respect of any compensation (including but not limited
to any compensation paid or accrued to a serviceman
while a prisoner of war or missing in action) paid to a
resident by reason of being a member of any component
of the Armed Forces of the United States and in respect
of any compensation paid or accrued to a resident who
as a governmental employee was a prisoner of war or
missing in action, and in respect of any compensation
paid to a resident in 2001 or thereafter by reason of
being a member of the Illinois National Guard or,
beginning with taxable years ending on or after
December 31, 2007, the National Guard of any other
state. The provisions of this subparagraph (E) are
exempt from the provisions of Section 250;
(F) An amount equal to all amounts included in such
total pursuant to the provisions of Sections 402(a),
402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the
Internal Revenue Code, or included in such total as
distributions under the provisions of any retirement
or disability plan for employees of any governmental
agency or unit, or retirement payments to retired
partners, which payments are excluded in computing net
earnings from self employment by Section 1402 of the
Internal Revenue Code and regulations adopted pursuant
thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(I) An amount equal to all amounts included in such
total pursuant to the provisions of Section 111 of the
Internal Revenue Code as a recovery of items previously
deducted from adjusted gross income in the computation
of taxable income;
(J) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act, and conducts
substantially all of its operations in a River Edge
Redevelopment Zone or zones. This subparagraph (J) is
exempt from the provisions of Section 250;
(K) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (J) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (K);
(L) For taxable years ending after December 31,
1983, an amount equal to all social security benefits
and railroad retirement benefits included in such
total pursuant to Sections 72(r) and 86 of the Internal
Revenue Code;
(M) With the exception of any amounts subtracted
under subparagraph (N), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a) (2), and 265(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections 171(a)(2),
265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue
Code, plus, for taxable years ending on or after
December 31, 2011, Section 45G(e)(3) of the Internal
Revenue Code and, for taxable years ending on or after
December 31, 2008, any amount included in gross income
under Section 87 of the Internal Revenue Code; the
provisions of this subparagraph are exempt from the
provisions of Section 250;
(N) An amount equal to all amounts included in such
total which are exempt from taxation by this State
either by reason of its statutes or Constitution or by
reason of the Constitution, treaties or statutes of the
United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest net
of bond premium amortization;
(O) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code or of any itemized deduction
taken from adjusted gross income in the computation of
taxable income for restoration of substantial amounts
held under claim of right for the taxable year;
(Q) An amount equal to any amounts included in such
total, received by the taxpayer as an acceleration in
the payment of life, endowment or annuity benefits in
advance of the time they would otherwise be payable as
an indemnity for a terminal illness;
(R) An amount equal to the amount of any federal or
State bonus paid to veterans of the Persian Gulf War;
(S) An amount, to the extent included in adjusted
gross income, equal to the amount of a contribution
made in the taxable year on behalf of the taxpayer to a
medical care savings account established under the
Medical Care Savings Account Act or the Medical Care
Savings Account Act of 2000 to the extent the
contribution is accepted by the account administrator
as provided in that Act;
(T) An amount, to the extent included in adjusted
gross income, equal to the amount of interest earned in
the taxable year on a medical care savings account
established under the Medical Care Savings Account Act
or the Medical Care Savings Account Act of 2000 on
behalf of the taxpayer, other than interest added
pursuant to item (D-5) of this paragraph (2);
(U) For one taxable year beginning on or after
January 1, 1994, an amount equal to the total amount of
tax imposed and paid under subsections (a) and (b) of
Section 201 of this Act on grant amounts received by
the taxpayer under the Nursing Home Grant Assistance
Act during the taxpayer's taxable years 1992 and 1993;
(V) Beginning with tax years ending on or after
December 31, 1995 and ending with tax years ending on
or before December 31, 2004, an amount equal to the
amount paid by a taxpayer who is a self-employed
taxpayer, a partner of a partnership, or a shareholder
in a Subchapter S corporation for health insurance or
long-term care insurance for that taxpayer or that
taxpayer's spouse or dependents, to the extent that the
amount paid for that health insurance or long-term care
insurance may be deducted under Section 213 of the
Internal Revenue Code, has not been deducted on the
federal income tax return of the taxpayer, and does not
exceed the taxable income attributable to that
taxpayer's income, self-employment income, or
Subchapter S corporation income; except that no
deduction shall be allowed under this item (V) if the
taxpayer is eligible to participate in any health
insurance or long-term care insurance plan of an
employer of the taxpayer or the taxpayer's spouse. The
amount of the health insurance and long-term care
insurance subtracted under this item (V) shall be
determined by multiplying total health insurance and
long-term care insurance premiums paid by the taxpayer
times a number that represents the fractional
