HB4739 100TH GENERAL ASSEMBLY

LRB100 18635 HLH 33862 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4739

Introduced , by Rep. Barbara Wheeler

SYNOPSIS AS INTRODUCED:

35 ILCS 175/10
730 ILCS 5/5-9-1.21

Amends the Live Adult Entertainment Facility Surcharge Act. Doubles the amount of the surcharge imposed under the Act. Provides that 50% of the proceeds collected under the Act shall be deposited into the Sexual Assault Services and Prevention Fund and 50% of the proceeds collected from the surcharge imposed under the Act shall be deposited into the Specialized Services for Survivors of Human Trafficking Fund, less amounts which are required to be paid into the Tax Compliance and Administration Fund. Amends the Unified Code of Corrections to make conforming changes.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Live Adult Entertainment Facility Surcharge Act is amended by changing Section 10 as follows:

(35 ILCS 175/10)

Sec. 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) With respect to the surcharge covering a calendar year ending on or before December 31, 2018, an 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. With respect to the surcharge covering a calendar year ending after December 31, 2018, an operator who elects to be subject to this item (1) shall pay to the Department a surcharge imposed upon by the operator in this State in an amount equal to $6 per person admitted to that live adult 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) With respect to the surcharge covering a calendar year ending on or before December 31, 2018, if 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 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. With respect to the surcharge covering a calendar year ending after December 31, 2018, 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 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 $50,000.

(B) With respect to the surcharge covering a calendar year ending after December 31, 2018, if 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. With respect to the surcharge covering a calendar year ending after December 31, 2018, 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 $30,000.

(C) With respect to the surcharge covering a calendar year ending after December 31, 2018, if 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, and if the operator elects to be subject to this item (2), then the operator shall pay the Department a surcharge of $5,000. With respect to the surcharge covering a calendar year ending after December 31, 2018, 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, and if the operator elects to be subject to this item (2), then the operator shall pay the Department a surcharge of $10,000.

(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 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 operate 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 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 operate 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, and ending on December 31, 2018, 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. Beginning on January 1, 2019, the Department shall pay (i) 50% of the proceeds collected from the surcharge imposed under this Act into the Sexual Assault Services and Prevention Fund and (ii) 50% of the proceeds collected from the surcharge imposed under this Act into the Specialized Services for Survivors of Human Trafficking 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 Department in administering and enforcing the provisions of this Act.

(Source: P.A. 97-1035, eff. 1-1-13.)

Section 10. The Unified Code of Corrections is amended by changing Section 5-9-1.21 as follows:

(730 ILCS 5/5-9-1.21)

Sec. 5-9-1.21. Specialized Services for Survivors of Human Trafficking Fund.

(a) There is created in the State treasury a Specialized Services for Survivors of Human Trafficking Fund. Moneys deposited into the Fund under this Section shall be available for the Department of Human Services for the purposes in this Section.

(b) Each plea of guilty, stipulation of facts, or finding of guilt resulting in a judgment of conviction or order of supervision for an offense under Section 10-9, 11-14.1, 11-14.3, or 11-18 of the Criminal Code of 2012 that results in the imposition of a fine shall have a portion of that fine deposited into the Specialized Services for Survivors of Human Trafficking Fund.

(b-5) The Fund may receive, in addition to any source identified under this Section, any moneys required to be deposited into the Fund under Section 10 of the Live Adult Entertainment Facility Surcharge Act.

(c) If imposed, the fine shall be collected by the circuit court clerk in addition to any other imposed fee. The circuit court clerk shall retain $50 to cover the costs in administering and enforcing this Section. The circuit court clerk shall remit the remainder of the fine within one month of its receipt as follows:

(1) $300 shall be distributed equally between all State law enforcement agencies whose officers or employees conducted the investigation or prosecution that resulted in the finding of guilt; and

(2) the remainder of the fine shall be remitted to the Department of Human Services for deposit into the Specialized Services for Survivors of Human Trafficking Fund.

(d) Upon appropriation of moneys from the Specialized Services for Survivors of Human Trafficking Fund, the Department of Human Services shall use these moneys to make grants to non-governmental organizations to provide specialized, trauma-informed services specifically designed to address the priority service needs associated with prostitution and human trafficking. Priority services include, but are not limited to, community based drop-in centers, emergency housing, and long-term safe homes. The Department shall consult with prostitution and human trafficking advocates, survivors, and service providers to identify priority service needs in their respective communities.

(e) Grants made under this Section are in addition to, and not substitutes for, other grants authorized and made by the Department.

(f) Notwithstanding any other law to the contrary, the Specialized Services for Survivors of Human Trafficking Fund is not subject to sweeps, administrative charge-backs, or any other fiscal maneuver that would in any way transfer any amounts from the Specialized Services for Survivors of Human Trafficking Fund into any other fund of the State.

(Source: P.A. 98-1013, eff. 1-1-15.)