Bill Text: IL SB3348 | 2011-2012 | 97th General Assembly | Amended

---

Bill Title: Creates the Live Adult Entertainment Facility Tax Act. Imposes a tax on each operator who operates a live adult entertainment facility in this State. Provides that the amount of the tax is an amount equal to $5 for each entry by each customer admitted into the live adult entertainment facility. Creates the Sexual Assault Prevention Fund as a special fund in the State treasury. Requires that the proceeds of the tax be deposited into the Sexual Assault Prevention Fund. Provides that, from appropriation from the Fund, the Department of Human Services shall make grants to sexual assault organizations with whom the Department has contracts for the purpose of providing community-based assistance to victims of sexual assault and for activities concerning the prevention of sexual assault. Sets forth provisions for the administration of the tax.

Spectrum: Slight Partisan Bill (Democrat 9-3)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3348 Detail]

Download: Illinois-2011-SB3348-Amended.html

---

Sen. Toi W. Hutchinson

Filed: 5/8/2012

09700SB3348sam001 LRB097 17953 HLH 69335 a
AMENDMENT TO SENATE BILL 3348
AMENDMENT NO. ______. Amend Senate Bill 3348 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the Live
Adult Entertainment Facility Surcharge Act.
Section 3. Findings. It is the intent of the General
Assembly to ameliorate the negative secondary effects
associated with the consumption of alcoholic beverages on the
premises of sexually oriented businesses, or the proximity of
sexually oriented businesses to facilities serving alcohol, so
as to promote the health, safety, and welfare of the citizens
of Illinois.
This Act is not intended to directly or indirectly impose
limitations or restrictions on live nude dancing, nor is it the
intent of this Act to restrict or deny access by adults to live
nude dancing performances that may be protected by the First

09700SB3348sam001 - 2 - LRB097 17953 HLH 69335 a
Amendment of the United States Constitution or by the Illinois
Constitution.
Section 5. Definitions. As used in this Act:
"Admission" means entry by a person into a live adult
entertainment facility.
"Department" means the Department of Revenue.
"Live adult entertainment facility" means a striptease
club or other business that serves or permits the consumption
of alcohol on its premises, and, during at least 30 consecutive
or nonconsecutive days in a calendar year, offers or provides
activities by employees, agents, or contractors of the business
that involve nude or partially denuded individuals that, when
considered as a whole, appeal primarily to an interest in
nudity or sex.
"Nude or partially denuded individual" means an individual
who is:
(1) entirely unclothed; or
(2) clothed in a manner that leaves uncovered or
visible through less than fully opaque clothing any portion
of the breasts below the top of the areola of the breasts,
if the person is female, or any portion of the genitals or
buttocks.
"Operator" means any person who owns or operates a live
adult entertainment facility in this State.

09700SB3348sam001 - 3 - LRB097 17953 HLH 69335 a
Section 10. Surcharge imposed; returns.
(a) An annual surcharge is imposed upon each operator who
operates a live adult entertainment facility in this State. By
January 20, 2014, and by January 20 of each year thereafter,
each operator shall elect to pay the surcharge according to
either item (1) or item (2) of this subsection.
(1) An operator who elects to be subject to this item
(1) shall pay to the Department a surcharge imposed upon
admissions to a live adult entertainment facility operated
by the operator in this State in an amount equal to $3 per
person admitted to that live adult entertainment facility.
This item (1) does not require a live entertainment
facility to impose a fee on a customer of the facility. An
operator has the discretion to determine the manner in
which the facility derives the moneys required to pay the
surcharge imposed under this section. In the event that an
operator has not filed the applicable returns under the
Retailers' Occupation Tax Act for a full calendar year
prior to any January 20, then such operator shall pay the
surcharge under this Act pursuant to this item (1) for
moneys owed to the Department subject to this Act for the
previous calendar year.
(2) An operator may, in the alternative, pay to the
Department the surcharge as follows:
(A) If the gross receipts received by the live
adult entertainment facility during the preceding

09700SB3348sam001 - 4 - LRB097 17953 HLH 69335 a
calendar year, upon the basis of which a tax is imposed
under Section 2 of the Retailers' Occupation Tax Act,
are equal or greater than $2,000,000 during the
preceding calendar year, and if the operator elects to
be subject to this item (2), then the operator shall
pay the Department a surcharge of $25,000.
(B) If the gross receipts received by the live
adult entertainment facility during the preceding
calendar year, upon the basis of which a tax is imposed
under Section 2 of the Retailers' Occupation Tax Act,
are equal to or greater than $500,000 but less than
$2,000,000 during the preceding calendar year, and if
the operator elects to be subject to this item (2),
then the operator shall pay to the Department a
surcharge of $15,000.
(C) If the gross receipts received by the live
adult entertainment facility during the preceding
calendar year, upon the basis of which a tax is imposed
under Section 2 of the Retailers' Occupation Tax Act,
are less than $500,000 during the preceding calendar
year, then the operator shall pay the Department a
surcharge of $5,000.
(b) For each live adult entertainment facility paying the
surcharge as set forth in item (1) of subsection (a) of this
Section, the operator must file a return electronically as
provided by the Department and remit payment to the Department