percentage of eligible medical expenses under Section
213 of the Internal Revenue Code of 1986 not actually
deducted on the taxpayer's federal income tax return;
(W) For taxable years beginning on or after January
1, 1998, all amounts included in the taxpayer's federal
gross income in the taxable year from amounts converted
from a regular IRA to a Roth IRA. This paragraph is
exempt from the provisions of Section 250;
(X) For taxable year 1999 and thereafter, an amount
equal to the amount of any (i) distributions, to the
extent includible in gross income for federal income
tax purposes, made to the taxpayer because of his or
her status as a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds receivable
as insurance under policies issued to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime by European insurance
companies immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets acquired
with such assets or with the proceeds from the sale of
such assets; provided, further, this paragraph shall
only apply to a taxpayer who was the first recipient of
such assets after their recovery and who is a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime or as an heir of the
victim. The amount of and the eligibility for any
public assistance, benefit, or similar entitlement is
not affected by the inclusion of items (i) and (ii) of
this paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the provisions
of Section 250;
(Y) For taxable years beginning on or after January
1, 2002 and ending on or before December 31, 2004,
moneys contributed in the taxable year to a College
Savings Pool account under Section 16.5 of the State
Treasurer Act, except that amounts excluded from gross
income under Section 529(c)(3)(C)(i) of the Internal
Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For taxable
years beginning on or after January 1, 2005, a maximum
of $10,000 contributed in the taxable year to (i) a
College Savings Pool account under Section 16.5 of the
State Treasurer Act or (ii) the Illinois Prepaid
Tuition Trust Fund, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For purposes
of this subparagraph, contributions made by an
employer on behalf of an employee, or matching
contributions made by an employee, shall be treated as
made by the employee. This subparagraph (Y) is exempt
from the provisions of Section 250;
(Z) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (Z) is exempt from the provisions of
Section 250;
(AA) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-15), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one
piece of property.
This subparagraph (AA) is exempt from the
provisions of Section 250;
(BB) Any amount included in adjusted gross income,
other than salary, received by a driver in a
ridesharing arrangement using a motor vehicle;
(CC) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of that addition modification, and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of that
addition modification. This subparagraph (CC) is
exempt from the provisions of Section 250;
(DD) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(a)(2)(D-17) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (DD)
is exempt from the provisions of Section 250;
(EE) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(a)(2)(D-18) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same foreign
person. This subparagraph (EE) is exempt from the
provisions of Section 250;
(FF) An amount equal to any amount awarded to the
taxpayer during the taxable year by the Court of Claims
under subsection (c) of Section 8 of the Court of
Claims Act for time unjustly served in a State prison.
This subparagraph (FF) is exempt from the provisions of
Section 250; and
(GG) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(a)(2)(D-19), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or
loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (GG),
the insurer to which the premiums were paid must add
back to income the amount subtracted by the taxpayer
pursuant to this subparagraph (GG). This subparagraph
(GG) is exempt from the provisions of Section 250.
(b) Corporations.
(1) In general. In the case of a corporation, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest and all distributions
received from regulated investment companies during
the taxable year to the extent excluded from gross
income in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of taxable income for the taxable year;
(C) In the case of a regulated investment company,
an amount equal to the excess of (i) the net long-term
capital gain for the taxable year, over (ii) the amount
of the capital gain dividends designated as such in
accordance with Section 852(b)(3)(C) of the Internal
Revenue Code and any amount designated under Section
852(b)(3)(D) of the Internal Revenue Code,
attributable to the taxable year (this amendatory Act
of 1995 (Public Act 89-89) is declarative of existing
law and is not a new enactment);
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating loss
carryback or carryforward from a taxable year ending
prior to December 31, 1986 is an element of taxable
income under paragraph (1) of subsection (e) or
subparagraph (E) of paragraph (2) of subsection (e),
the amount by which addition modifications other than
those provided by this subparagraph (E) exceeded
subtraction modifications in such earlier taxable
year, with the following limitations applied in the
order that they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount of
addition modification under this subparagraph (E)
which related to that net operating loss and which
was taken into account in calculating the base
income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net operating
loss carryback or carryforward from more than one other
taxable year ending prior to December 31, 1986, the
addition modification provided in this subparagraph
(E) shall be the sum of the amounts computed
independently under the preceding provisions of this
subparagraph (E) for each such taxable year;
(E-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation costs
that the corporation deducted in computing adjusted
gross income and for which the corporation claims a
credit under subsection (l) of Section 201;
(E-10) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code;
(E-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (E-10), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (T) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (T), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(E-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of the
same person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(E-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(b)(2)(E-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is
subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(E-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that
the same dividends caused a reduction to the addition
modification required under Section 203(b)(2)(E-12) or
Section 203(b)(2)(E-13) of this Act;
(E-15) For taxable years beginning after December
31, 2008, any deduction for dividends paid by a captive
real estate investment trust that is allowed to a real
estate investment trust under Section 857(b)(2)(B) of
the Internal Revenue Code for dividends paid;
(E-16) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(E-17) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the sum of the
following amounts:
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to any amount included in such
total under Section 78 of the Internal Revenue Code;
(H) In the case of a regulated investment company,
an amount equal to the amount of exempt interest
dividends as defined in subsection (b) (5) of Section
852 of the Internal Revenue Code, paid to shareholders
for the taxable year;
(I) With the exception of any amounts subtracted
under subparagraph (J), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a) (2), and 265(a)(2) and amounts disallowed as
interest expense by Section 291(a)(3) of the Internal
Revenue Code, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(a)(1) of the Internal Revenue Code; and (ii) for
taxable years ending on or after August 13, 1999,
Sections 171(a)(2), 265, 280C, 291(a)(3), and
832(b)(5)(B)(i) of the Internal Revenue Code, plus,
for tax years ending on or after December 31, 2011,
amounts disallowed as deductions by Section 45G(e)(3)
of the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code and the policyholders' share of
tax-exempt interest of a life insurance company under
Section 807(a)(2)(B) of the Internal Revenue Code (in
the case of a life insurance company with gross income
from a decrease in reserves for the tax year) or
Section 807(b)(1)(B) of the Internal Revenue Code (in
the case of a life insurance company allowed a
deduction for an increase in reserves for the tax
year); the provisions of this subparagraph are exempt
from the provisions of Section 250;
(J) An amount equal to all amounts included in such
total which are exempt from taxation by this State
either by reason of its statutes or Constitution or by
reason of the Constitution, treaties or statutes of the
United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest net
of bond premium amortization;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from the
provisions of Section 250;
(L) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph 2 of this subsection
shall not be eligible for the deduction provided under
this subparagraph (L);
(M) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the River Edge
Redevelopment Zone Investment Credit. To determine the
portion of a loan or loans that is secured by property
eligible for a Section 201(f) investment credit to the
borrower, the entire principal amount of the loan or
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(f) investment
credit property which secures the loan or loans, using
for this purpose the original basis of such property on
the date that it was placed in service in the River
Edge Redevelopment Zone. The subtraction modification
available to taxpayer in any year under this subsection
shall be that portion of the total interest paid by the
borrower with respect to such loan attributable to the
eligible property as calculated under the previous
sentence. This subparagraph (M) is exempt from the
provisions of Section 250;
(M-1) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the High Impact Business
Investment Credit. To determine the portion of a loan
or loans that is secured by property eligible for a
Section 201(h) investment credit to the borrower, the
entire principal amount of the loan or loans between
the taxpayer and the borrower should be divided into
the basis of the Section 201(h) investment credit
property which secures the loan or loans, using for
this purpose the original basis of such property on the
date that it was placed in service in a federally
designated Foreign Trade Zone or Sub-Zone located in
Illinois. No taxpayer that is eligible for the
deduction provided in subparagraph (M) of paragraph
(2) of this subsection shall be eligible for the
deduction provided under this subparagraph (M-1). The
subtraction modification available to taxpayers in any
year under this subsection shall be that portion of the
total interest paid by the borrower with respect to
such loan attributable to the eligible property as
calculated under the previous sentence;
(N) Two times any contribution made during the
taxable year to a designated zone organization to the
extent that the contribution (i) qualifies as a
charitable contribution under subsection (c) of
Section 170 of the Internal Revenue Code and (ii) must,
by its terms, be used for a project approved by the
Department of Commerce and Economic Opportunity under
Section 11 of the Illinois Enterprise Zone Act or under
Section 10-10 of the River Edge Redevelopment Zone Act.