09700SB3348sam001 - 5 - LRB097 17953 HLH 69335 a
on an annual basis no later than January 20 covering the
previous calendar year. Each return made to the Department must
state the following:
(1) the name of the operator;
(2) the address of the live adult entertainment
facility and the address of the principal place of business
(if that is a different address) of the operator;
(3) the total number of admissions to the facility in
the preceding calendar year; and
(4) the total amount of surcharge collected in the
preceding calendar year.
Notwithstanding any other provision of this subsection
concerning the time within which an operator may file his or
her return, if an operator ceases to operates a live adult
entertainment facility, then he or she must file a final return
under this Act with the Department not more than one calendar
month after discontinuing that business.
(c) For each live adult entertainment facility paying the
surcharge as set forth in item (2) of subsection (a) of this
Section, the operator must file a return electronically as
provided by the Department and remit payment to the Department
on an annual basis no later than January 20 covering the
previous calendar year. Each return made to the Department must
state the following:
(1) the name of the operator;
(2) the address of the live adult entertainment

09700SB3348sam001 - 6 - LRB097 17953 HLH 69335 a
facility and the address of the principal place of business
(if that is a different address) of the operator;
(3) the gross receipts received by the live adult
entertainment facility during the preceding calendar year,
upon the basis of which tax is imposed under Section 2 of
the Retailers' Occupation Tax Act; and
(4) the applicable surcharge from Section 10(a)(2) of
this Act to be paid by the operator.
Notwithstanding any other provision of this subsection
concerning the time within which an operator may file his or
her return, if an operator ceases to operates a live adult
entertainment facility, then he or she must file a final return
under this Act with the Department not more than one calendar
month after discontinuing that business.
(d) Beginning January 1, 2014, the Department shall pay all
proceeds collected from the surcharge imposed under this Act
into the Sexual Assault Services and Prevention Fund, less 2%
of those proceeds, which shall be paid into the Tax Compliance
and Administration Fund in the State treasury from which it
shall be appropriated to the Department to cover the costs of
the Department in administering and enforcing the provisions of
this Act.
Section 15. The Sexual Assault Services and Prevention
Fund.
(a) The Sexual Assault Services and Prevention Fund is

09700SB3348sam001 - 7 - LRB097 17953 HLH 69335 a
created as a special fund in the State treasury. From
appropriations from the Fund, the Department of Human Services
shall make grants to sexual assault organizations with whom the
Department has contracts for the purpose of providing
community-based assistance to victims of sexual assault and for
activities concerning the prevention of sexual assault. Moneys
received for the purposes of this Act, including, without
limitation, surcharge proceeds and gifts, grants, and awards
from any public or private entity, must be deposited into the
Fund. Any interest earnings that are attributable to moneys in
the Fund must be deposited into the Fund.
(b) Notwithstanding any transfers authorized under
subsection (e) of Section 10 of this Act, the Fund is not
subject to sweeps, charge-backs, or any other fiscal or
budgetary maneuver that would in any way transfer any moneys
from the Fund into any other fund of the State.
Section 20. Books and records. Every operator electing to
pay the surcharge pursuant to item (1) of subsection (a) of
Section 10 of this Act shall record the admissions of customers
subject to the surcharge under this Act.
Section 25. Application of Retailers' Occupation Tax
provisions; Uniform Penalty and Interest Act provisions. All
the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13 of the Retailers'

09700SB3348sam001 - 8 - LRB097 17953 HLH 69335 a
Occupation Tax Act that are not inconsistent with this Act
apply, as far as practicable, to the surcharge imposed by this
Act to the same extent as if those provisions were included in
this Act. References in the incorporated Sections of the
Retailers' Occupation Tax Act to retailers, to sellers, or to
persons engaged in the business of selling tangible personal
property mean operators. All provisions of the Uniform Penalty
and Interest Act which are not inconsistent with this Act shall
apply.
Section 30. Hearing; notice. The Department may adopt and
enforce any reasonable rule to administer and enforce the
surcharge imposed by this Act.
Section 40. Review under the Administrative Review Law.
(a) The circuit court of any county in which a hearing is
held has the power to review all final administrative decisions
of the Department in administering the surcharge imposed under
this Act. The term "administrative decision" is defined as in
Section 3-101 of the Code of Civil Procedure.
Section 45. Penalty. Any operator who fails to make a
return or who makes a fraudulent return is guilty of a Class 4
felony.
Section 90. The State Finance Act is amended by adding

09700SB3348sam001 - 9 - LRB097 17953 HLH 69335 a
Section 5.811 as follows:
(30 ILCS 105/5.811 new)
Sec. 5.811. The Sexual Assault Services and Prevention
Fund.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.".