This subparagraph (N) is exempt from the provisions of
Section 250;
(O) An amount equal to: (i) 85% for taxable years
ending on or before December 31, 1992, or, a percentage
equal to the percentage allowable under Section
243(a)(1) of the Internal Revenue Code of 1986 for
taxable years ending after December 31, 1992, of the
amount by which dividends included in taxable income
and received from a corporation that is not created or
organized under the laws of the United States or any
state or political subdivision thereof, including, for
taxable years ending on or after December 31, 1988,
dividends received or deemed received or paid or deemed
paid under Sections 951 through 965 of the Internal
Revenue Code, exceed the amount of the modification
provided under subparagraph (G) of paragraph (2) of
this subsection (b) which is related to such dividends,
and including, for taxable years ending on or after
December 31, 2008, dividends received from a captive
real estate investment trust; plus (ii) 100% of the
amount by which dividends, included in taxable income
and received, including, for taxable years ending on or
after December 31, 1988, dividends received or deemed
received or paid or deemed paid under Sections 951
through 964 of the Internal Revenue Code and including,
for taxable years ending on or after December 31, 2008,
dividends received from a captive real estate
investment trust, from any such corporation specified
in clause (i) that would but for the provisions of
Section 1504 (b) (3) of the Internal Revenue Code be
treated as a member of the affiliated group which
includes the dividend recipient, exceed the amount of
the modification provided under subparagraph (G) of
paragraph (2) of this subsection (b) which is related
to such dividends. This subparagraph (O) is exempt from
the provisions of Section 250 of this Act;
(P) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(Q) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(R) On and after July 20, 1999, in the case of an
attorney-in-fact with respect to whom an interinsurer
or a reciprocal insurer has made the election under
Section 835 of the Internal Revenue Code, 26 U.S.C.
835, an amount equal to the excess, if any, of the
amounts paid or incurred by that interinsurer or
reciprocal insurer in the taxable year to the
attorney-in-fact over the deduction allowed to that
interinsurer or reciprocal insurer with respect to the
attorney-in-fact under Section 835(b) of the Internal
Revenue Code for the taxable year; the provisions of
this subparagraph are exempt from the provisions of
Section 250;
(S) For taxable years ending on or after December
31, 1997, in the case of a Subchapter S corporation, an
amount equal to all amounts of income allocable to a
shareholder subject to the Personal Property Tax
Replacement Income Tax imposed by subsections (c) and
(d) of Section 201 of this Act, including amounts
allocable to organizations exempt from federal income
tax by reason of Section 501(a) of the Internal Revenue
Code. This subparagraph (S) is exempt from the
provisions of Section 250;
(T) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (T) is exempt from the provisions of
Section 250;
(U) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one
piece of property.
This subparagraph (U) is exempt from the
provisions of Section 250;
(V) The amount of: (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification, (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification, and (iii) any insurance premium
income (net of deductions allocable thereto) taken
into account for the taxable year with respect to a
transaction with a taxpayer that is required to make an
addition modification with respect to such transaction
under Section 203(a)(2)(D-19), Section
203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
203(d)(2)(D-9), but not to exceed the amount of that
addition modification. This subparagraph (V) is exempt
from the provisions of Section 250;
(W) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(b)(2)(E-12) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (W)
is exempt from the provisions of Section 250;
(X) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(b)(2)(E-13) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same foreign
person. This subparagraph (X) is exempt from the
provisions of Section 250;
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(b)(2)(E-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or
loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (Y), the
insurer to which the premiums were paid must add back
to income the amount subtracted by the taxpayer
pursuant to this subparagraph (Y). This subparagraph
(Y) is exempt from the provisions of Section 250; and
(Z) The difference between the nondeductible
controlled foreign corporation dividends under Section
965(e)(3) of the Internal Revenue Code over the taxable
income of the taxpayer, computed without regard to
Section 965(e)(2)(A) of the Internal Revenue Code, and
without regard to any net operating loss deduction.
This subparagraph (Z) is exempt from the provisions of
Section 250.
(3) Special rule. For purposes of paragraph (2) (A),
"gross income" in the case of a life insurance company, for
tax years ending on and after December 31, 1994, and prior
to December 31, 2011, shall mean the gross investment
income for the taxable year and, for tax years ending on or
after December 31, 2011, shall mean all amounts included in
life insurance gross income under Section 803(a)(3) of the
Internal Revenue Code.
(c) Trusts and estates.
(1) In general. In the case of a trust or estate, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. Subject to the provisions of
paragraph (3), the taxable income referred to in paragraph
(1) shall be modified by adding thereto the sum of the
following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) In the case of (i) an estate, $600; (ii) a
trust which, under its governing instrument, is
required to distribute all of its income currently,
$300; and (iii) any other trust, $100, but in each such
case, only to the extent such amount was deducted in
the computation of taxable income;
(C) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of taxable income for the taxable year;
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating loss
carryback or carryforward from a taxable year ending
prior to December 31, 1986 is an element of taxable
income under paragraph (1) of subsection (e) or
subparagraph (E) of paragraph (2) of subsection (e),
the amount by which addition modifications other than
those provided by this subparagraph (E) exceeded
subtraction modifications in such taxable year, with
the following limitations applied in the order that
they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount of
addition modification under this subparagraph (E)
which related to that net operating loss and which
was taken into account in calculating the base
income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net operating
loss carryback or carryforward from more than one other
taxable year ending prior to December 31, 1986, the
addition modification provided in this subparagraph
(E) shall be the sum of the amounts computed
independently under the preceding provisions of this
subparagraph (E) for each such taxable year;
(F) For taxable years ending on or after January 1,
1989, an amount equal to the tax deducted pursuant to
Section 164 of the Internal Revenue Code if the trust
or estate is claiming the same tax for purposes of the
Illinois foreign tax credit under Section 601 of this
Act;
(G) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(G-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation costs
that the trust or estate deducted in computing adjusted
gross income and for which the trust or estate claims a
credit under subsection (l) of Section 201;
(G-10) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code; and
(G-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (G-10), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (R) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (R), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(G-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that the foreign person's business activity
outside the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of the
same person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(G-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(c)(2)(G-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes: (1)
expenses, losses, and costs for or related to the
direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other
disposition of intangible property; (2) losses
incurred, directly or indirectly, from factoring
transactions or discounting transactions; (3) royalty,
patent, technical, and copyright fees; (4) licensing
fees; and (5) other similar expenses and costs. For
purposes of this subparagraph, "intangible property"
includes patents, patent applications, trade names,
trademarks, service marks, copyrights, mask works,
trade secrets, and similar types of intangible assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is
subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(G-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that
the same dividends caused a reduction to the addition
modification required under Section 203(c)(2)(G-12) or
Section 203(c)(2)(G-13) of this Act;
(G-15) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(G-16) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the sum of the
following amounts:
(H) An amount equal to all amounts included in such
total pursuant to the provisions of Sections 402(a),
402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the
Internal Revenue Code or included in such total as
distributions under the provisions of any retirement
or disability plan for employees of any governmental
agency or unit, or retirement payments to retired
partners, which payments are excluded in computing net
earnings from self employment by Section 1402 of the
Internal Revenue Code and regulations adopted pursuant
thereto;
(I) The valuation limitation amount;
(J) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(K) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C), (D), (E), (F) and (G) which are exempt from
taxation by this State either by reason of its statutes
or Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that
exempts income derived from bonds or other obligations
from the tax imposed under this Act, the amount
exempted shall be the interest net of bond premium
amortization;
(L) With the exception of any amounts subtracted
under subparagraph (K), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a) (2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections 171(a)(2),
265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue
Code, plus, (iii) for taxable years ending on or after
December 31, 2011, Section 45G(e)(3) of the Internal
Revenue Code and, for taxable years ending on or after
December 31, 2008, any amount included in gross income
under Section 87 of the Internal Revenue Code; the
provisions of this subparagraph are exempt from the
provisions of Section 250;
(M) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (M) is exempt from the
provisions of Section 250;
(N) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(O) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (M) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (O);
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(Q) For taxable year 1999 and thereafter, an amount
equal to the amount of any (i) distributions, to the
extent includible in gross income for federal income
tax purposes, made to the taxpayer because of his or
her status as a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds receivable
as insurance under policies issued to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime by European insurance
companies immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets acquired
with such assets or with the proceeds from the sale of
such assets; provided, further, this paragraph shall
only apply to a taxpayer who was the first recipient of
such assets after their recovery and who is a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime or as an heir of the
victim. The amount of and the eligibility for any
public assistance, benefit, or similar entitlement is
not affected by the inclusion of items (i) and (ii) of
this paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the provisions
of Section 250;
(R) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (R) is exempt from the provisions of
Section 250;
(S) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one
piece of property.
This subparagraph (S) is exempt from the
provisions of Section 250;
(T) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (T) is exempt
from the provisions of Section 250;
(U) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(c)(2)(G-12) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (U)
is exempt from the provisions of Section 250;
(V) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(c)(2)(G-13) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same foreign
person. This subparagraph (V) is exempt from the
provisions of Section 250;
(W) in the case of an estate, an amount equal to
all amounts included in such total pursuant to the
provisions of Section 111 of the Internal Revenue Code
as a recovery of items previously deducted by the
decedent from adjusted gross income in the computation
of taxable income. This subparagraph (W) is exempt from
Section 250;
(X) an amount equal to the refund included in such
total of any tax deducted for federal income tax
purposes, to the extent that deduction was added back
under subparagraph (F). This subparagraph (X) is
exempt from the provisions of Section 250; and
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(c)(2)(G-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or
loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (Y), the
insurer to which the premiums were paid must add back
to income the amount subtracted by the taxpayer
pursuant to this subparagraph (Y). This subparagraph
(Y) is exempt from the provisions of Section 250.
(3) Limitation. The amount of any modification
otherwise required under this subsection shall, under
regulations prescribed by the Department, be adjusted by
any amounts included therein which were properly paid,
credited, or required to be distributed, or permanently set
aside for charitable purposes pursuant to Internal Revenue
Code Section 642(c) during the taxable year.
(d) Partnerships.
(1) In general. In the case of a partnership, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income for
the taxable year;
(C) The amount of deductions allowed to the
partnership pursuant to Section 707 (c) of the Internal
Revenue Code in calculating its taxable income;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(D-5) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of the
Internal Revenue Code;
(D-6) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-5), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (O) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was allowed in any taxable year to make a subtraction
modification under subparagraph (O), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-7) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of the
same person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract or
agreement entered into at arm's-length rates and
terms and the principal purpose for the payment is
not federal or Illinois tax avoidance; or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act; and
(D-8) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(d)(2)(D-7) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets;
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who is
subject in a foreign country or state, other than a
state which requires mandatory unitary reporting,
to a tax on or measured by net income with respect
to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if the
taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an alternative
method of apportionment under Section 304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act for
any tax year beginning after the effective date of
this amendment provided such adjustment is made
pursuant to regulation adopted by the Department
and such regulations provide methods and standards
by which the Department will utilize its authority
under Section 404 of this Act;
(D-9) For taxable years ending on or after December
31, 2008, an amount equal to the amount of insurance
premium expenses and costs otherwise allowed as a
deduction in computing base income, and that were paid,
accrued, or incurred, directly or indirectly, to a
person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the stock
of the same person to whom the premiums and costs were
directly or indirectly paid, incurred, or accrued. The
preceding sentence does not apply to the extent that
the same dividends caused a reduction to the addition
modification required under Section 203(d)(2)(D-7) or
Section 203(d)(2)(D-8) of this Act;
(D-10) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-11) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
and by deducting from the total so obtained the following
amounts:
(E) The valuation limitation amount;
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C) and (D) which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest net
of bond premium amortization;
(H) Any income of the partnership which
constitutes personal service income as defined in
Section 1348 (b) (1) of the Internal Revenue Code (as
in effect December 31, 1981) or a reasonable allowance
for compensation paid or accrued for services rendered
by partners to the partnership, whichever is greater;
this subparagraph (H) is exempt from the provisions of
Section 250;
(I) An amount equal to all amounts of income
distributable to an entity subject to the Personal
Property Tax Replacement Income Tax imposed by
subsections (c) and (d) of Section 201 of this Act
including amounts distributable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code; this subparagraph
(I) is exempt from the provisions of Section 250;
(J) With the exception of any amounts subtracted
under subparagraph (G), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a) (2), and 265(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections 171(a)(2),
265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue
Code, plus, (iii) for taxable years ending on or after
December 31, 2011, Section 45G(e)(3) of the Internal
Revenue Code and, for taxable years ending on or after
December 31, 2008, any amount included in gross income
under Section 87 of the Internal Revenue Code; the
provisions of this subparagraph are exempt from the
provisions of Section 250;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations from a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from the
provisions of Section 250;
(L) An amount equal to any contribution made to a
job training project established pursuant to the Real
Property Tax Increment Allocation Redevelopment Act;
(M) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated a
High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (M);
(N) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(O) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not including
the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied by
0.429); and
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0.
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (O) is exempt from the provisions of
Section 250;
(P) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which the
taxpayer may claim a depreciation deduction for
federal income tax purposes and for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction under
this subparagraph only once with respect to any one
piece of property.
This subparagraph (P) is exempt from the
provisions of Section 250;
(Q) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction with
a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer that
is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (Q) is exempt
from Section 250;
(R) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(d)(2)(D-7) for interest
paid, accrued, or incurred, directly or indirectly, to
the same person. This subparagraph (R) is exempt from
Section 250;
(S) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but for
the fact that the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(d)(2)(D-8) for
intangible expenses and costs paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (S) is exempt from Section 250; and
(T) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(d)(2)(D-9), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense or
loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer makes
the election provided for by this subparagraph (T), the
insurer to which the premiums were paid must add back
to income the amount subtracted by the taxpayer
pursuant to this subparagraph (T). This subparagraph
(T) is exempt from the provisions of Section 250.
(e) Gross income; adjusted gross income; taxable income.
(1) In general. Subject to the provisions of paragraph
(2) and subsection (b) (3), for purposes of this Section
and Section 803(e), a taxpayer's gross income, adjusted
gross income, or taxable income for the taxable year shall
mean the amount of gross income, adjusted gross income or
taxable income properly reportable for federal income tax
purposes for the taxable year under the provisions of the
Internal Revenue Code. Taxable income may be less than
zero. However, for taxable years ending on or after
December 31, 1986, net operating loss carryforwards from
taxable years ending prior to December 31, 1986, may not
exceed the sum of federal taxable income for the taxable
year before net operating loss deduction, plus the excess
of addition modifications over subtraction modifications
for the taxable year. For taxable years ending prior to
December 31, 1986, taxable income may never be an amount in
excess of the net operating loss for the taxable year as
defined in subsections (c) and (d) of Section 172 of the
Internal Revenue Code, provided that when taxable income of
a corporation (other than a Subchapter S corporation),
trust, or estate is less than zero and addition
modifications, other than those provided by subparagraph
(E) of paragraph (2) of subsection (b) for corporations or
subparagraph (E) of paragraph (2) of subsection (c) for
trusts and estates, exceed subtraction modifications, an
addition modification must be made under those
subparagraphs for any other taxable year to which the
taxable income less than zero (net operating loss) is
applied under Section 172 of the Internal Revenue Code or
under subparagraph (E) of paragraph (2) of this subsection
(e) applied in conjunction with Section 172 of the Internal
Revenue Code.
(2) Special rule. For purposes of paragraph (1) of this
subsection, the taxable income properly reportable for
federal income tax purposes shall mean:
(A) Certain life insurance companies. In the case
of a life insurance company subject to the tax imposed
by Section 801 of the Internal Revenue Code, life
insurance company taxable income, plus the amount of
distribution from pre-1984 policyholder surplus
accounts as calculated under Section 815a of the
Internal Revenue Code;
(B) Certain other insurance companies. In the case
of mutual insurance companies subject to the tax
imposed by Section 831 of the Internal Revenue Code,
insurance company taxable income;
(C) Regulated investment companies. In the case of
a regulated investment company subject to the tax
imposed by Section 852 of the Internal Revenue Code,
investment company taxable income;
(D) Real estate investment trusts. In the case of a
real estate investment trust subject to the tax imposed
by Section 857 of the Internal Revenue Code, real
estate investment trust taxable income;
(E) Consolidated corporations. In the case of a
corporation which is a member of an affiliated group of
corporations filing a consolidated income tax return
for the taxable year for federal income tax purposes,
taxable income determined as if such corporation had
filed a separate return for federal income tax purposes
for the taxable year and each preceding taxable year
for which it was a member of an affiliated group. For
purposes of this subparagraph, the taxpayer's separate
taxable income shall be determined as if the election
provided by Section 243(b) (2) of the Internal Revenue
Code had been in effect for all such years;
(F) Cooperatives. In the case of a cooperative
corporation or association, the taxable income of such
organization determined in accordance with the
provisions of Section 1381 through 1388 of the Internal
Revenue Code, but without regard to the prohibition
against offsetting losses from patronage activities
against income from nonpatronage activities; except
that a cooperative corporation or association may make
an election to follow its federal income tax treatment
of patronage losses and nonpatronage losses. In the
event such election is made, such losses shall be
computed and carried over in a manner consistent with
subsection (a) of Section 207 of this Act and
apportioned by the apportionment factor reported by
the cooperative on its Illinois income tax return filed
for the taxable year in which the losses are incurred.
The election shall be effective for all taxable years
with original returns due on or after the date of the
election. In addition, the cooperative may file an
amended return or returns, as allowed under this Act,
to provide that the election shall be effective for
losses incurred or carried forward for taxable years
occurring prior to the date of the election. Once made,
the election may only be revoked upon approval of the
Director. The Department shall adopt rules setting
forth requirements for documenting the elections and
any resulting Illinois net loss and the standards to be
used by the Director in evaluating requests to revoke
elections. Public Act 96-932 is declaratory of
existing law;
(G) Subchapter S corporations. In the case of: (i)
a Subchapter S corporation for which there is in effect
an election for the taxable year under Section 1362 of
the Internal Revenue Code, the taxable income of such
corporation determined in accordance with Section
1363(b) of the Internal Revenue Code, except that
taxable income shall take into account those items
which are required by Section 1363(b)(1) of the
Internal Revenue Code to be separately stated; and (ii)
a Subchapter S corporation for which there is in effect
a federal election to opt out of the provisions of the
Subchapter S Revision Act of 1982 and have applied
instead the prior federal Subchapter S rules as in
effect on July 1, 1982, the taxable income of such
corporation determined in accordance with the federal
Subchapter S rules as in effect on July 1, 1982; and
(H) Partnerships. In the case of a partnership,
taxable income determined in accordance with Section
703 of the Internal Revenue Code, except that taxable
income shall take into account those items which are
required by Section 703(a)(1) to be separately stated
but which would be taken into account by an individual
in calculating his taxable income.
(3) Recapture of business expenses on disposition of
asset or business. Notwithstanding any other law to the
contrary, if in prior years income from an asset or
business has been classified as business income and in a
later year is demonstrated to be non-business income, then
all expenses, without limitation, deducted in such later
year and in the 2 immediately preceding taxable years
related to that asset or business that generated the
non-business income shall be added back and recaptured as
business income in the year of the disposition of the asset
or business. Such amount shall be apportioned to Illinois
using the greater of the apportionment fraction computed
for the business under Section 304 of this Act for the
taxable year or the average of the apportionment fractions
computed for the business under Section 304 of this Act for
the taxable year and for the 2 immediately preceding
taxable years.
(f) Valuation limitation amount.
(1) In general. The valuation limitation amount
referred to in subsections (a) (2) (G), (c) (2) (I) and
(d)(2) (E) is an amount equal to:
(A) The sum of the pre-August 1, 1969 appreciation
amounts (to the extent consisting of gain reportable
under the provisions of Section 1245 or 1250 of the
Internal Revenue Code) for all property in respect of
which such gain was reported for the taxable year; plus
(B) The lesser of (i) the sum of the pre-August 1,
1969 appreciation amounts (to the extent consisting of
capital gain) for all property in respect of which such
gain was reported for federal income tax purposes for
the taxable year, or (ii) the net capital gain for the
taxable year, reduced in either case by any amount of
such gain included in the amount determined under
subsection (a) (2) (F) or (c) (2) (H).
(2) Pre-August 1, 1969 appreciation amount.
(A) If the fair market value of property referred
to in paragraph (1) was readily ascertainable on August
1, 1969, the pre-August 1, 1969 appreciation amount for
such property is the lesser of (i) the excess of such
fair market value over the taxpayer's basis (for
determining gain) for such property on that date
(determined under the Internal Revenue Code as in
effect on that date), or (ii) the total gain realized
and reportable for federal income tax purposes in
respect of the sale, exchange or other disposition of
such property.
(B) If the fair market value of property referred
to in paragraph (1) was not readily ascertainable on
August 1, 1969, the pre-August 1, 1969 appreciation
amount for such property is that amount which bears the
same ratio to the total gain reported in respect of the
property for federal income tax purposes for the
taxable year, as the number of full calendar months in
that part of the taxpayer's holding period for the
property ending July 31, 1969 bears to the number of
full calendar months in the taxpayer's entire holding
period for the property.
(C) The Department shall prescribe such
regulations as may be necessary to carry out the
purposes of this paragraph.
(g) Double deductions. Unless specifically provided
otherwise, nothing in this Section shall permit the same item
to be deducted more than once.
(h) Legislative intention. Except as expressly provided by
this Section there shall be no modifications or limitations on
the amounts of income, gain, loss or deduction taken into
account in determining gross income, adjusted gross income or
taxable income for federal income tax purposes for the taxable
year, or in the amount of such items entering into the
computation of base income and net income under this Act for
such taxable year, whether in respect of property values as of
August 1, 1969 or otherwise.
(Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198,
eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09;
96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff.
6-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507,
eff. 8-23-11; 97-905, eff. 8-7-12.)
(35 ILCS 5/204) (from Ch. 120, par. 2-204)
Sec. 204. Standard Exemption.
(a) Allowance of exemption. In computing net income under
this Act, there shall be allowed as an exemption the sum of the
amounts determined under subsections (b), (c) and (d),
multiplied by a fraction the numerator of which is the amount
of the taxpayer's base income allocable to this State for the
taxable year and the denominator of which is the taxpayer's
total base income for the taxable year.
(b) Basic amount. For the purpose of subsection (a) of this
Section, except as provided by subsection (a) of Section 205
and in this subsection, each taxpayer shall be allowed a basic
amount of $1000, except that for corporations the basic amount
shall be zero for tax years ending on or after December 31,
2003, and for individuals the basic amount shall be: