HB5640 EngrossedLRB103 38934 KTG 69071 b

1    AN ACT concerning the United States Space Force.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 3. The Statute on Statutes is amended by adding
5Section 1.45 as follows:
 
6    (5 ILCS 70/1.45 new)
7    Sec. 1.45. Reference to armed forces or uniformed
8services. Whenever there is a reference in any Act to "armed
9forces", "armed forces of the United States", "U.S. Armed
10Forces", "United States Armed Forces", or "uniformed
11services", these terms shall be construed to include the
12United States Space Force.
 
13    Section 5. The Flag Display Act is amended by changing
14Section 10 as follows:
 
15    (5 ILCS 465/10)
16    Sec. 10. Death of resident military member, law
17enforcement officer, firefighter, or members of EMS crews.
18    (a) The Governor shall issue an official notice to fly the
19following flags at half-staff upon the death of a resident of
20this State killed (i) by hostile fire as a member of the United
21States armed forces, (ii) in the line of duty as a law

 

 

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1enforcement officer, (iii) in the line of duty as a
2firefighter, (iv) in the line of duty as a member of an
3Emergency Medical Services (EMS) crew, or (v) during on duty
4training for active military duty: the United States national
5flag, the State flag of Illinois, and, in the case of the death
6of the member of the United States armed forces, the
7appropriate military flag as defined in subsection (b) of
8Section 18.6 of the Condominium Property Act and the Honor and
9Remember Flag designated under Section 16 of this Act. Upon
10the Governor's notice, each person or entity required by this
11Act to ensure the display of the United States national flag on
12a flagstaff shall ensure that the flags described in the
13notice are displayed at half-staff on the day designated for
14the resident's funeral and the 2 days preceding that day.
15    (b) The Department of Veterans' Affairs shall notify the
16Governor of the death by hostile fire of an Illinois resident
17member of the United States armed forces. In lieu of notice
18being provided by the Department of Veterans' Affairs, any
19other State or Federal entity, agency, or person holding such
20information may notify the Governor of the death by hostile
21fire of an Illinois resident member of the United States armed
22forces. If such notice is provided to the Governor by an
23entity, agency, or person other than the Department of
24Veterans' Affairs, then the obligation to notify the Governor
25of an Illinois resident soldier's death under this subsection
26(b) shall be considered fulfilled. The Illinois State Police

 

 

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1shall notify the Governor of the death in the line of duty of
2an Illinois resident law enforcement officer. The Office of
3the State Fire Marshal shall notify the Governor of the death
4in the line of duty of an Illinois resident firefighter. The
5Department of Public Health shall notify the Governor of the
6death in the line of duty of an Illinois resident member of an
7Emergency Medical Services (EMS) crew. Notice to the Governor
8shall include at least the resident's name and Illinois
9address, the date designated for the funeral, and the
10circumstances of the death.
11    (c) For the purpose of this Section, the United States
12armed forces includes: (i) the United States Army, Navy,
13Marine Corps, Air Force, Space Force, and Coast Guard; (ii)
14any reserve component of each of the forces listed in item (i);
15and (iii) the National Guard.
16    (d) Nothing in this Section requires the removal or
17relocation of any existing flags currently displayed in the
18State. This Section does not apply to a State facility if the
19requirements of this Section cannot be satisfied without a
20physical modification to that facility.
21(Source: P.A. 102-538, eff. 8-20-21; 103-409, eff. 1-1-24.)
 
22    Section 10. The Secretary of State Merit Employment Code
23is amended by changing Section 10b.7 as follows:
 
24    (15 ILCS 310/10b.7)  (from Ch. 124, par. 110b.7)

 

 

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1    Sec. 10b.7. For the granting of appropriate preference in
2entrance examinations to qualified persons who have been
3members of the armed forces of the United States or to
4qualified persons who, while citizens of the United States,
5were members of the armed forces of allies of the United States
6in time of hostilities with a foreign country, and to certain
7other persons as set forth in this Section.
8    (a) As used in this Section:
9        (1) "Time of hostilities with a foreign country" means
10    any period of time in the past, present, or future during
11    which a declaration of war by the United States Congress
12    has been or is in effect or during which an emergency
13    condition has been or is in effect that is recognized by
14    the issuance of a Presidential proclamation or a
15    Presidential executive order and in which the armed forces
16    expeditionary medal or other campaign service medals are
17    awarded according to Presidential executive order.
18        (2) "Armed forces of the United States" means the
19    United States Army, Navy, Air Force, Space Force, Marine
20    Corps, Coast Guard. Service in the Merchant Marine that
21    constitutes active duty under Section 401 of federal
22    Public Law 95-202 shall also be considered service in the
23    Armed Forces of the United States for purposes of this
24    Section.
25    (b) The preference granted under this Section shall be in
26the form of points added to the final grades of the persons if

 

 

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1they otherwise qualify and are entitled to appear on the list
2of those eligible for appointments.
3    (c) A veteran is qualified for a preference of 10 points if
4the veteran currently holds proof of a service connected
5disability from the United States Department of Veterans
6Affairs or an allied country or if the veteran is a recipient
7of the Purple Heart.
8    (d) A veteran who has served during a time of hostilities
9with a foreign country is qualified for a preference of 5
10points if the veteran served under one or more of the following
11conditions:
12        (1) The veteran served a total of at least 6 months, or
13        (2) The veteran served for the duration of hostilities
14    regardless of the length of engagement, or
15        (3) The veteran was discharged on the basis of
16    hardship, or
17        (4) The veteran was released from active duty because
18    of a service connected disability and was discharged under
19    honorable conditions.
20    (e) A person not eligible for a preference under
21subsection (c) or (d) is qualified for a preference of 3 points
22if the person has served in the armed forces of the United
23States, the Illinois National Guard, or any reserve component
24of the armed forces of the United States and the person: (1)
25served for at least 6 months and has been discharged under
26honorable conditions or (2) has been discharged on the ground

 

 

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1of hardship or (3) was released from active duty because of a
2service connected disability. An active member of the National
3Guard or a reserve component of the armed forces of the United
4States is eligible for the preference if the member meets the
5service requirements of this subsection (e).
6    (f) The rank order of persons entitled to a preference on
7eligible lists shall be determined on the basis of their
8augmented ratings. When the Director establishes eligible
9lists on the basis of category ratings such as "superior",
10"excellent", "well-qualified", and "qualified", the veteran
11eligibles in each such category shall be preferred for
12appointment before the non-veteran eligibles in the same
13category.
14    (g) Employees in positions covered by jurisdiction B who,
15while in good standing, leave to engage in military service
16during a period of hostility, shall be given credit for
17seniority purposes for time served in the armed forces.
18    (h) A surviving unremarried spouse of a veteran who
19suffered a service connected death or the spouse of a veteran
20who suffered a service connected disability that prevents the
21veteran from qualifying for civil service employment shall be
22entitled to the same preference to which the veteran would
23have been entitled under this Section.
24    (i) A preference shall also be given to the following
25individuals: 10 points for one parent of an unmarried veteran
26who suffered a service connected death or a service connected

 

 

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1disability that prevents the veteran from qualifying for civil
2service employment. The first parent to receive a civil
3service appointment shall be the parent entitled to the
4preference.
5(Source: P.A. 87-796.)
 
6    Section 15. The Comptroller Merit Employment Code is
7amended by changing Section 10b.7 as follows:
 
8    (15 ILCS 410/10b.7)  (from Ch. 15, par. 432)
9    Sec. 10b.7. For the granting of appropriate preference in
10entrance examinations to qualified veterans or persons who
11have been members of the armed forces of the United States or
12to qualified persons who, while citizens of the United States,
13were members of the armed forces of allies of the United States
14in time of hostilities with a foreign country, and to certain
15other persons as set forth in this Section.
16    (a) As used in this Section:
17        (1) "Time of hostilities with a foreign country" means
18    any period of time in the past, present, or future during
19    which a declaration of war by the United States Congress
20    has been or is in effect or during which an emergency
21    condition has been or is in effect that is recognized by
22    the issuance of a Presidential proclamation or a
23    Presidential executive order and in which the armed forces
24    expeditionary medal or other campaign service medals are

 

 

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1    awarded according to Presidential executive order.
2        (2) "Armed forces of the United States" means the
3    United States Army, Navy, Air Force, Space Force, Marine
4    Corps, Coast Guard. Service in the Merchant Marine that
5    constitutes active duty under Section 401 of federal
6    Public Law 95-202 shall also be considered service in the
7    Armed Forces of the United States for purposes of this
8    Section.
9    (3) "Veteran" means a person who has served as a member of
10the armed forces of the United States, the Illinois National
11Guard, or a reserve component of the armed forces of the United
12States.
13    (b) The preference granted under this Section shall be in
14the form of points added to the final grades of the persons if
15they otherwise qualify and are entitled to appear on the list
16of those eligible for appointments.
17    (c) A veteran is qualified for a preference of 10 points if
18the veteran currently holds proof of a service connected
19disability from the United States Department of Veterans
20Affairs or an allied country or if the veteran is a recipient
21of the Purple Heart.
22    (d) A veteran who has served during a time of hostilities
23with a foreign country is qualified for a preference of 5
24points if the veteran served under one or more of the following
25conditions:
26        (1) The veteran served a total of at least 6 months, or

 

 

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1        (2) The veteran served for the duration of hostilities
2    regardless of the length of engagement, or
3        (3) The veteran was discharged on the basis of
4    hardship, or
5        (4) The veteran was released from active duty because
6    of a service connected disability and was discharged under
7    honorable conditions.
8    (e) A person not eligible for a preference under
9subsection (c) or (d) is qualified for a preference of 3 points
10if the person has served in the armed forces of the United
11States, the Illinois National Guard, or any reserve component
12of the armed forces of the United States and the person: (1)
13served for at least 6 months and has been discharged under
14honorable conditions; (2) has been discharged on the ground of
15hardship; (3) was released from active duty because of a
16service connected disability; or (4) served a minimum of 4
17years in the Illinois National Guard or reserve component of
18the armed forces of the United States regardless of whether or
19not the person was mobilized to active duty. An active member
20of the National Guard or a reserve component of the armed
21forces of the United States is eligible for the preference if
22the member meets the service requirements of this subsection
23(e).
24    (f) The rank order of persons entitled to a preference on
25eligible lists shall be determined on the basis of their
26augmented ratings. When the Director establishes eligible

 

 

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1lists on the basis of category ratings such as "superior",
2"excellent", "well-qualified", and "qualified", the veteran
3eligibles in each such category shall be preferred for
4appointment before the non-veteran eligibles in the same
5category.
6    (g) Employees in positions covered by jurisdiction B who,
7while in good standing, leave to engage in military service
8during a period of hostility, shall be given credit for
9seniority purposes for time served in the armed forces.
10    (h) A surviving unremarried spouse of a veteran who
11suffered a service connected death or the spouse of a veteran
12who suffered a service connected disability that prevents the
13veteran from qualifying for civil service employment shall be
14entitled to the same preference to which the veteran would
15have been entitled under this Section.
16    (i) A preference shall also be given to the following
17individuals: 10 points for one parent of an unmarried veteran
18who suffered a service connected death or a service connected
19disability that prevents the veteran from qualifying for civil
20service employment. The first parent to receive a civil
21service appointment shall be the parent entitled to the
22preference.
23(Source: P.A. 100-763, eff. 8-10-18.)
 
24    Section 20. The State Treasurer Employment Code is amended
25by changing Section 9b.5 as follows:
 

 

 

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1    (15 ILCS 510/9b.5)  (from Ch. 130, par. 109b.5)
2    Sec. 9b.5. For the granting of appropriate preference in
3entrance examinations to qualified persons who have been
4members of the armed forces of the United States or to
5qualified persons who, while citizens of the United States,
6were members of the armed forces of allies of the United States
7in time of hostilities with a foreign country, and to certain
8other persons as set forth in this Section.
9    (a) As used in this Section:
10        (1) "Time of hostilities with a foreign country" means
11    any period of time in the past, present, or future during
12    which a declaration of war by the United States Congress
13    has been or is in effect or during which an emergency
14    condition has been or is in effect that is recognized by
15    the issuance of a Presidential proclamation or a
16    Presidential executive order and in which the armed forces
17    expeditionary medal or other campaign service medals are
18    awarded according to Presidential executive order.
19        (2) "Armed forces of the United States" means the
20    United States Army, Navy, Air Force, Space Force, Marine
21    Corps, Coast Guard. Service in the Merchant Marine that
22    constitutes active duty under Section 401 of federal
23    Public Law 95-202 shall also be considered service in the
24    Armed Forces of the United States for purposes of this
25    Section.

 

 

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1    (b) The preference granted under this Section shall be in
2the form of points added to the final grades of the persons if
3they otherwise qualify and are entitled to appear on the list
4of those eligible for appointments.
5    (c) A veteran is qualified for a preference of 10 points if
6the veteran currently holds proof of a service connected
7disability from the United States Department of Veterans
8Affairs or an allied country or if the veteran is a recipient
9of the Purple Heart.
10    (d) A veteran who has served during a time of hostilities
11with a foreign country is qualified for a preference of 5
12points if the veteran served under one or more of the following
13conditions:
14        (1) The veteran served a total of at least 6 months, or
15        (2) The veteran served for the duration of hostilities
16    regardless of the length of engagement, or
17        (3) The veteran was discharged on the basis of
18    hardship, or
19        (4) The veteran was released from active duty because
20    of a service connected disability and was discharged under
21    honorable conditions.
22    (e) A person not eligible for a preference under
23subsection (c) or (d) is qualified for a preference of 3 points
24if the person has served in the armed forces of the United
25States, the Illinois National Guard, or any reserve component
26of the armed forces of the United States if the person: (1)

 

 

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1served for at least 6 months and has been discharged under
2honorable conditions or (2) has been discharged on the ground
3of hardship or (3) was released from active duty because of a
4service connected disability. An active member of the National
5Guard or a reserve component of the armed forces of the United
6States is eligible for the preference if the member meets the
7service requirements of this subsection (e).
8    (f) The rank order of persons entitled to a preference on
9eligible lists shall be determined on the basis of their
10augmented ratings. When the Director establishes eligible
11lists on the basis of category ratings such as "superior",
12"excellent", "well-qualified", and "qualified", the veteran
13eligibles in each such category shall be preferred for
14appointment before the non-veteran eligibles in the same
15category.
16    (g) Employees in positions covered by this Code who, while
17in good standing, leave to engage in military service during a
18period of hostility, shall be given credit for seniority
19purposes for time served in the armed forces.
20    (h) A surviving unremarried spouse of a veteran who
21suffered a service connected death or the spouse of a veteran
22who suffered a service connected disability that prevents the
23veteran from qualifying for civil service employment shall be
24entitled to the same preference to which the veteran would
25have been entitled under this Section.
26    (i) A preference shall also be given to the following

 

 

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1individuals: 10 points for one parent of an unmarried veteran
2who suffered a service connected death or a service connected
3disability that prevents the veteran from qualifying for civil
4service employment. The first parent to receive a civil
5service appointment shall be the parent entitled to the
6preference.
7(Source: P.A. 87-796.)
 
8    Section 25. The Personnel Code is amended by changing
9Section 8b.7 as follows:
 
10    (20 ILCS 415/8b.7)  (from Ch. 127, par. 63b108b.7)
11    Sec. 8b.7. Veteran preference. For the granting of
12appropriate preference to qualified veterans, persons who have
13been members of the armed forces of the United States or to
14qualified persons who, while citizens of the United States,
15were members of the armed forces of allies of the United States
16in time of hostilities with a foreign country, and to certain
17other persons as set forth in this Section.
18    (a) As used in this Section:
19        (1) "Time of hostilities with a foreign country" means
20    any period of time in the past, present, or future during
21    which a declaration of war by the United States Congress
22    has been or is in effect or during which an emergency
23    condition has been or is in effect that is recognized by
24    the issuance of a Presidential proclamation or a

 

 

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1    Presidential executive order and in which the armed forces
2    expeditionary medal or other campaign service medals are
3    awarded according to Presidential executive order.
4        (2) "Armed forces of the United States" means the
5    United States Army, Navy, Air Force, Space Force, Marine
6    Corps, and Coast Guard. Service in the Merchant Marine
7    that constitutes active duty under Section 401 of federal
8    Public Law 95-202 shall also be considered service in the
9    Armed Forces of the United States for purposes of this
10    Section.
11        (3) "Veteran" means a member of the armed forces of
12    the United States, the Illinois National Guard, or a
13    reserve component of the armed forces of the United
14    States.
15    (b) The preference granted under this Section shall be in
16the form of points, or the equivalent, added to the applicable
17scores of the persons if they otherwise qualify and are
18entitled to be considered for appointment.
19    (c) A veteran is qualified for a preference of 10 points if
20the veteran currently holds proof of a service connected
21disability from the United States Department of Veterans
22Affairs or an allied country or if the veteran is a recipient
23of the Purple Heart.
24    (d) A veteran who has served during a time of hostilities
25with a foreign country is qualified for a preference of 5
26points if the veteran served under one or more of the following

 

 

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1conditions:
2        (1) The veteran served a total of at least 6 months, or
3        (2) The veteran served for the duration of hostilities
4    regardless of the length of engagement, or
5        (3) The veteran was discharged on the basis of
6    hardship, or
7        (4) The veteran was released from active duty because
8    of a service connected disability and was discharged under
9    honorable conditions.
10    (e) A person not eligible for a preference under
11subsection (c) or (d) is qualified for a preference of 3 points
12if the person has served in the armed forces of the United
13States, the Illinois National Guard, or any reserve component
14of the armed forces of the United States if the person: (1)
15served for at least 6 months and has been discharged under
16honorable conditions; (2) has been discharged on the ground of
17hardship; (3) was released from active duty because of a
18service connected disability; or (4) served a minimum of 4
19years in the Illinois National Guard or reserve component of
20the armed forces of the United States regardless of whether or
21not the person was mobilized to active duty. An active member
22of the National Guard or a reserve component of the armed
23forces of the United States is eligible for the preference if
24the member meets the service requirements of this subsection
25(e).
26    (f) The augmented ratings shall be used when determining

 

 

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1the rank order of persons to be appointed.
2    (g) Employees in positions covered by jurisdiction B who,
3while in good standing, leave to engage in military service
4during a period of hostility, shall be given credit for
5seniority purposes for time served in the armed forces.
6    (h) A surviving unremarried spouse of a veteran who
7suffered a service connected death or the spouse of a veteran
8who suffered a service connected disability that prevents the
9veteran from qualifying for civil service employment shall be
10entitled to the same preference to which the veteran would
11have been entitled under this Section.
12    (i) A preference shall also be given to the following
13individuals: 10 points for one parent of an unmarried veteran
14who suffered a service connected death or a service connected
15disability that prevents the veteran from qualifying for civil
16service employment. The first parent to receive a civil
17service appointment shall be the parent entitled to the
18preference.
19    (j) The Department of Central Management Services shall
20adopt rules and implement procedures to verify that any person
21seeking a preference under this Section is entitled to the
22preference. A person seeking a preference under this Section
23shall provide documentation or execute any consents or other
24documents required by the Department of Central Management
25Services or any other State department or agency to enable the
26department or agency to verify that the person is entitled to

 

 

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1the preference.
2    (k) If an applicant claims to be a veteran, the Department
3of Central Management Services must verify that status before
4granting a veteran preference by requiring a certified copy of
5the applicant's most recent DD214 (Certificate of Release or
6Discharge from Active Duty), NGB-22 (Proof of National Guard
7Service), or other evidence of the applicant's most recent
8honorable discharge from the Armed Forces of the United States
9that is determined to be acceptable by the Department of
10Central Management Services.
11(Source: P.A. 103-108, eff. 6-27-23.)
 
12    Section 30. The Department of Commerce and Economic
13Opportunity Law of the Civil Administrative Code of Illinois
14is amended by changing Section 605-503 as follows:
 
15    (20 ILCS 605/605-503)
16    Sec. 605-503. Entrepreneurship assistance centers.
17    (a) The Department shall establish and support, subject to
18appropriation, entrepreneurship assistance centers, including
19the issuance of grants, at career education agencies and
20not-for-profit corporations, including, but not limited to,
21local development corporations, chambers of commerce,
22community-based business outreach centers, and other
23community-based organizations. The purpose of the centers
24shall be to train minority group members, women, individuals

 

 

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1with a disability, dislocated workers, veterans, and youth
2entrepreneurs in the principles and practice of
3entrepreneurship in order to prepare those persons to pursue
4self-employment opportunities and to pursue a minority
5business enterprise or a women-owned business enterprise. The
6centers shall provide for training in all aspects of business
7development and small business management as defined by the
8Department.
9    (b) The Department shall establish criteria for selection
10and designation of the centers which shall include, but not be
11limited to:
12        (1) the level of support for the center from local
13    post-secondary education institutions, businesses, and
14    government;
15        (2) the level of financial assistance provided at the
16    local and federal level to support the operations of the
17    center;
18        (3) the applicant's understanding of program goals and
19    objectives articulated by the Department;
20        (4) the plans of the center to supplement State and
21    local funding through fees for services which may be based
22    on a sliding scale based on ability to pay;
23        (5) the need for and anticipated impact of the center
24    on the community in which it will function;
25        (6) the quality of the proposed work plan and staff of
26    the center; and

 

 

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1        (7) the extent of economic distress in the area to be
2    served.
3    (c) Each center shall:
4        (1) be operated by a board of directors representing
5    community leaders in business, education, finance, and
6    government;
7        (2) be incorporated as a not-for-profit corporation;
8        (3) be located in an area accessible to eligible
9    clients;
10        (4) establish an advisory group of community business
11    experts, at least one-half of whom shall be representative
12    of the clientele to be served by the center, which shall
13    constitute a support network to provide counseling and
14    mentoring services to minority group members, women,
15    individuals with a disability, dislocated workers,
16    veterans, and youth entrepreneurs from the concept stage
17    of development through the first one to 2 years of
18    existence on a regular basis and as needed thereafter; and
19        (5) establish a referral system and linkages to
20    existing area small business assistance programs and
21    financing sources.
22    (d) Each entrepreneurship assistance center shall provide
23needed services to eligible clients, including, but not
24limited to: (i) orientation and screening of prospective
25entrepreneurs; (ii) analysis of business concepts and
26technical feasibility; (iii) market analysis; (iv) management

 

 

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1analysis and counseling; (v) business planning and financial
2planning assistance; (vi) referrals to financial resources;
3(vii) referrals to existing educational programs for training
4in such areas as marketing, accounting, and other training
5programs as may be necessary and available; and (viii)
6referrals to business incubator facilities, when appropriate,
7for the purpose of entering into agreements to access shared
8support services.
9    (e) Applications for grants made under this Section shall
10be made in the manner and on forms prescribed by the
11Department. The application shall include, but shall not be
12limited to:
13        (1) a description of the training programs available
14    within the geographic area to be served by the center to
15    which eligible clients may be referred;
16        (2) designation of a program director;
17        (3) plans for providing ongoing technical assistance
18    to program graduates, including linkages with providers of
19    other entrepreneurial assistance programs and with
20    providers of small business technical assistance and
21    services;
22        (4) a program budget, including matching funds,
23    in-kind and otherwise, to be provided by the applicant;
24    and
25        (5) any other requirements as deemed necessary by the
26    Department.

 

 

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1    (f) Grants made under this Section shall be disbursed for
2payment of the cost of services and expenses of the program
3director, the instructors of the participating career
4education agency or not-for-profit corporation, the faculty
5and support personnel thereof, and any other person in the
6service of providing instruction and counseling in furtherance
7of the program.
8    (g) The Department shall monitor the performance of each
9entrepreneurial assistance center and require quarterly
10reports from each center at such time and in such a manner as
11prescribed by the Department.
12    The Department shall also evaluate the entrepreneurial
13assistance centers established under this Section and report
14annually beginning on January 1, 2023, and on or before
15January 1 of each year thereafter, the results of the
16evaluation to the Governor and the General Assembly. The
17report shall discuss the extent to which the centers serve
18minority group members, women, individuals with a disability,
19dislocated workers, veterans, and youth entrepreneurs; the
20extent to which the training program is coordinated with other
21assistance programs targeted to small and new businesses; the
22ability of the program to leverage other sources of funding
23and support; and the success of the program in aiding
24entrepreneurs to start up new businesses, including the number
25of new business start-ups resulting from the program. The
26report shall recommend changes and improvements in the

 

 

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1training program and in the quality of supplemental technical
2assistance offered to graduates of the training programs. The
3report shall be made available to the public on the
4Department's website. Between evaluation due dates, the
5Department shall maintain the necessary records and data
6required to satisfy the evaluation requirements.
7    (h) For purposes of this Section:
8    "Entrepreneurship assistance center" or "center" means the
9business development centers or programs which provide
10assistance to primarily minority group members, women,
11individuals with a disability, dislocated workers, veterans,
12and youth entrepreneurs under this Section.
13    "Disability" means, with respect to an individual: (i) a
14physical or mental impairment that substantially limits one or
15more of the major life activities of an individual; (ii) a
16record of such an impairment; or (iii) being regarded as
17having an impairment.
18    "Minority business enterprise" has the same meaning as
19provided for "minority-owned business" under Section 2 of the
20Business Enterprise for Minorities, Women, and Persons with
21Disabilities Act.
22    "Minority group member" has the same meaning as provided
23for "minority person" under Section 2 of the Business
24Enterprise for Minorities, Women, and Persons with
25Disabilities Act.
26    "Women-owned business enterprise" has the same meaning as

 

 

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1provided for "women-owned business" under Section 2 of the
2Business Enterprise for Minorities, Women, and Persons with
3Disabilities Act.
4    "Veteran" means a person who served in and who has
5received an honorable or general discharge from, the United
6States Army, Navy, Air Force, Space Force, Marines, Coast
7Guard, or reserves thereof, or who served in the Army National
8Guard, Air National Guard, or Illinois National Guard.
9    "Youth entrepreneur" means a person who is between the
10ages of 16 and 29 years old and is seeking community support to
11start a business in Illinois.
12(Source: P.A. 102-272, eff. 1-1-22; 102-821, eff. 1-1-23;
13103-154, eff. 6-30-23.)
 
14    Section 35. The Illinois Procurement Code is amended by
15changing Section 45-57 as follows:
 
16    (30 ILCS 500/45-57)
17    Sec. 45-57. Veterans.
18    (a) Set-aside goal. It is the goal of the State to promote
19and encourage the continued economic development of small
20businesses owned and controlled by qualified veterans and that
21qualified service-disabled veteran-owned small businesses
22(referred to as SDVOSB) and veteran-owned small businesses
23(referred to as VOSB) participate in the State's procurement
24process as both prime contractors and subcontractors. Not less

 

 

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1than 3% of the total dollar amount of State contracts, as
2defined by the Commission on Equity and Inclusion, shall be
3established as a goal to be awarded to SDVOSB and VOSB. That
4portion of a contract under which the contractor subcontracts
5with a SDVOSB or VOSB may be counted toward the goal of this
6subsection. The Commission on Equity and Inclusion shall adopt
7rules to implement compliance with this subsection by all
8State agencies.
9    (b) Fiscal year reports. By each November 1, each chief
10procurement officer shall report to the Commission on Equity
11and Inclusion on all of the following for the immediately
12preceding fiscal year, and by each March 1 the Commission on
13Equity and Inclusion shall compile and report that information
14to the General Assembly:
15        (1) The total number of VOSB, and the number of
16    SDVOSB, who submitted bids for contracts under this Code.
17        (2) The total number of VOSB, and the number of
18    SDVOSB, who entered into contracts with the State under
19    this Code and the total value of those contracts.
20    (b-5) The Commission on Equity and Inclusion shall submit
21an annual report to the Governor and the General Assembly that
22shall include the following:
23        (1) a year-by-year comparison of the number of
24    certifications the State has issued to veteran-owned small
25    businesses and service-disabled veteran-owned small
26    businesses;

 

 

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1        (2) the obstacles, if any, the Commission on Equity
2    and Inclusion faces when certifying veteran-owned
3    businesses and possible rules or changes to rules to
4    address those issues;
5        (3) a year-by-year comparison of awarded contracts to
6    certified veteran-owned small businesses and
7    service-disabled veteran-owned small businesses; and
8        (4) any other information that the Commission on
9    Equity and Inclusion deems necessary to assist
10    veteran-owned small businesses and service-disabled
11    veteran-owned small businesses to become certified with
12    the State.
13    The Commission on Equity and Inclusion shall conduct a
14minimum of 2 outreach events per year to ensure that
15veteran-owned small businesses and service-disabled
16veteran-owned small businesses know about the procurement
17opportunities and certification requirements with the State.
18The Commission on Equity and Inclusion may receive
19appropriations for outreach.
20    (c) Yearly review and recommendations. Each year, each
21chief procurement officer shall review the progress of all
22State agencies under its jurisdiction in meeting the goal
23described in subsection (a), with input from statewide
24veterans' service organizations and from the business
25community, including businesses owned by qualified veterans,
26and shall make recommendations to be included in the

 

 

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1Commission on Equity and Inclusion's report to the General
2Assembly regarding continuation, increases, or decreases of
3the percentage goal. The recommendations shall be based upon
4the number of businesses that are owned by qualified veterans
5and on the continued need to encourage and promote businesses
6owned by qualified veterans.
7    (d) Governor's recommendations. To assist the State in
8reaching the goal described in subsection (a), the Governor
9shall recommend to the General Assembly changes in programs to
10assist businesses owned by qualified veterans.
11    (e) Definitions. As used in this Section:
12    "Armed forces of the United States" means the United
13States Army, Navy, Air Force, Space Force, Marine Corps, Coast
14Guard, or service in active duty as defined under 38 U.S.C.
15Section 101. Service in the Merchant Marine that constitutes
16active duty under Section 401 of federal Public Act 95-202
17shall also be considered service in the armed forces for
18purposes of this Section.
19    "Certification" means a determination made by the Illinois
20Department of Veterans' Affairs and the Commission on Equity
21and Inclusion that a business entity is a qualified
22service-disabled veteran-owned small business or a qualified
23veteran-owned small business for whatever purpose. A SDVOSB or
24VOSB owned and controlled by women, minorities, or persons
25with disabilities, as those terms are defined in Section 2 of
26the Business Enterprise for Minorities, Women, and Persons

 

 

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1with Disabilities Act, may also select and designate whether
2that business is to be certified as a "women-owned business",
3"minority-owned business", or "business owned by a person with
4a disability", as defined in Section 2 of the Business
5Enterprise for Minorities, Women, and Persons with
6Disabilities Act.
7    "Control" means the exclusive, ultimate, majority, or sole
8control of the business, including but not limited to capital
9investment and all other financial matters, property,
10acquisitions, contract negotiations, legal matters,
11officer-director-employee selection and comprehensive hiring,
12operation responsibilities, cost-control matters, income and
13dividend matters, financial transactions, and rights of other
14shareholders or joint partners. Control shall be real,
15substantial, and continuing, not pro forma. Control shall
16include the power to direct or cause the direction of the
17management and policies of the business and to make the
18day-to-day as well as major decisions in matters of policy,
19management, and operations. Control shall be exemplified by
20possessing the requisite knowledge and expertise to run the
21particular business, and control shall not include simple
22majority or absentee ownership.
23    "Qualified service-disabled veteran" means a veteran who
24has been found to have 10% or more service-connected
25disability by the United States Department of Veterans Affairs
26or the United States Department of Defense.

 

 

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1    "Qualified service-disabled veteran-owned small business"
2or "SDVOSB" means a small business (i) that is at least 51%
3owned by one or more qualified service-disabled veterans
4living in Illinois or, in the case of a corporation, at least
551% of the stock of which is owned by one or more qualified
6service-disabled veterans living in Illinois; (ii) that has
7its home office in Illinois; and (iii) for which items (i) and
8(ii) are factually verified annually by the Commission on
9Equity and Inclusion.
10    "Qualified veteran-owned small business" or "VOSB" means a
11small business (i) that is at least 51% owned by one or more
12qualified veterans living in Illinois or, in the case of a
13corporation, at least 51% of the stock of which is owned by one
14or more qualified veterans living in Illinois; (ii) that has
15its home office in Illinois; and (iii) for which items (i) and
16(ii) are factually verified annually by the Commission on
17Equity and Inclusion.
18    "Service-connected disability" means a disability incurred
19in the line of duty in the active military, naval, or air
20service as described in 38 U.S.C. 101(16).
21    "Small business" means a business that has annual gross
22sales of less than $150,000,000 as evidenced by the federal
23income tax return of the business. A firm with gross sales in
24excess of this cap may apply to the Commission on Equity and
25Inclusion for certification for a particular contract if the
26firm can demonstrate that the contract would have significant

 

 

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1impact on SDVOSB or VOSB as suppliers or subcontractors or in
2employment of veterans or service-disabled veterans.
3    "State agency" has the meaning provided in Section
41-15.100 of this Code.
5    "Time of hostilities with a foreign country" means any
6period of time in the past, present, or future during which a
7declaration of war by the United States Congress has been or is
8in effect or during which an emergency condition has been or is
9in effect that is recognized by the issuance of a Presidential
10proclamation or a Presidential executive order and in which
11the armed forces expeditionary medal or other campaign service
12medals are awarded according to Presidential executive order.
13    "Veteran" means a person who (i) has been a member of the
14armed forces of the United States or, while a citizen of the
15United States, was a member of the armed forces of allies of
16the United States in time of hostilities with a foreign
17country and (ii) has served under one or more of the following
18conditions: (a) the veteran served a total of at least 6
19months; (b) the veteran served for the duration of hostilities
20regardless of the length of the engagement; (c) the veteran
21was discharged on the basis of hardship; or (d) the veteran was
22released from active duty because of a service connected
23disability and was discharged under honorable conditions.
24    (f) Certification program. The Illinois Department of
25Veterans' Affairs and the Commission on Equity and Inclusion
26shall work together to devise a certification procedure to

 

 

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1assure that businesses taking advantage of this Section are
2legitimately classified as qualified service-disabled
3veteran-owned small businesses or qualified veteran-owned
4small businesses.
5    The Commission on Equity and Inclusion shall:
6        (1) compile and maintain a comprehensive list of
7    certified veteran-owned small businesses and
8    service-disabled veteran-owned small businesses;
9        (2) assist veteran-owned small businesses and
10    service-disabled veteran-owned small businesses in
11    complying with the procedures for bidding on State
12    contracts;
13        (3) provide training for State agencies regarding the
14    goal setting process and compliance with veteran-owned
15    small business and service-disabled veteran-owned small
16    business goals; and
17        (4) implement and maintain an electronic portal on the
18    Commission on Equity and Inclusion's website for the
19    purpose of completing and submitting veteran-owned small
20    business and service-disabled veteran-owned small business
21    certificates.
22    The Commission on Equity and Inclusion, in consultation
23with the Department of Veterans' Affairs, may develop programs
24and agreements to encourage cities, counties, towns,
25townships, and other certifying entities to adopt uniform
26certification procedures and certification recognition

 

 

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1programs.
2    (f-5) A business shall be certified by the Commission on
3Equity and Inclusion as a service-disabled veteran-owned small
4business or a veteran-owned small business for purposes of
5this Section if the Commission on Equity and Inclusion
6determines that the business has been certified as a
7service-disabled veteran-owned small business or a
8veteran-owned small business by the Vets First Verification
9Program of the United States Department of Veterans Affairs,
10and the business has provided to the Commission on Equity and
11Inclusion the following:
12        (1) documentation showing certification as a
13    service-disabled veteran-owned small business or a
14    veteran-owned small business by the Vets First
15    Verification Program of the United States Department of
16    Veterans Affairs;
17        (2) proof that the business has its home office in
18    Illinois; and
19        (3) proof that the qualified veterans or qualified
20    service-disabled veterans live in the State of Illinois.
21    The policies of the Commission on Equity and Inclusion
22regarding recognition of the Vets First Verification Program
23of the United States Department of Veterans Affairs shall be
24reviewed annually by the Commission on Equity and Inclusion,
25and recognition of service-disabled veteran-owned small
26businesses and veteran-owned small businesses certified by the

 

 

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1Vets First Verification Program of the United States
2Department of Veterans Affairs may be discontinued by the
3Commission on Equity and Inclusion by rule upon a finding that
4the certification standards of the Vets First Verification
5Program of the United States Department of Veterans Affairs do
6not meet the certification requirements established by the
7Commission on Equity and Inclusion.
8    (g) Penalties.
9        (1) Administrative penalties. The chief procurement
10    officers appointed pursuant to Section 10-20 shall suspend
11    any person who commits a violation of Section 17-10.3 or
12    subsection (d) of Section 33E-6 of the Criminal Code of
13    2012 relating to this Section from bidding on, or
14    participating as a contractor, subcontractor, or supplier
15    in, any State contract or project for a period of not less
16    than 3 years, and, if the person is certified as a
17    service-disabled veteran-owned small business or a
18    veteran-owned small business, then the Commission on
19    Equity and Inclusion shall revoke the business's
20    certification for a period of not less than 3 years. An
21    additional or subsequent violation shall extend the
22    periods of suspension and revocation for a period of not
23    less than 5 years. The suspension and revocation shall
24    apply to the principals of the business and any subsequent
25    business formed or financed by, or affiliated with, those
26    principals.

 

 

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1        (2) Reports of violations. Each State agency shall
2    report any alleged violation of Section 17-10.3 or
3    subsection (d) of Section 33E-6 of the Criminal Code of
4    2012 relating to this Section to the chief procurement
5    officers appointed pursuant to Section 10-20. The chief
6    procurement officers appointed pursuant to Section 10-20
7    shall subsequently report all such alleged violations to
8    the Attorney General, who shall determine whether to bring
9    a civil action against any person for the violation.
10        (3) List of suspended persons. The chief procurement
11    officers appointed pursuant to Section 10-20 shall monitor
12    the status of all reported violations of Section 17-10.3
13    or subsection (d) of Section 33E-6 of the Criminal Code of
14    1961 or the Criminal Code of 2012 relating to this Section
15    and shall maintain and make available to all State
16    agencies a central listing of all persons that committed
17    violations resulting in suspension.
18        (4) Use of suspended persons. During the period of a
19    person's suspension under paragraph (1) of this
20    subsection, a State agency shall not enter into any
21    contract with that person or with any contractor using the
22    services of that person as a subcontractor.
23        (5) Duty to check list. Each State agency shall check
24    the central listing provided by the chief procurement
25    officers appointed pursuant to Section 10-20 under
26    paragraph (3) of this subsection to verify that a person

 

 

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1    being awarded a contract by that State agency, or to be
2    used as a subcontractor or supplier on a contract being
3    awarded by that State agency, is not under suspension
4    pursuant to paragraph (1) of this subsection.
5    (h) On and after the effective date of this amendatory Act
6of the 102nd General Assembly, all powers, duties, rights, and
7responsibilities of the Department of Central Management
8Services with respect to the requirements of this Section are
9transferred to the Commission on Equity and Inclusion.
10    All books, records, papers, documents, property (real and
11personal), contracts, causes of action, and pending business
12pertaining to the powers, duties, rights, and responsibilities
13transferred by this amendatory Act from the Department of
14Central Management Services to the Commission on Equity and
15Inclusion, including, but not limited to, material in
16electronic or magnetic format and necessary computer hardware
17and software, shall be transferred to the Commission on Equity
18and Inclusion.
19    The powers, duties, rights, and responsibilities
20transferred from the Department of Central Management Services
21by this amendatory Act shall be vested in and shall be
22exercised by the Commission on Equity and Inclusion.
23    Whenever reports or notices are now required to be made or
24given or papers or documents furnished or served by any person
25to or upon the Department of Central Management Services in
26connection with any of the powers, duties, rights, and

 

 

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1responsibilities transferred by this amendatory Act, the same
2shall be made, given, furnished, or served in the same manner
3to or upon the Commission on Equity and Inclusion.
4    This amendatory Act of the 102nd General Assembly does not
5affect any act done, ratified, or canceled or any right
6occurring or established or any action or proceeding had or
7commenced in an administrative, civil, or criminal cause by
8the Department of Central Management Services before this
9amendatory Act takes effect; such actions or proceedings may
10be prosecuted and continued by the Commission on Equity and
11Inclusion.
12    Any rules of the Department of Central Management Services
13that relate to its powers, duties, rights, and
14responsibilities under this Section and are in full force on
15the effective date of this amendatory Act of the 102nd General
16Assembly shall become the rules of the Commission on Equity
17and Inclusion. This amendatory Act does not affect the
18legality of any such rules in the Illinois Administrative
19Code. Any proposed rules filed with the Secretary of State by
20the Department of Central Management Services that are pending
21in the rulemaking process on the effective date of this
22amendatory Act and pertain to the powers, duties, rights, and
23responsibilities transferred, shall be deemed to have been
24filed by the Commission on Equity and Inclusion. As soon as
25practicable hereafter, the Commission on Equity and Inclusion
26shall revise and clarify the rules transferred to it under

 

 

HB5640 Engrossed- 37 -LRB103 38934 KTG 69071 b

1this amendatory Act to reflect the reorganization of powers,
2duties, rights, and responsibilities affected by this
3amendatory Act, using the procedures for recodification of
4rules available under the Illinois Administrative Procedure
5Act, except that existing title, part, and section numbering
6for the affected rules may be retained. The Commission on
7Equity and Inclusion may propose and adopt under the Illinois
8Administrative Procedure Act such other rules of the
9Department of Central Management Services that will now be
10administered by the Commission on Equity and Inclusion.
11(Source: P.A. 102-166, eff. 7-26-21; 102-671, eff. 11-30-21;
12103-570, eff. 1-1-24.)
 
13    Section 40. The Use Tax Act is amended by changing Section
143-5 as follows:
 
15    (35 ILCS 105/3-5)
16    Sec. 3-5. Exemptions. Use of the following tangible
17personal property is exempt from the tax imposed by this Act:
18    (1) Personal property purchased from a corporation,
19society, association, foundation, institution, or
20organization, other than a limited liability company, that is
21organized and operated as a not-for-profit service enterprise
22for the benefit of persons 65 years of age or older if the
23personal property was not purchased by the enterprise for the
24purpose of resale by the enterprise.

 

 

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1    (2) Personal property purchased by a not-for-profit
2Illinois county fair association for use in conducting,
3operating, or promoting the county fair.
4    (3) Personal property purchased by a not-for-profit arts
5or cultural organization that establishes, by proof required
6by the Department by rule, that it has received an exemption
7under Section 501(c)(3) of the Internal Revenue Code and that
8is organized and operated primarily for the presentation or
9support of arts or cultural programming, activities, or
10services. These organizations include, but are not limited to,
11music and dramatic arts organizations such as symphony
12orchestras and theatrical groups, arts and cultural service
13organizations, local arts councils, visual arts organizations,
14and media arts organizations. On and after July 1, 2001 (the
15effective date of Public Act 92-35), however, an entity
16otherwise eligible for this exemption shall not make tax-free
17purchases unless it has an active identification number issued
18by the Department.
19    (4) Except as otherwise provided in this Act, personal
20property purchased by a governmental body, by a corporation,
21society, association, foundation, or institution organized and
22operated exclusively for charitable, religious, or educational
23purposes, or by a not-for-profit corporation, society,
24association, foundation, institution, or organization that has
25no compensated officers or employees and that is organized and
26operated primarily for the recreation of persons 55 years of

 

 

HB5640 Engrossed- 39 -LRB103 38934 KTG 69071 b

1age or older. A limited liability company may qualify for the
2exemption under this paragraph only if the limited liability
3company is organized and operated exclusively for educational
4purposes. On and after July 1, 1987, however, no entity
5otherwise eligible for this exemption shall make tax-free
6purchases unless it has an active exemption identification
7number issued by the Department.
8    (5) Until July 1, 2003, a passenger car that is a
9replacement vehicle to the extent that the purchase price of
10the car is subject to the Replacement Vehicle Tax.
11    (6) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order,
15certified by the purchaser to be used primarily for graphic
16arts production, and including machinery and equipment
17purchased for lease. Equipment includes chemicals or chemicals
18acting as catalysts but only if the chemicals or chemicals
19acting as catalysts effect a direct and immediate change upon
20a graphic arts product. Beginning on July 1, 2017, graphic
21arts machinery and equipment is included in the manufacturing
22and assembling machinery and equipment exemption under
23paragraph (18).
24    (7) Farm chemicals.
25    (8) Legal tender, currency, medallions, or gold or silver
26coinage issued by the State of Illinois, the government of the

 

 

HB5640 Engrossed- 40 -LRB103 38934 KTG 69071 b

1United States of America, or the government of any foreign
2country, and bullion.
3    (9) Personal property purchased from a teacher-sponsored
4student organization affiliated with an elementary or
5secondary school located in Illinois.
6    (10) A motor vehicle that is used for automobile renting,
7as defined in the Automobile Renting Occupation and Use Tax
8Act.
9    (11) Farm machinery and equipment, both new and used,
10including that manufactured on special order, certified by the
11purchaser to be used primarily for production agriculture or
12State or federal agricultural programs, including individual
13replacement parts for the machinery and equipment, including
14machinery and equipment purchased for lease, and including
15implements of husbandry defined in Section 1-130 of the
16Illinois Vehicle Code, farm machinery and agricultural
17chemical and fertilizer spreaders, and nurse wagons required
18to be registered under Section 3-809 of the Illinois Vehicle
19Code, but excluding other motor vehicles required to be
20registered under the Illinois Vehicle Code. Horticultural
21polyhouses or hoop houses used for propagating, growing, or
22overwintering plants shall be considered farm machinery and
23equipment under this item (11). Agricultural chemical tender
24tanks and dry boxes shall include units sold separately from a
25motor vehicle required to be licensed and units sold mounted
26on a motor vehicle required to be licensed if the selling price

 

 

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1of the tender is separately stated.
2    Farm machinery and equipment shall include precision
3farming equipment that is installed or purchased to be
4installed on farm machinery and equipment, including, but not
5limited to, tractors, harvesters, sprayers, planters, seeders,
6or spreaders. Precision farming equipment includes, but is not
7limited to, soil testing sensors, computers, monitors,
8software, global positioning and mapping systems, and other
9such equipment.
10    Farm machinery and equipment also includes computers,
11sensors, software, and related equipment used primarily in the
12computer-assisted operation of production agriculture
13facilities, equipment, and activities such as, but not limited
14to, the collection, monitoring, and correlation of animal and
15crop data for the purpose of formulating animal diets and
16agricultural chemicals.
17    Beginning on January 1, 2024, farm machinery and equipment
18also includes electrical power generation equipment used
19primarily for production agriculture.
20    This item (11) is exempt from the provisions of Section
213-90.
22    (12) Until June 30, 2013, fuel and petroleum products sold
23to or used by an air common carrier, certified by the carrier
24to be used for consumption, shipment, or storage in the
25conduct of its business as an air common carrier, for a flight
26destined for or returning from a location or locations outside

 

 

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1the United States without regard to previous or subsequent
2domestic stopovers.
3    Beginning July 1, 2013, fuel and petroleum products sold
4to or used by an air carrier, certified by the carrier to be
5used for consumption, shipment, or storage in the conduct of
6its business as an air common carrier, for a flight that (i) is
7engaged in foreign trade or is engaged in trade between the
8United States and any of its possessions and (ii) transports
9at least one individual or package for hire from the city of
10origination to the city of final destination on the same
11aircraft, without regard to a change in the flight number of
12that aircraft.
13    (13) Proceeds of mandatory service charges separately
14stated on customers' bills for the purchase and consumption of
15food and beverages purchased at retail from a retailer, to the
16extent that the proceeds of the service charge are in fact
17turned over as tips or as a substitute for tips to the
18employees who participate directly in preparing, serving,
19hosting or cleaning up the food or beverage function with
20respect to which the service charge is imposed.
21    (14) Until July 1, 2003, oil field exploration, drilling,
22and production equipment, including (i) rigs and parts of
23rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
24pipe and tubular goods, including casing and drill strings,
25(iii) pumps and pump-jack units, (iv) storage tanks and flow
26lines, (v) any individual replacement part for oil field

 

 

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1exploration, drilling, and production equipment, and (vi)
2machinery and equipment purchased for lease; but excluding
3motor vehicles required to be registered under the Illinois
4Vehicle Code.
5    (15) Photoprocessing machinery and equipment, including
6repair and replacement parts, both new and used, including
7that manufactured on special order, certified by the purchaser
8to be used primarily for photoprocessing, and including
9photoprocessing machinery and equipment purchased for lease.
10    (16) Until July 1, 2028, coal and aggregate exploration,
11mining, off-highway hauling, processing, maintenance, and
12reclamation equipment, including replacement parts and
13equipment, and including equipment purchased for lease, but
14excluding motor vehicles required to be registered under the
15Illinois Vehicle Code. The changes made to this Section by
16Public Act 97-767 apply on and after July 1, 2003, but no claim
17for credit or refund is allowed on or after August 16, 2013
18(the effective date of Public Act 98-456) for such taxes paid
19during the period beginning July 1, 2003 and ending on August
2016, 2013 (the effective date of Public Act 98-456).
21    (17) Until July 1, 2003, distillation machinery and
22equipment, sold as a unit or kit, assembled or installed by the
23retailer, certified by the user to be used only for the
24production of ethyl alcohol that will be used for consumption
25as motor fuel or as a component of motor fuel for the personal
26use of the user, and not subject to sale or resale.

 

 

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1    (18) Manufacturing and assembling machinery and equipment
2used primarily in the process of manufacturing or assembling
3tangible personal property for wholesale or retail sale or
4lease, whether that sale or lease is made directly by the
5manufacturer or by some other person, whether the materials
6used in the process are owned by the manufacturer or some other
7person, or whether that sale or lease is made apart from or as
8an incident to the seller's engaging in the service occupation
9of producing machines, tools, dies, jigs, patterns, gauges, or
10other similar items of no commercial value on special order
11for a particular purchaser. The exemption provided by this
12paragraph (18) includes production related tangible personal
13property, as defined in Section 3-50, purchased on or after
14July 1, 2019. The exemption provided by this paragraph (18)
15does not include machinery and equipment used in (i) the
16generation of electricity for wholesale or retail sale; (ii)
17the generation or treatment of natural or artificial gas for
18wholesale or retail sale that is delivered to customers
19through pipes, pipelines, or mains; or (iii) the treatment of
20water for wholesale or retail sale that is delivered to
21customers through pipes, pipelines, or mains. The provisions
22of Public Act 98-583 are declaratory of existing law as to the
23meaning and scope of this exemption. Beginning on July 1,
242017, the exemption provided by this paragraph (18) includes,
25but is not limited to, graphic arts machinery and equipment,
26as defined in paragraph (6) of this Section.

 

 

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1    (19) Personal property delivered to a purchaser or
2purchaser's donee inside Illinois when the purchase order for
3that personal property was received by a florist located
4outside Illinois who has a florist located inside Illinois
5deliver the personal property.
6    (20) Semen used for artificial insemination of livestock
7for direct agricultural production.
8    (21) Horses, or interests in horses, registered with and
9meeting the requirements of any of the Arabian Horse Club
10Registry of America, Appaloosa Horse Club, American Quarter
11Horse Association, United States Trotting Association, or
12Jockey Club, as appropriate, used for purposes of breeding or
13racing for prizes. This item (21) is exempt from the
14provisions of Section 3-90, and the exemption provided for
15under this item (21) applies for all periods beginning May 30,
161995, but no claim for credit or refund is allowed on or after
17January 1, 2008 for such taxes paid during the period
18beginning May 30, 2000 and ending on January 1, 2008.
19    (22) Computers and communications equipment utilized for
20any hospital purpose and equipment used in the diagnosis,
21analysis, or treatment of hospital patients purchased by a
22lessor who leases the equipment, under a lease of one year or
23longer executed or in effect at the time the lessor would
24otherwise be subject to the tax imposed by this Act, to a
25hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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1the Retailers' Occupation Tax Act. If the equipment is leased
2in a manner that does not qualify for this exemption or is used
3in any other non-exempt manner, the lessor shall be liable for
4the tax imposed under this Act or the Service Use Tax Act, as
5the case may be, based on the fair market value of the property
6at the time the non-qualifying use occurs. No lessor shall
7collect or attempt to collect an amount (however designated)
8that purports to reimburse that lessor for the tax imposed by
9this Act or the Service Use Tax Act, as the case may be, if the
10tax has not been paid by the lessor. If a lessor improperly
11collects any such amount from the lessee, the lessee shall
12have a legal right to claim a refund of that amount from the
13lessor. If, however, that amount is not refunded to the lessee
14for any reason, the lessor is liable to pay that amount to the
15Department.
16    (23) Personal property purchased by a lessor who leases
17the property, under a lease of one year or longer executed or
18in effect at the time the lessor would otherwise be subject to
19the tax imposed by this Act, to a governmental body that has
20been issued an active sales tax exemption identification
21number by the Department under Section 1g of the Retailers'
22Occupation Tax Act. If the property is leased in a manner that
23does not qualify for this exemption or used in any other
24non-exempt manner, the lessor shall be liable for the tax
25imposed under this Act or the Service Use Tax Act, as the case
26may be, based on the fair market value of the property at the

 

 

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1time the non-qualifying use occurs. No lessor shall collect or
2attempt to collect an amount (however designated) that
3purports to reimburse that lessor for the tax imposed by this
4Act or the Service Use Tax Act, as the case may be, if the tax
5has not been paid by the lessor. If a lessor improperly
6collects any such amount from the lessee, the lessee shall
7have a legal right to claim a refund of that amount from the
8lessor. If, however, that amount is not refunded to the lessee
9for any reason, the lessor is liable to pay that amount to the
10Department.
11    (24) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is donated
14for disaster relief to be used in a State or federally declared
15disaster area in Illinois or bordering Illinois by a
16manufacturer or retailer that is registered in this State to a
17corporation, society, association, foundation, or institution
18that has been issued a sales tax exemption identification
19number by the Department that assists victims of the disaster
20who reside within the declared disaster area.
21    (25) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is used in
24the performance of infrastructure repairs in this State,
25including, but not limited to, municipal roads and streets,
26access roads, bridges, sidewalks, waste disposal systems,

 

 

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1water and sewer line extensions, water distribution and
2purification facilities, storm water drainage and retention
3facilities, and sewage treatment facilities, resulting from a
4State or federally declared disaster in Illinois or bordering
5Illinois when such repairs are initiated on facilities located
6in the declared disaster area within 6 months after the
7disaster.
8    (26) Beginning July 1, 1999, game or game birds purchased
9at a "game breeding and hunting preserve area" as that term is
10used in the Wildlife Code. This paragraph is exempt from the
11provisions of Section 3-90.
12    (27) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the
16Department to be organized and operated exclusively for
17educational purposes. For purposes of this exemption, "a
18corporation, limited liability company, society, association,
19foundation, or institution organized and operated exclusively
20for educational purposes" means all tax-supported public
21schools, private schools that offer systematic instruction in
22useful branches of learning by methods common to public
23schools and that compare favorably in their scope and
24intensity with the course of study presented in tax-supported
25schools, and vocational or technical schools or institutes
26organized and operated exclusively to provide a course of

 

 

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1study of not less than 6 weeks duration and designed to prepare
2individuals to follow a trade or to pursue a manual,
3technical, mechanical, industrial, business, or commercial
4occupation.
5    (28) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-90.
19    (29) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and
22other items, and replacement parts for these machines.
23Beginning January 1, 2002 and through June 30, 2003, machines
24and parts for machines used in commercial, coin-operated
25amusement and vending business if a use or occupation tax is
26paid on the gross receipts derived from the use of the

 

 

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1commercial, coin-operated amusement and vending machines. This
2paragraph is exempt from the provisions of Section 3-90.
3    (30) Beginning January 1, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages,
6soft drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (31) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), computers and communications equipment
18utilized for any hospital purpose and equipment used in the
19diagnosis, analysis, or treatment of hospital patients
20purchased by a lessor who leases the equipment, under a lease
21of one year or longer executed or in effect at the time the
22lessor would otherwise be subject to the tax imposed by this
23Act, to a hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25the Retailers' Occupation Tax Act. If the equipment is leased
26in a manner that does not qualify for this exemption or is used

 

 

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1in any other nonexempt manner, the lessor shall be liable for
2the tax imposed under this Act or the Service Use Tax Act, as
3the case may be, based on the fair market value of the property
4at the time the nonqualifying use occurs. No lessor shall
5collect or attempt to collect an amount (however designated)
6that purports to reimburse that lessor for the tax imposed by
7this Act or the Service Use Tax Act, as the case may be, if the
8tax has not been paid by the lessor. If a lessor improperly
9collects any such amount from the lessee, the lessee shall
10have a legal right to claim a refund of that amount from the
11lessor. If, however, that amount is not refunded to the lessee
12for any reason, the lessor is liable to pay that amount to the
13Department. This paragraph is exempt from the provisions of
14Section 3-90.
15    (32) Beginning on August 2, 2001 (the effective date of
16Public Act 92-227), personal property purchased by a lessor
17who leases the property, under a lease of one year or longer
18executed or in effect at the time the lessor would otherwise be
19subject to the tax imposed by this Act, to a governmental body
20that has been issued an active sales tax exemption
21identification number by the Department under Section 1g of
22the Retailers' Occupation Tax Act. If the property is leased
23in a manner that does not qualify for this exemption or used in
24any other nonexempt manner, the lessor shall be liable for the
25tax imposed under this Act or the Service Use Tax Act, as the
26case may be, based on the fair market value of the property at

 

 

HB5640 Engrossed- 52 -LRB103 38934 KTG 69071 b

1the time the nonqualifying use occurs. No lessor shall collect
2or attempt to collect an amount (however designated) that
3purports to reimburse that lessor for the tax imposed by this
4Act or the Service Use Tax Act, as the case may be, if the tax
5has not been paid by the lessor. If a lessor improperly
6collects any such amount from the lessee, the lessee shall
7have a legal right to claim a refund of that amount from the
8lessor. If, however, that amount is not refunded to the lessee
9for any reason, the lessor is liable to pay that amount to the
10Department. This paragraph is exempt from the provisions of
11Section 3-90.
12    (33) On and after July 1, 2003 and through June 30, 2004,
13the use in this State of motor vehicles of the second division
14with a gross vehicle weight in excess of 8,000 pounds and that
15are subject to the commercial distribution fee imposed under
16Section 3-815.1 of the Illinois Vehicle Code. Beginning on
17July 1, 2004 and through June 30, 2005, the use in this State
18of motor vehicles of the second division: (i) with a gross
19vehicle weight rating in excess of 8,000 pounds; (ii) that are
20subject to the commercial distribution fee imposed under
21Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
22are primarily used for commercial purposes. Through June 30,
232005, this exemption applies to repair and replacement parts
24added after the initial purchase of such a motor vehicle if
25that motor vehicle is used in a manner that would qualify for
26the rolling stock exemption otherwise provided for in this

 

 

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1Act. For purposes of this paragraph, the term "used for
2commercial purposes" means the transportation of persons or
3property in furtherance of any commercial or industrial
4enterprise, whether for-hire or not.
5    (34) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued
10under Title IV of the Environmental Protection Act. This
11paragraph is exempt from the provisions of Section 3-90.
12    (35) Beginning January 1, 2010 and continuing through
13December 31, 2029, materials, parts, equipment, components,
14and furnishings incorporated into or upon an aircraft as part
15of the modification, refurbishment, completion, replacement,
16repair, or maintenance of the aircraft. This exemption
17includes consumable supplies used in the modification,
18refurbishment, completion, replacement, repair, and
19maintenance of aircraft. However, until January 1, 2024, this
20exemption excludes any materials, parts, equipment,
21components, and consumable supplies used in the modification,
22replacement, repair, and maintenance of aircraft engines or
23power plants, whether such engines or power plants are
24installed or uninstalled upon any such aircraft. "Consumable
25supplies" include, but are not limited to, adhesive, tape,
26sandpaper, general purpose lubricants, cleaning solution,

 

 

HB5640 Engrossed- 54 -LRB103 38934 KTG 69071 b

1latex gloves, and protective films.
2    Beginning January 1, 2010 and continuing through December
331, 2023, this exemption applies only to the use of qualifying
4tangible personal property by persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations. From January 1, 2024 through December 31, 2029,
11this exemption applies only to the use of qualifying tangible
12personal property by: (A) persons who modify, refurbish,
13complete, repair, replace, or maintain aircraft and who (i)
14hold an Air Agency Certificate and are empowered to operate an
15approved repair station by the Federal Aviation
16Administration, (ii) have a Class IV Rating, and (iii) conduct
17operations in accordance with Part 145 of the Federal Aviation
18Regulations; and (B) persons who engage in the modification,
19replacement, repair, and maintenance of aircraft engines or
20power plants without regard to whether or not those persons
21meet the qualifications of item (A).
22    The exemption does not include aircraft operated by a
23commercial air carrier providing scheduled passenger air
24service pursuant to authority issued under Part 121 or Part
25129 of the Federal Aviation Regulations. The changes made to
26this paragraph (35) by Public Act 98-534 are declarative of

 

 

HB5640 Engrossed- 55 -LRB103 38934 KTG 69071 b

1existing law. It is the intent of the General Assembly that the
2exemption under this paragraph (35) applies continuously from
3January 1, 2010 through December 31, 2024; however, no claim
4for credit or refund is allowed for taxes paid as a result of
5the disallowance of this exemption on or after January 1, 2015
6and prior to February 5, 2020 (the effective date of Public Act
7101-629).
8    (36) Tangible personal property purchased by a
9public-facilities corporation, as described in Section
1011-65-10 of the Illinois Municipal Code, for purposes of
11constructing or furnishing a municipal convention hall, but
12only if the legal title to the municipal convention hall is
13transferred to the municipality without any further
14consideration by or on behalf of the municipality at the time
15of the completion of the municipal convention hall or upon the
16retirement or redemption of any bonds or other debt
17instruments issued by the public-facilities corporation in
18connection with the development of the municipal convention
19hall. This exemption includes existing public-facilities
20corporations as provided in Section 11-65-25 of the Illinois
21Municipal Code. This paragraph is exempt from the provisions
22of Section 3-90.
23    (37) Beginning January 1, 2017 and through December 31,
242026, menstrual pads, tampons, and menstrual cups.
25    (38) Merchandise that is subject to the Rental Purchase
26Agreement Occupation and Use Tax. The purchaser must certify

 

 

HB5640 Engrossed- 56 -LRB103 38934 KTG 69071 b

1that the item is purchased to be rented subject to a
2rental-purchase rental purchase agreement, as defined in the
3Rental-Purchase Rental Purchase Agreement Act, and provide
4proof of registration under the Rental Purchase Agreement
5Occupation and Use Tax Act. This paragraph is exempt from the
6provisions of Section 3-90.
7    (39) Tangible personal property purchased by a purchaser
8who is exempt from the tax imposed by this Act by operation of
9federal law. This paragraph is exempt from the provisions of
10Section 3-90.
11    (40) Qualified tangible personal property used in the
12construction or operation of a data center that has been
13granted a certificate of exemption by the Department of
14Commerce and Economic Opportunity, whether that tangible
15personal property is purchased by the owner, operator, or
16tenant of the data center or by a contractor or subcontractor
17of the owner, operator, or tenant. Data centers that would
18have qualified for a certificate of exemption prior to January
191, 2020 had Public Act 101-31 been in effect may apply for and
20obtain an exemption for subsequent purchases of computer
21equipment or enabling software purchased or leased to upgrade,
22supplement, or replace computer equipment or enabling software
23purchased or leased in the original investment that would have
24qualified.
25    The Department of Commerce and Economic Opportunity shall
26grant a certificate of exemption under this item (40) to

 

 

HB5640 Engrossed- 57 -LRB103 38934 KTG 69071 b

1qualified data centers as defined by Section 605-1025 of the
2Department of Commerce and Economic Opportunity Law of the
3Civil Administrative Code of Illinois.
4    For the purposes of this item (40):
5        "Data center" means a building or a series of
6    buildings rehabilitated or constructed to house working
7    servers in one physical location or multiple sites within
8    the State of Illinois.
9        "Qualified tangible personal property" means:
10    electrical systems and equipment; climate control and
11    chilling equipment and systems; mechanical systems and
12    equipment; monitoring and secure systems; emergency
13    generators; hardware; computers; servers; data storage
14    devices; network connectivity equipment; racks; cabinets;
15    telecommunications cabling infrastructure; raised floor
16    systems; peripheral components or systems; software;
17    mechanical, electrical, or plumbing systems; battery
18    systems; cooling systems and towers; temperature control
19    systems; other cabling; and other data center
20    infrastructure equipment and systems necessary to operate
21    qualified tangible personal property, including fixtures;
22    and component parts of any of the foregoing, including
23    installation, maintenance, repair, refurbishment, and
24    replacement of qualified tangible personal property to
25    generate, transform, transmit, distribute, or manage
26    electricity necessary to operate qualified tangible

 

 

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1    personal property; and all other tangible personal
2    property that is essential to the operations of a computer
3    data center. The term "qualified tangible personal
4    property" also includes building materials physically
5    incorporated into in to the qualifying data center. To
6    document the exemption allowed under this Section, the
7    retailer must obtain from the purchaser a copy of the
8    certificate of eligibility issued by the Department of
9    Commerce and Economic Opportunity.
10    This item (40) is exempt from the provisions of Section
113-90.
12    (41) Beginning July 1, 2022, breast pumps, breast pump
13collection and storage supplies, and breast pump kits. This
14item (41) is exempt from the provisions of Section 3-90. As
15used in this item (41):
16        "Breast pump" means an electrically controlled or
17    manually controlled pump device designed or marketed to be
18    used to express milk from a human breast during lactation,
19    including the pump device and any battery, AC adapter, or
20    other power supply unit that is used to power the pump
21    device and is packaged and sold with the pump device at the
22    time of sale.
23        "Breast pump collection and storage supplies" means
24    items of tangible personal property designed or marketed
25    to be used in conjunction with a breast pump to collect
26    milk expressed from a human breast and to store collected

 

 

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1    milk until it is ready for consumption.
2        "Breast pump collection and storage supplies"
3    includes, but is not limited to: breast shields and breast
4    shield connectors; breast pump tubes and tubing adapters;
5    breast pump valves and membranes; backflow protectors and
6    backflow protector adaptors; bottles and bottle caps
7    specific to the operation of the breast pump; and breast
8    milk storage bags.
9        "Breast pump collection and storage supplies" does not
10    include: (1) bottles and bottle caps not specific to the
11    operation of the breast pump; (2) breast pump travel bags
12    and other similar carrying accessories, including ice
13    packs, labels, and other similar products; (3) breast pump
14    cleaning supplies; (4) nursing bras, bra pads, breast
15    shells, and other similar products; and (5) creams,
16    ointments, and other similar products that relieve
17    breastfeeding-related symptoms or conditions of the
18    breasts or nipples, unless sold as part of a breast pump
19    kit that is pre-packaged by the breast pump manufacturer
20    or distributor.
21        "Breast pump kit" means a kit that: (1) contains no
22    more than a breast pump, breast pump collection and
23    storage supplies, a rechargeable battery for operating the
24    breast pump, a breastmilk cooler, bottle stands, ice
25    packs, and a breast pump carrying case; and (2) is
26    pre-packaged as a breast pump kit by the breast pump

 

 

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1    manufacturer or distributor.
2    (42) Tangible personal property sold by or on behalf of
3the State Treasurer pursuant to the Revised Uniform Unclaimed
4Property Act. This item (42) is exempt from the provisions of
5Section 3-90.
6    (43) Beginning on January 1, 2024, tangible personal
7property purchased by an active duty member of the armed
8forces of the United States who presents valid military
9identification and purchases the property using a form of
10payment where the federal government is the payor. The member
11of the armed forces must complete, at the point of sale, a form
12prescribed by the Department of Revenue documenting that the
13transaction is eligible for the exemption under this
14paragraph. Retailers must keep the form as documentation of
15the exemption in their records for a period of not less than 6
16years. "Armed forces of the United States" means the United
17States Army, Navy, Air Force, Space Force, Marine Corps, or
18Coast Guard. This paragraph is exempt from the provisions of
19Section 3-90.
20(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
21Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
22eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
23Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
24eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
25revised 12-12-23.)
 

 

 

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1    Section 45. The Service Use Tax Act is amended by changing
2Section 3-5 as follows:
 
3    (35 ILCS 110/3-5)
4    Sec. 3-5. Exemptions. Use of the following tangible
5personal property is exempt from the tax imposed by this Act:
6    (1) Personal property purchased from a corporation,
7society, association, foundation, institution, or
8organization, other than a limited liability company, that is
9organized and operated as a not-for-profit service enterprise
10for the benefit of persons 65 years of age or older if the
11personal property was not purchased by the enterprise for the
12purpose of resale by the enterprise.
13    (2) Personal property purchased by a non-profit Illinois
14county fair association for use in conducting, operating, or
15promoting the county fair.
16    (3) Personal property purchased by a not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service
25organizations, local arts councils, visual arts organizations,

 

 

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1and media arts organizations. On and after July 1, 2001 (the
2effective date of Public Act 92-35), however, an entity
3otherwise eligible for this exemption shall not make tax-free
4purchases unless it has an active identification number issued
5by the Department.
6    (4) Legal tender, currency, medallions, or gold or silver
7coinage issued by the State of Illinois, the government of the
8United States of America, or the government of any foreign
9country, and bullion.
10    (5) Until July 1, 2003 and beginning again on September 1,
112004 through August 30, 2014, graphic arts machinery and
12equipment, including repair and replacement parts, both new
13and used, and including that manufactured on special order or
14purchased for lease, certified by the purchaser to be used
15primarily for graphic arts production. Equipment includes
16chemicals or chemicals acting as catalysts but only if the
17chemicals or chemicals acting as catalysts effect a direct and
18immediate change upon a graphic arts product. Beginning on
19July 1, 2017, graphic arts machinery and equipment is included
20in the manufacturing and assembling machinery and equipment
21exemption under Section 2 of this Act.
22    (6) Personal property purchased from a teacher-sponsored
23student organization affiliated with an elementary or
24secondary school located in Illinois.
25    (7) Farm machinery and equipment, both new and used,
26including that manufactured on special order, certified by the

 

 

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1purchaser to be used primarily for production agriculture or
2State or federal agricultural programs, including individual
3replacement parts for the machinery and equipment, including
4machinery and equipment purchased for lease, and including
5implements of husbandry defined in Section 1-130 of the
6Illinois Vehicle Code, farm machinery and agricultural
7chemical and fertilizer spreaders, and nurse wagons required
8to be registered under Section 3-809 of the Illinois Vehicle
9Code, but excluding other motor vehicles required to be
10registered under the Illinois Vehicle Code. Horticultural
11polyhouses or hoop houses used for propagating, growing, or
12overwintering plants shall be considered farm machinery and
13equipment under this item (7). Agricultural chemical tender
14tanks and dry boxes shall include units sold separately from a
15motor vehicle required to be licensed and units sold mounted
16on a motor vehicle required to be licensed if the selling price
17of the tender is separately stated.
18    Farm machinery and equipment shall include precision
19farming equipment that is installed or purchased to be
20installed on farm machinery and equipment, including, but not
21limited to, tractors, harvesters, sprayers, planters, seeders,
22or spreaders. Precision farming equipment includes, but is not
23limited to, soil testing sensors, computers, monitors,
24software, global positioning and mapping systems, and other
25such equipment.
26    Farm machinery and equipment also includes computers,

 

 

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1sensors, software, and related equipment used primarily in the
2computer-assisted operation of production agriculture
3facilities, equipment, and activities such as, but not limited
4to, the collection, monitoring, and correlation of animal and
5crop data for the purpose of formulating animal diets and
6agricultural chemicals.
7    Beginning on January 1, 2024, farm machinery and equipment
8also includes electrical power generation equipment used
9primarily for production agriculture.
10    This item (7) is exempt from the provisions of Section
113-75.
12    (8) Until June 30, 2013, fuel and petroleum products sold
13to or used by an air common carrier, certified by the carrier
14to be used for consumption, shipment, or storage in the
15conduct of its business as an air common carrier, for a flight
16destined for or returning from a location or locations outside
17the United States without regard to previous or subsequent
18domestic stopovers.
19    Beginning July 1, 2013, fuel and petroleum products sold
20to or used by an air carrier, certified by the carrier to be
21used for consumption, shipment, or storage in the conduct of
22its business as an air common carrier, for a flight that (i) is
23engaged in foreign trade or is engaged in trade between the
24United States and any of its possessions and (ii) transports
25at least one individual or package for hire from the city of
26origination to the city of final destination on the same

 

 

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1aircraft, without regard to a change in the flight number of
2that aircraft.
3    (9) Proceeds of mandatory service charges separately
4stated on customers' bills for the purchase and consumption of
5food and beverages acquired as an incident to the purchase of a
6service from a serviceman, to the extent that the proceeds of
7the service charge are in fact turned over as tips or as a
8substitute for tips to the employees who participate directly
9in preparing, serving, hosting or cleaning up the food or
10beverage function with respect to which the service charge is
11imposed.
12    (10) Until July 1, 2003, oil field exploration, drilling,
13and production equipment, including (i) rigs and parts of
14rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
15pipe and tubular goods, including casing and drill strings,
16(iii) pumps and pump-jack units, (iv) storage tanks and flow
17lines, (v) any individual replacement part for oil field
18exploration, drilling, and production equipment, and (vi)
19machinery and equipment purchased for lease; but excluding
20motor vehicles required to be registered under the Illinois
21Vehicle Code.
22    (11) Proceeds from the sale of photoprocessing machinery
23and equipment, including repair and replacement parts, both
24new and used, including that manufactured on special order,
25certified by the purchaser to be used primarily for
26photoprocessing, and including photoprocessing machinery and

 

 

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1equipment purchased for lease.
2    (12) Until July 1, 2028, coal and aggregate exploration,
3mining, off-highway hauling, processing, maintenance, and
4reclamation equipment, including replacement parts and
5equipment, and including equipment purchased for lease, but
6excluding motor vehicles required to be registered under the
7Illinois Vehicle Code. The changes made to this Section by
8Public Act 97-767 apply on and after July 1, 2003, but no claim
9for credit or refund is allowed on or after August 16, 2013
10(the effective date of Public Act 98-456) for such taxes paid
11during the period beginning July 1, 2003 and ending on August
1216, 2013 (the effective date of Public Act 98-456).
13    (13) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (14) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (14) is exempt from the
21provisions of Section 3-75, and the exemption provided for
22under this item (14) applies for all periods beginning May 30,
231995, but no claim for credit or refund is allowed on or after
24January 1, 2008 (the effective date of Public Act 95-88) for
25such taxes paid during the period beginning May 30, 2000 and
26ending on January 1, 2008 (the effective date of Public Act

 

 

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195-88).
2    (15) Computers and communications equipment utilized for
3any hospital purpose and equipment used in the diagnosis,
4analysis, or treatment of hospital patients purchased by a
5lessor who leases the equipment, under a lease of one year or
6longer executed or in effect at the time the lessor would
7otherwise be subject to the tax imposed by this Act, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. If the equipment is leased
11in a manner that does not qualify for this exemption or is used
12in any other non-exempt manner, the lessor shall be liable for
13the tax imposed under this Act or the Use Tax Act, as the case
14may be, based on the fair market value of the property at the
15time the non-qualifying use occurs. No lessor shall collect or
16attempt to collect an amount (however designated) that
17purports to reimburse that lessor for the tax imposed by this
18Act or the Use Tax Act, as the case may be, if the tax has not
19been paid by the lessor. If a lessor improperly collects any
20such amount from the lessee, the lessee shall have a legal
21right to claim a refund of that amount from the lessor. If,
22however, that amount is not refunded to the lessee for any
23reason, the lessor is liable to pay that amount to the
24Department.
25    (16) Personal property purchased by a lessor who leases
26the property, under a lease of one year or longer executed or

 

 

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1in effect at the time the lessor would otherwise be subject to
2the tax imposed by this Act, to a governmental body that has
3been issued an active tax exemption identification number by
4the Department under Section 1g of the Retailers' Occupation
5Tax Act. If the property is leased in a manner that does not
6qualify for this exemption or is used in any other non-exempt
7manner, the lessor shall be liable for the tax imposed under
8this Act or the Use Tax Act, as the case may be, based on the
9fair market value of the property at the time the
10non-qualifying use occurs. No lessor shall collect or attempt
11to collect an amount (however designated) that purports to
12reimburse that lessor for the tax imposed by this Act or the
13Use Tax Act, as the case may be, if the tax has not been paid
14by the lessor. If a lessor improperly collects any such amount
15from the lessee, the lessee shall have a legal right to claim a
16refund of that amount from the lessor. If, however, that
17amount is not refunded to the lessee for any reason, the lessor
18is liable to pay that amount to the Department.
19    (17) Beginning with taxable years ending on or after
20December 31, 1995 and ending with taxable years ending on or
21before December 31, 2004, personal property that is donated
22for disaster relief to be used in a State or federally declared
23disaster area in Illinois or bordering Illinois by a
24manufacturer or retailer that is registered in this State to a
25corporation, society, association, foundation, or institution
26that has been issued a sales tax exemption identification

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (18) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in
6the performance of infrastructure repairs in this State,
7including, but not limited to, municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (19) Beginning July 1, 1999, game or game birds purchased
17at a "game breeding and hunting preserve area" as that term is
18used in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-75.
20    (20) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

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1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (21) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-75.

 

 

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1    (22) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-75.
11    (23) Beginning August 23, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14soft drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or in a licensed facility as defined
22in the ID/DD Community Care Act, the MC/DD Act, or the
23Specialized Mental Health Rehabilitation Act of 2013.
24    (24) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), computers and communications equipment
26utilized for any hospital purpose and equipment used in the

 

 

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1diagnosis, analysis, or treatment of hospital patients
2purchased by a lessor who leases the equipment, under a lease
3of one year or longer executed or in effect at the time the
4lessor would otherwise be subject to the tax imposed by this
5Act, to a hospital that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the equipment is leased
8in a manner that does not qualify for this exemption or is used
9in any other nonexempt manner, the lessor shall be liable for
10the tax imposed under this Act or the Use Tax Act, as the case
11may be, based on the fair market value of the property at the
12time the nonqualifying use occurs. No lessor shall collect or
13attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Use Tax Act, as the case may be, if the tax has not
16been paid by the lessor. If a lessor improperly collects any
17such amount from the lessee, the lessee shall have a legal
18right to claim a refund of that amount from the lessor. If,
19however, that amount is not refunded to the lessee for any
20reason, the lessor is liable to pay that amount to the
21Department. This paragraph is exempt from the provisions of
22Section 3-75.
23    (25) Beginning on August 2, 2001 (the effective date of
24Public Act 92-227), personal property purchased by a lessor
25who leases the property, under a lease of one year or longer
26executed or in effect at the time the lessor would otherwise be

 

 

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1subject to the tax imposed by this Act, to a governmental body
2that has been issued an active tax exemption identification
3number by the Department under Section 1g of the Retailers'
4Occupation Tax Act. If the property is leased in a manner that
5does not qualify for this exemption or is used in any other
6nonexempt manner, the lessor shall be liable for the tax
7imposed under this Act or the Use Tax Act, as the case may be,
8based on the fair market value of the property at the time the
9nonqualifying use occurs. No lessor shall collect or attempt
10to collect an amount (however designated) that purports to
11reimburse that lessor for the tax imposed by this Act or the
12Use Tax Act, as the case may be, if the tax has not been paid
13by the lessor. If a lessor improperly collects any such amount
14from the lessee, the lessee shall have a legal right to claim a
15refund of that amount from the lessor. If, however, that
16amount is not refunded to the lessee for any reason, the lessor
17is liable to pay that amount to the Department. This paragraph
18is exempt from the provisions of Section 3-75.
19    (26) Beginning January 1, 2008, tangible personal property
20used in the construction or maintenance of a community water
21supply, as defined under Section 3.145 of the Environmental
22Protection Act, that is operated by a not-for-profit
23corporation that holds a valid water supply permit issued
24under Title IV of the Environmental Protection Act. This
25paragraph is exempt from the provisions of Section 3-75.
26    (27) Beginning January 1, 2010 and continuing through

 

 

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1December 31, 2029, materials, parts, equipment, components,
2and furnishings incorporated into or upon an aircraft as part
3of the modification, refurbishment, completion, replacement,
4repair, or maintenance of the aircraft. This exemption
5includes consumable supplies used in the modification,
6refurbishment, completion, replacement, repair, and
7maintenance of aircraft. However, until January 1, 2024, this
8exemption excludes any materials, parts, equipment,
9components, and consumable supplies used in the modification,
10replacement, repair, and maintenance of aircraft engines or
11power plants, whether such engines or power plants are
12installed or uninstalled upon any such aircraft. "Consumable
13supplies" include, but are not limited to, adhesive, tape,
14sandpaper, general purpose lubricants, cleaning solution,
15latex gloves, and protective films.
16    Beginning January 1, 2010 and continuing through December
1731, 2023, this exemption applies only to the use of qualifying
18tangible personal property transferred incident to the
19modification, refurbishment, completion, replacement, repair,
20or maintenance of aircraft by persons who (i) hold an Air
21Agency Certificate and are empowered to operate an approved
22repair station by the Federal Aviation Administration, (ii)
23have a Class IV Rating, and (iii) conduct operations in
24accordance with Part 145 of the Federal Aviation Regulations.
25From January 1, 2024 through December 31, 2029, this exemption
26applies only to the use of qualifying tangible personal

 

 

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1property by: (A) persons who modify, refurbish, complete,
2repair, replace, or maintain aircraft and who (i) hold an Air
3Agency Certificate and are empowered to operate an approved
4repair station by the Federal Aviation Administration, (ii)
5have a Class IV Rating, and (iii) conduct operations in
6accordance with Part 145 of the Federal Aviation Regulations;
7and (B) persons who engage in the modification, replacement,
8repair, and maintenance of aircraft engines or power plants
9without regard to whether or not those persons meet the
10qualifications of item (A).
11    The exemption does not include aircraft operated by a
12commercial air carrier providing scheduled passenger air
13service pursuant to authority issued under Part 121 or Part
14129 of the Federal Aviation Regulations. The changes made to
15this paragraph (27) by Public Act 98-534 are declarative of
16existing law. It is the intent of the General Assembly that the
17exemption under this paragraph (27) applies continuously from
18January 1, 2010 through December 31, 2024; however, no claim
19for credit or refund is allowed for taxes paid as a result of
20the disallowance of this exemption on or after January 1, 2015
21and prior to February 5, 2020 (the effective date of Public Act
22101-629).
23    (28) Tangible personal property purchased by a
24public-facilities corporation, as described in Section
2511-65-10 of the Illinois Municipal Code, for purposes of
26constructing or furnishing a municipal convention hall, but

 

 

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1only if the legal title to the municipal convention hall is
2transferred to the municipality without any further
3consideration by or on behalf of the municipality at the time
4of the completion of the municipal convention hall or upon the
5retirement or redemption of any bonds or other debt
6instruments issued by the public-facilities corporation in
7connection with the development of the municipal convention
8hall. This exemption includes existing public-facilities
9corporations as provided in Section 11-65-25 of the Illinois
10Municipal Code. This paragraph is exempt from the provisions
11of Section 3-75.
12    (29) Beginning January 1, 2017 and through December 31,
132026, menstrual pads, tampons, and menstrual cups.
14    (30) Tangible personal property transferred to a purchaser
15who is exempt from the tax imposed by this Act by operation of
16federal law. This paragraph is exempt from the provisions of
17Section 3-75.
18    (31) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would
25have qualified for a certificate of exemption prior to January
261, 2020 had Public Act 101-31 been in effect, may apply for and

 

 

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1obtain an exemption for subsequent purchases of computer
2equipment or enabling software purchased or leased to upgrade,
3supplement, or replace computer equipment or enabling software
4purchased or leased in the original investment that would have
5qualified.
6    The Department of Commerce and Economic Opportunity shall
7grant a certificate of exemption under this item (31) to
8qualified data centers as defined by Section 605-1025 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    For the purposes of this item (31):
12        "Data center" means a building or a series of
13    buildings rehabilitated or constructed to house working
14    servers in one physical location or multiple sites within
15    the State of Illinois.
16        "Qualified tangible personal property" means:
17    electrical systems and equipment; climate control and
18    chilling equipment and systems; mechanical systems and
19    equipment; monitoring and secure systems; emergency
20    generators; hardware; computers; servers; data storage
21    devices; network connectivity equipment; racks; cabinets;
22    telecommunications cabling infrastructure; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems; battery
25    systems; cooling systems and towers; temperature control
26    systems; other cabling; and other data center

 

 

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1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a computer
10    data center. The term "qualified tangible personal
11    property" also includes building materials physically
12    incorporated into in to the qualifying data center. To
13    document the exemption allowed under this Section, the
14    retailer must obtain from the purchaser a copy of the
15    certificate of eligibility issued by the Department of
16    Commerce and Economic Opportunity.
17    This item (31) is exempt from the provisions of Section
183-75.
19    (32) Beginning July 1, 2022, breast pumps, breast pump
20collection and storage supplies, and breast pump kits. This
21item (32) is exempt from the provisions of Section 3-75. As
22used in this item (32):
23        "Breast pump" means an electrically controlled or
24    manually controlled pump device designed or marketed to be
25    used to express milk from a human breast during lactation,
26    including the pump device and any battery, AC adapter, or

 

 

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1    other power supply unit that is used to power the pump
2    device and is packaged and sold with the pump device at the
3    time of sale.
4        "Breast pump collection and storage supplies" means
5    items of tangible personal property designed or marketed
6    to be used in conjunction with a breast pump to collect
7    milk expressed from a human breast and to store collected
8    milk until it is ready for consumption.
9        "Breast pump collection and storage supplies"
10    includes, but is not limited to: breast shields and breast
11    shield connectors; breast pump tubes and tubing adapters;
12    breast pump valves and membranes; backflow protectors and
13    backflow protector adaptors; bottles and bottle caps
14    specific to the operation of the breast pump; and breast
15    milk storage bags.
16        "Breast pump collection and storage supplies" does not
17    include: (1) bottles and bottle caps not specific to the
18    operation of the breast pump; (2) breast pump travel bags
19    and other similar carrying accessories, including ice
20    packs, labels, and other similar products; (3) breast pump
21    cleaning supplies; (4) nursing bras, bra pads, breast
22    shells, and other similar products; and (5) creams,
23    ointments, and other similar products that relieve
24    breastfeeding-related symptoms or conditions of the
25    breasts or nipples, unless sold as part of a breast pump
26    kit that is pre-packaged by the breast pump manufacturer

 

 

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1    or distributor.
2        "Breast pump kit" means a kit that: (1) contains no
3    more than a breast pump, breast pump collection and
4    storage supplies, a rechargeable battery for operating the
5    breast pump, a breastmilk cooler, bottle stands, ice
6    packs, and a breast pump carrying case; and (2) is
7    pre-packaged as a breast pump kit by the breast pump
8    manufacturer or distributor.
9    (33) Tangible personal property sold by or on behalf of
10the State Treasurer pursuant to the Revised Uniform Unclaimed
11Property Act. This item (33) is exempt from the provisions of
12Section 3-75.
13    (34) Beginning on January 1, 2024, tangible personal
14property purchased by an active duty member of the armed
15forces of the United States who presents valid military
16identification and purchases the property using a form of
17payment where the federal government is the payor. The member
18of the armed forces must complete, at the point of sale, a form
19prescribed by the Department of Revenue documenting that the
20transaction is eligible for the exemption under this
21paragraph. Retailers must keep the form as documentation of
22the exemption in their records for a period of not less than 6
23years. "Armed forces of the United States" means the United
24States Army, Navy, Air Force, Space Force, Marine Corps, or
25Coast Guard. This paragraph is exempt from the provisions of
26Section 3-75.

 

 

HB5640 Engrossed- 81 -LRB103 38934 KTG 69071 b

1(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
2Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
375-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
4Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
5eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
6revised 12-12-23.)
 
7    Section 50. The Service Occupation Tax Act is amended by
8changing Section 3-5 as follows:
 
9    (35 ILCS 115/3-5)
10    Sec. 3-5. Exemptions. The following tangible personal
11property is exempt from the tax imposed by this Act:
12    (1) Personal property sold by a corporation, society,
13association, foundation, institution, or organization, other
14than a limited liability company, that is organized and
15operated as a not-for-profit service enterprise for the
16benefit of persons 65 years of age or older if the personal
17property was not purchased by the enterprise for the purpose
18of resale by the enterprise.
19    (2) Personal property purchased by a not-for-profit
20Illinois county fair association for use in conducting,
21operating, or promoting the county fair.
22    (3) Personal property purchased by any not-for-profit arts
23or cultural organization that establishes, by proof required
24by the Department by rule, that it has received an exemption

 

 

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1under Section 501(c)(3) of the Internal Revenue Code and that
2is organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after July 1, 2001 (the
9effective date of Public Act 92-35), however, an entity
10otherwise eligible for this exemption shall not make tax-free
11purchases unless it has an active identification number issued
12by the Department.
13    (4) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (5) Until July 1, 2003 and beginning again on September 1,
182004 through August 30, 2014, graphic arts machinery and
19equipment, including repair and replacement parts, both new
20and used, and including that manufactured on special order or
21purchased for lease, certified by the purchaser to be used
22primarily for graphic arts production. Equipment includes
23chemicals or chemicals acting as catalysts but only if the
24chemicals or chemicals acting as catalysts effect a direct and
25immediate change upon a graphic arts product. Beginning on
26July 1, 2017, graphic arts machinery and equipment is included

 

 

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1in the manufacturing and assembling machinery and equipment
2exemption under Section 2 of this Act.
3    (6) Personal property sold by a teacher-sponsored student
4organization affiliated with an elementary or secondary school
5located in Illinois.
6    (7) Farm machinery and equipment, both new and used,
7including that manufactured on special order, certified by the
8purchaser to be used primarily for production agriculture or
9State or federal agricultural programs, including individual
10replacement parts for the machinery and equipment, including
11machinery and equipment purchased for lease, and including
12implements of husbandry defined in Section 1-130 of the
13Illinois Vehicle Code, farm machinery and agricultural
14chemical and fertilizer spreaders, and nurse wagons required
15to be registered under Section 3-809 of the Illinois Vehicle
16Code, but excluding other motor vehicles required to be
17registered under the Illinois Vehicle Code. Horticultural
18polyhouses or hoop houses used for propagating, growing, or
19overwintering plants shall be considered farm machinery and
20equipment under this item (7). Agricultural chemical tender
21tanks and dry boxes shall include units sold separately from a
22motor vehicle required to be licensed and units sold mounted
23on a motor vehicle required to be licensed if the selling price
24of the tender is separately stated.
25    Farm machinery and equipment shall include precision
26farming equipment that is installed or purchased to be

 

 

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1installed on farm machinery and equipment, including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals.
14    Beginning on January 1, 2024, farm machinery and equipment
15also includes electrical power generation equipment used
16primarily for production agriculture.
17    This item (7) is exempt from the provisions of Section
183-55.
19    (8) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air common carrier, certified by the carrier
21to be used for consumption, shipment, or storage in the
22conduct of its business as an air common carrier, for a flight
23destined for or returning from a location or locations outside
24the United States without regard to previous or subsequent
25domestic stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold

 

 

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1to or used by an air carrier, certified by the carrier to be
2used for consumption, shipment, or storage in the conduct of
3its business as an air common carrier, for a flight that (i) is
4engaged in foreign trade or is engaged in trade between the
5United States and any of its possessions and (ii) transports
6at least one individual or package for hire from the city of
7origination to the city of final destination on the same
8aircraft, without regard to a change in the flight number of
9that aircraft.
10    (9) Proceeds of mandatory service charges separately
11stated on customers' bills for the purchase and consumption of
12food and beverages, to the extent that the proceeds of the
13service charge are in fact turned over as tips or as a
14substitute for tips to the employees who participate directly
15in preparing, serving, hosting or cleaning up the food or
16beverage function with respect to which the service charge is
17imposed.
18    (10) Until July 1, 2003, oil field exploration, drilling,
19and production equipment, including (i) rigs and parts of
20rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
21pipe and tubular goods, including casing and drill strings,
22(iii) pumps and pump-jack units, (iv) storage tanks and flow
23lines, (v) any individual replacement part for oil field
24exploration, drilling, and production equipment, and (vi)
25machinery and equipment purchased for lease; but excluding
26motor vehicles required to be registered under the Illinois

 

 

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1Vehicle Code.
2    (11) Photoprocessing machinery and equipment, including
3repair and replacement parts, both new and used, including
4that manufactured on special order, certified by the purchaser
5to be used primarily for photoprocessing, and including
6photoprocessing machinery and equipment purchased for lease.
7    (12) Until July 1, 2028, coal and aggregate exploration,
8mining, off-highway hauling, processing, maintenance, and
9reclamation equipment, including replacement parts and
10equipment, and including equipment purchased for lease, but
11excluding motor vehicles required to be registered under the
12Illinois Vehicle Code. The changes made to this Section by
13Public Act 97-767 apply on and after July 1, 2003, but no claim
14for credit or refund is allowed on or after August 16, 2013
15(the effective date of Public Act 98-456) for such taxes paid
16during the period beginning July 1, 2003 and ending on August
1716, 2013 (the effective date of Public Act 98-456).
18    (13) Beginning January 1, 1992 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks and food that has been prepared for immediate
22consumption) and prescription and non-prescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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1resides in a licensed long-term care facility, as defined in
2the Nursing Home Care Act, or in a licensed facility as defined
3in the ID/DD Community Care Act, the MC/DD Act, or the
4Specialized Mental Health Rehabilitation Act of 2013.
5    (14) Semen used for artificial insemination of livestock
6for direct agricultural production.
7    (15) Horses, or interests in horses, registered with and
8meeting the requirements of any of the Arabian Horse Club
9Registry of America, Appaloosa Horse Club, American Quarter
10Horse Association, United States Trotting Association, or
11Jockey Club, as appropriate, used for purposes of breeding or
12racing for prizes. This item (15) is exempt from the
13provisions of Section 3-55, and the exemption provided for
14under this item (15) applies for all periods beginning May 30,
151995, but no claim for credit or refund is allowed on or after
16January 1, 2008 (the effective date of Public Act 95-88) for
17such taxes paid during the period beginning May 30, 2000 and
18ending on January 1, 2008 (the effective date of Public Act
1995-88).
20    (16) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients sold to a lessor
23who leases the equipment, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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1the Retailers' Occupation Tax Act.
2    (17) Personal property sold to a lessor who leases the
3property, under a lease of one year or longer executed or in
4effect at the time of the purchase, to a governmental body that
5has been issued an active tax exemption identification number
6by the Department under Section 1g of the Retailers'
7Occupation Tax Act.
8    (18) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is donated
11for disaster relief to be used in a State or federally declared
12disaster area in Illinois or bordering Illinois by a
13manufacturer or retailer that is registered in this State to a
14corporation, society, association, foundation, or institution
15that has been issued a sales tax exemption identification
16number by the Department that assists victims of the disaster
17who reside within the declared disaster area.
18    (19) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is used in
21the performance of infrastructure repairs in this State,
22including, but not limited to, municipal roads and streets,
23access roads, bridges, sidewalks, waste disposal systems,
24water and sewer line extensions, water distribution and
25purification facilities, storm water drainage and retention
26facilities, and sewage treatment facilities, resulting from a

 

 

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1State or federally declared disaster in Illinois or bordering
2Illinois when such repairs are initiated on facilities located
3in the declared disaster area within 6 months after the
4disaster.
5    (20) Beginning July 1, 1999, game or game birds sold at a
6"game breeding and hunting preserve area" as that term is used
7in the Wildlife Code. This paragraph is exempt from the
8provisions of Section 3-55.
9    (21) A motor vehicle, as that term is defined in Section
101-146 of the Illinois Vehicle Code, that is donated to a
11corporation, limited liability company, society, association,
12foundation, or institution that is determined by the
13Department to be organized and operated exclusively for
14educational purposes. For purposes of this exemption, "a
15corporation, limited liability company, society, association,
16foundation, or institution organized and operated exclusively
17for educational purposes" means all tax-supported public
18schools, private schools that offer systematic instruction in
19useful branches of learning by methods common to public
20schools and that compare favorably in their scope and
21intensity with the course of study presented in tax-supported
22schools, and vocational or technical schools or institutes
23organized and operated exclusively to provide a course of
24study of not less than 6 weeks duration and designed to prepare
25individuals to follow a trade or to pursue a manual,
26technical, mechanical, industrial, business, or commercial

 

 

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1occupation.
2    (22) Beginning January 1, 2000, personal property,
3including food, purchased through fundraising events for the
4benefit of a public or private elementary or secondary school,
5a group of those schools, or one or more school districts if
6the events are sponsored by an entity recognized by the school
7district that consists primarily of volunteers and includes
8parents and teachers of the school children. This paragraph
9does not apply to fundraising events (i) for the benefit of
10private home instruction or (ii) for which the fundraising
11entity purchases the personal property sold at the events from
12another individual or entity that sold the property for the
13purpose of resale by the fundraising entity and that profits
14from the sale to the fundraising entity. This paragraph is
15exempt from the provisions of Section 3-55.
16    (23) Beginning January 1, 2000 and through December 31,
172001, new or used automatic vending machines that prepare and
18serve hot food and beverages, including coffee, soup, and
19other items, and replacement parts for these machines.
20Beginning January 1, 2002 and through June 30, 2003, machines
21and parts for machines used in commercial, coin-operated
22amusement and vending business if a use or occupation tax is
23paid on the gross receipts derived from the use of the
24commercial, coin-operated amusement and vending machines. This
25paragraph is exempt from the provisions of Section 3-55.
26    (24) Beginning on August 2, 2001 (the effective date of

 

 

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1Public Act 92-227), computers and communications equipment
2utilized for any hospital purpose and equipment used in the
3diagnosis, analysis, or treatment of hospital patients sold to
4a lessor who leases the equipment, under a lease of one year or
5longer executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8the Retailers' Occupation Tax Act. This paragraph is exempt
9from the provisions of Section 3-55.
10    (25) Beginning on August 2, 2001 (the effective date of
11Public Act 92-227), personal property sold to a lessor who
12leases the property, under a lease of one year or longer
13executed or in effect at the time of the purchase, to a
14governmental body that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act. This paragraph is exempt
17from the provisions of Section 3-55.
18    (26) Beginning on January 1, 2002 and through June 30,
192016, tangible personal property purchased from an Illinois
20retailer by a taxpayer engaged in centralized purchasing
21activities in Illinois who will, upon receipt of the property
22in Illinois, temporarily store the property in Illinois (i)
23for the purpose of subsequently transporting it outside this
24State for use or consumption thereafter solely outside this
25State or (ii) for the purpose of being processed, fabricated,
26or manufactured into, attached to, or incorporated into other

 

 

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1tangible personal property to be transported outside this
2State and thereafter used or consumed solely outside this
3State. The Director of Revenue shall, pursuant to rules
4adopted in accordance with the Illinois Administrative
5Procedure Act, issue a permit to any taxpayer in good standing
6with the Department who is eligible for the exemption under
7this paragraph (26). The permit issued under this paragraph
8(26) shall authorize the holder, to the extent and in the
9manner specified in the rules adopted under this Act, to
10purchase tangible personal property from a retailer exempt
11from the taxes imposed by this Act. Taxpayers shall maintain
12all necessary books and records to substantiate the use and
13consumption of all such tangible personal property outside of
14the State of Illinois.
15    (27) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued
20under Title IV of the Environmental Protection Act. This
21paragraph is exempt from the provisions of Section 3-55.
22    (28) Tangible personal property sold to a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt
5instruments issued by the public-facilities corporation in
6connection with the development of the municipal convention
7hall. This exemption includes existing public-facilities
8corporations as provided in Section 11-65-25 of the Illinois
9Municipal Code. This paragraph is exempt from the provisions
10of Section 3-55.
11    (29) Beginning January 1, 2010 and continuing through
12December 31, 2029, materials, parts, equipment, components,
13and furnishings incorporated into or upon an aircraft as part
14of the modification, refurbishment, completion, replacement,
15repair, or maintenance of the aircraft. This exemption
16includes consumable supplies used in the modification,
17refurbishment, completion, replacement, repair, and
18maintenance of aircraft. However, until January 1, 2024, this
19exemption excludes any materials, parts, equipment,
20components, and consumable supplies used in the modification,
21replacement, repair, and maintenance of aircraft engines or
22power plants, whether such engines or power plants are
23installed or uninstalled upon any such aircraft. "Consumable
24supplies" include, but are not limited to, adhesive, tape,
25sandpaper, general purpose lubricants, cleaning solution,
26latex gloves, and protective films.

 

 

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1    Beginning January 1, 2010 and continuing through December
231, 2023, this exemption applies only to the transfer of
3qualifying tangible personal property incident to the
4modification, refurbishment, completion, replacement, repair,
5or maintenance of an aircraft by persons who (i) hold an Air
6Agency Certificate and are empowered to operate an approved
7repair station by the Federal Aviation Administration, (ii)
8have a Class IV Rating, and (iii) conduct operations in
9accordance with Part 145 of the Federal Aviation Regulations.
10The exemption does not include aircraft operated by a
11commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part
13129 of the Federal Aviation Regulations. From January 1, 2024
14through December 31, 2029, this exemption applies only to the
15use of qualifying tangible personal property by: (A) persons
16who modify, refurbish, complete, repair, replace, or maintain
17aircraft and who (i) hold an Air Agency Certificate and are
18empowered to operate an approved repair station by the Federal
19Aviation Administration, (ii) have a Class IV Rating, and
20(iii) conduct operations in accordance with Part 145 of the
21Federal Aviation Regulations; and (B) persons who engage in
22the modification, replacement, repair, and maintenance of
23aircraft engines or power plants without regard to whether or
24not those persons meet the qualifications of item (A).
25    The changes made to this paragraph (29) by Public Act
2698-534 are declarative of existing law. It is the intent of the

 

 

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1General Assembly that the exemption under this paragraph (29)
2applies continuously from January 1, 2010 through December 31,
32024; however, no claim for credit or refund is allowed for
4taxes paid as a result of the disallowance of this exemption on
5or after January 1, 2015 and prior to February 5, 2020 (the
6effective date of Public Act 101-629).
7    (30) Beginning January 1, 2017 and through December 31,
82026, menstrual pads, tampons, and menstrual cups.
9    (31) Tangible personal property transferred to a purchaser
10who is exempt from tax by operation of federal law. This
11paragraph is exempt from the provisions of Section 3-55.
12    (32) Qualified tangible personal property used in the
13construction or operation of a data center that has been
14granted a certificate of exemption by the Department of
15Commerce and Economic Opportunity, whether that tangible
16personal property is purchased by the owner, operator, or
17tenant of the data center or by a contractor or subcontractor
18of the owner, operator, or tenant. Data centers that would
19have qualified for a certificate of exemption prior to January
201, 2020 had Public Act 101-31 been in effect, may apply for and
21obtain an exemption for subsequent purchases of computer
22equipment or enabling software purchased or leased to upgrade,
23supplement, or replace computer equipment or enabling software
24purchased or leased in the original investment that would have
25qualified.
26    The Department of Commerce and Economic Opportunity shall

 

 

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1grant a certificate of exemption under this item (32) to
2qualified data centers as defined by Section 605-1025 of the
3Department of Commerce and Economic Opportunity Law of the
4Civil Administrative Code of Illinois.
5    For the purposes of this item (32):
6        "Data center" means a building or a series of
7    buildings rehabilitated or constructed to house working
8    servers in one physical location or multiple sites within
9    the State of Illinois.
10        "Qualified tangible personal property" means:
11    electrical systems and equipment; climate control and
12    chilling equipment and systems; mechanical systems and
13    equipment; monitoring and secure systems; emergency
14    generators; hardware; computers; servers; data storage
15    devices; network connectivity equipment; racks; cabinets;
16    telecommunications cabling infrastructure; raised floor
17    systems; peripheral components or systems; software;
18    mechanical, electrical, or plumbing systems; battery
19    systems; cooling systems and towers; temperature control
20    systems; other cabling; and other data center
21    infrastructure equipment and systems necessary to operate
22    qualified tangible personal property, including fixtures;
23    and component parts of any of the foregoing, including
24    installation, maintenance, repair, refurbishment, and
25    replacement of qualified tangible personal property to
26    generate, transform, transmit, distribute, or manage

 

 

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1    electricity necessary to operate qualified tangible
2    personal property; and all other tangible personal
3    property that is essential to the operations of a computer
4    data center. The term "qualified tangible personal
5    property" also includes building materials physically
6    incorporated into in to the qualifying data center. To
7    document the exemption allowed under this Section, the
8    retailer must obtain from the purchaser a copy of the
9    certificate of eligibility issued by the Department of
10    Commerce and Economic Opportunity.
11    This item (32) is exempt from the provisions of Section
123-55.
13    (33) Beginning July 1, 2022, breast pumps, breast pump
14collection and storage supplies, and breast pump kits. This
15item (33) is exempt from the provisions of Section 3-55. As
16used in this item (33):
17        "Breast pump" means an electrically controlled or
18    manually controlled pump device designed or marketed to be
19    used to express milk from a human breast during lactation,
20    including the pump device and any battery, AC adapter, or
21    other power supply unit that is used to power the pump
22    device and is packaged and sold with the pump device at the
23    time of sale.
24        "Breast pump collection and storage supplies" means
25    items of tangible personal property designed or marketed
26    to be used in conjunction with a breast pump to collect

 

 

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1    milk expressed from a human breast and to store collected
2    milk until it is ready for consumption.
3        "Breast pump collection and storage supplies"
4    includes, but is not limited to: breast shields and breast
5    shield connectors; breast pump tubes and tubing adapters;
6    breast pump valves and membranes; backflow protectors and
7    backflow protector adaptors; bottles and bottle caps
8    specific to the operation of the breast pump; and breast
9    milk storage bags.
10        "Breast pump collection and storage supplies" does not
11    include: (1) bottles and bottle caps not specific to the
12    operation of the breast pump; (2) breast pump travel bags
13    and other similar carrying accessories, including ice
14    packs, labels, and other similar products; (3) breast pump
15    cleaning supplies; (4) nursing bras, bra pads, breast
16    shells, and other similar products; and (5) creams,
17    ointments, and other similar products that relieve
18    breastfeeding-related symptoms or conditions of the
19    breasts or nipples, unless sold as part of a breast pump
20    kit that is pre-packaged by the breast pump manufacturer
21    or distributor.
22        "Breast pump kit" means a kit that: (1) contains no
23    more than a breast pump, breast pump collection and
24    storage supplies, a rechargeable battery for operating the
25    breast pump, a breastmilk cooler, bottle stands, ice
26    packs, and a breast pump carrying case; and (2) is

 

 

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1    pre-packaged as a breast pump kit by the breast pump
2    manufacturer or distributor.
3    (34) Tangible personal property sold by or on behalf of
4the State Treasurer pursuant to the Revised Uniform Unclaimed
5Property Act. This item (34) is exempt from the provisions of
6Section 3-55.
7    (35) Beginning on January 1, 2024, tangible personal
8property purchased by an active duty member of the armed
9forces of the United States who presents valid military
10identification and purchases the property using a form of
11payment where the federal government is the payor. The member
12of the armed forces must complete, at the point of sale, a form
13prescribed by the Department of Revenue documenting that the
14transaction is eligible for the exemption under this
15paragraph. Retailers must keep the form as documentation of
16the exemption in their records for a period of not less than 6
17years. "Armed forces of the United States" means the United
18States Army, Navy, Air Force, Space Force, Marine Corps, or
19Coast Guard. This paragraph is exempt from the provisions of
20Section 3-55.
21(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
22Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2375-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
24Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
25eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
26revised 12-12-23.)
 

 

 

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1    Section 55. The Retailers' Occupation Tax Act is amended
2by changing Section 2-5 as follows:
 
3    (35 ILCS 120/2-5)
4    Sec. 2-5. Exemptions. Gross receipts from proceeds from
5the sale of the following tangible personal property are
6exempt from the tax imposed by this Act:
7        (1) Farm chemicals.
8        (2) Farm machinery and equipment, both new and used,
9    including that manufactured on special order, certified by
10    the purchaser to be used primarily for production
11    agriculture or State or federal agricultural programs,
12    including individual replacement parts for the machinery
13    and equipment, including machinery and equipment purchased
14    for lease, and including implements of husbandry defined
15    in Section 1-130 of the Illinois Vehicle Code, farm
16    machinery and agricultural chemical and fertilizer
17    spreaders, and nurse wagons required to be registered
18    under Section 3-809 of the Illinois Vehicle Code, but
19    excluding other motor vehicles required to be registered
20    under the Illinois Vehicle Code. Horticultural polyhouses
21    or hoop houses used for propagating, growing, or
22    overwintering plants shall be considered farm machinery
23    and equipment under this item (2). Agricultural chemical
24    tender tanks and dry boxes shall include units sold

 

 

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1    separately from a motor vehicle required to be licensed
2    and units sold mounted on a motor vehicle required to be
3    licensed, if the selling price of the tender is separately
4    stated.
5        Farm machinery and equipment shall include precision
6    farming equipment that is installed or purchased to be
7    installed on farm machinery and equipment including, but
8    not limited to, tractors, harvesters, sprayers, planters,
9    seeders, or spreaders. Precision farming equipment
10    includes, but is not limited to, soil testing sensors,
11    computers, monitors, software, global positioning and
12    mapping systems, and other such equipment.
13        Farm machinery and equipment also includes computers,
14    sensors, software, and related equipment used primarily in
15    the computer-assisted operation of production agriculture
16    facilities, equipment, and activities such as, but not
17    limited to, the collection, monitoring, and correlation of
18    animal and crop data for the purpose of formulating animal
19    diets and agricultural chemicals.
20        Beginning on January 1, 2024, farm machinery and
21    equipment also includes electrical power generation
22    equipment used primarily for production agriculture.
23        This item (2) is exempt from the provisions of Section
24    2-70.
25        (3) Until July 1, 2003, distillation machinery and
26    equipment, sold as a unit or kit, assembled or installed

 

 

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1    by the retailer, certified by the user to be used only for
2    the production of ethyl alcohol that will be used for
3    consumption as motor fuel or as a component of motor fuel
4    for the personal use of the user, and not subject to sale
5    or resale.
6        (4) Until July 1, 2003 and beginning again September
7    1, 2004 through August 30, 2014, graphic arts machinery
8    and equipment, including repair and replacement parts,
9    both new and used, and including that manufactured on
10    special order or purchased for lease, certified by the
11    purchaser to be used primarily for graphic arts
12    production. Equipment includes chemicals or chemicals
13    acting as catalysts but only if the chemicals or chemicals
14    acting as catalysts effect a direct and immediate change
15    upon a graphic arts product. Beginning on July 1, 2017,
16    graphic arts machinery and equipment is included in the
17    manufacturing and assembling machinery and equipment
18    exemption under paragraph (14).
19        (5) A motor vehicle that is used for automobile
20    renting, as defined in the Automobile Renting Occupation
21    and Use Tax Act. This paragraph is exempt from the
22    provisions of Section 2-70.
23        (6) Personal property sold by a teacher-sponsored
24    student organization affiliated with an elementary or
25    secondary school located in Illinois.
26        (7) Until July 1, 2003, proceeds of that portion of

 

 

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1    the selling price of a passenger car the sale of which is
2    subject to the Replacement Vehicle Tax.
3        (8) Personal property sold to an Illinois county fair
4    association for use in conducting, operating, or promoting
5    the county fair.
6        (9) Personal property sold to a not-for-profit arts or
7    cultural organization that establishes, by proof required
8    by the Department by rule, that it has received an
9    exemption under Section 501(c)(3) of the Internal Revenue
10    Code and that is organized and operated primarily for the
11    presentation or support of arts or cultural programming,
12    activities, or services. These organizations include, but
13    are not limited to, music and dramatic arts organizations
14    such as symphony orchestras and theatrical groups, arts
15    and cultural service organizations, local arts councils,
16    visual arts organizations, and media arts organizations.
17    On and after July 1, 2001 (the effective date of Public Act
18    92-35), however, an entity otherwise eligible for this
19    exemption shall not make tax-free purchases unless it has
20    an active identification number issued by the Department.
21        (10) Personal property sold by a corporation, society,
22    association, foundation, institution, or organization,
23    other than a limited liability company, that is organized
24    and operated as a not-for-profit service enterprise for
25    the benefit of persons 65 years of age or older if the
26    personal property was not purchased by the enterprise for

 

 

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1    the purpose of resale by the enterprise.
2        (11) Except as otherwise provided in this Section,
3    personal property sold to a governmental body, to a
4    corporation, society, association, foundation, or
5    institution organized and operated exclusively for
6    charitable, religious, or educational purposes, or to a
7    not-for-profit corporation, society, association,
8    foundation, institution, or organization that has no
9    compensated officers or employees and that is organized
10    and operated primarily for the recreation of persons 55
11    years of age or older. A limited liability company may
12    qualify for the exemption under this paragraph only if the
13    limited liability company is organized and operated
14    exclusively for educational purposes. On and after July 1,
15    1987, however, no entity otherwise eligible for this
16    exemption shall make tax-free purchases unless it has an
17    active identification number issued by the Department.
18        (12) (Blank).
19        (12-5) On and after July 1, 2003 and through June 30,
20    2004, motor vehicles of the second division with a gross
21    vehicle weight in excess of 8,000 pounds that are subject
22    to the commercial distribution fee imposed under Section
23    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
24    2004 and through June 30, 2005, the use in this State of
25    motor vehicles of the second division: (i) with a gross
26    vehicle weight rating in excess of 8,000 pounds; (ii) that

 

 

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1    are subject to the commercial distribution fee imposed
2    under Section 3-815.1 of the Illinois Vehicle Code; and
3    (iii) that are primarily used for commercial purposes.
4    Through June 30, 2005, this exemption applies to repair
5    and replacement parts added after the initial purchase of
6    such a motor vehicle if that motor vehicle is used in a
7    manner that would qualify for the rolling stock exemption
8    otherwise provided for in this Act. For purposes of this
9    paragraph, "used for commercial purposes" means the
10    transportation of persons or property in furtherance of
11    any commercial or industrial enterprise whether for-hire
12    or not.
13        (13) Proceeds from sales to owners, lessors, or
14    shippers of tangible personal property that is utilized by
15    interstate carriers for hire for use as rolling stock
16    moving in interstate commerce and equipment operated by a
17    telecommunications provider, licensed as a common carrier
18    by the Federal Communications Commission, which is
19    permanently installed in or affixed to aircraft moving in
20    interstate commerce.
21        (14) Machinery and equipment that will be used by the
22    purchaser, or a lessee of the purchaser, primarily in the
23    process of manufacturing or assembling tangible personal
24    property for wholesale or retail sale or lease, whether
25    the sale or lease is made directly by the manufacturer or
26    by some other person, whether the materials used in the

 

 

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1    process are owned by the manufacturer or some other
2    person, or whether the sale or lease is made apart from or
3    as an incident to the seller's engaging in the service
4    occupation of producing machines, tools, dies, jigs,
5    patterns, gauges, or other similar items of no commercial
6    value on special order for a particular purchaser. The
7    exemption provided by this paragraph (14) does not include
8    machinery and equipment used in (i) the generation of
9    electricity for wholesale or retail sale; (ii) the
10    generation or treatment of natural or artificial gas for
11    wholesale or retail sale that is delivered to customers
12    through pipes, pipelines, or mains; or (iii) the treatment
13    of water for wholesale or retail sale that is delivered to
14    customers through pipes, pipelines, or mains. The
15    provisions of Public Act 98-583 are declaratory of
16    existing law as to the meaning and scope of this
17    exemption. Beginning on July 1, 2017, the exemption
18    provided by this paragraph (14) includes, but is not
19    limited to, graphic arts machinery and equipment, as
20    defined in paragraph (4) of this Section.
21        (15) Proceeds of mandatory service charges separately
22    stated on customers' bills for purchase and consumption of
23    food and beverages, to the extent that the proceeds of the
24    service charge are in fact turned over as tips or as a
25    substitute for tips to the employees who participate
26    directly in preparing, serving, hosting or cleaning up the

 

 

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1    food or beverage function with respect to which the
2    service charge is imposed.
3        (16) Tangible personal property sold to a purchaser if
4    the purchaser is exempt from use tax by operation of
5    federal law. This paragraph is exempt from the provisions
6    of Section 2-70.
7        (17) Tangible personal property sold to a common
8    carrier by rail or motor that receives the physical
9    possession of the property in Illinois and that transports
10    the property, or shares with another common carrier in the
11    transportation of the property, out of Illinois on a
12    standard uniform bill of lading showing the seller of the
13    property as the shipper or consignor of the property to a
14    destination outside Illinois, for use outside Illinois.
15        (18) Legal tender, currency, medallions, or gold or
16    silver coinage issued by the State of Illinois, the
17    government of the United States of America, or the
18    government of any foreign country, and bullion.
19        (19) Until July 1, 2003, oil field exploration,
20    drilling, and production equipment, including (i) rigs and
21    parts of rigs, rotary rigs, cable tool rigs, and workover
22    rigs, (ii) pipe and tubular goods, including casing and
23    drill strings, (iii) pumps and pump-jack units, (iv)
24    storage tanks and flow lines, (v) any individual
25    replacement part for oil field exploration, drilling, and
26    production equipment, and (vi) machinery and equipment

 

 

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1    purchased for lease; but excluding motor vehicles required
2    to be registered under the Illinois Vehicle Code.
3        (20) Photoprocessing machinery and equipment,
4    including repair and replacement parts, both new and used,
5    including that manufactured on special order, certified by
6    the purchaser to be used primarily for photoprocessing,
7    and including photoprocessing machinery and equipment
8    purchased for lease.
9        (21) Until July 1, 2028, coal and aggregate
10    exploration, mining, off-highway hauling, processing,
11    maintenance, and reclamation equipment, including
12    replacement parts and equipment, and including equipment
13    purchased for lease, but excluding motor vehicles required
14    to be registered under the Illinois Vehicle Code. The
15    changes made to this Section by Public Act 97-767 apply on
16    and after July 1, 2003, but no claim for credit or refund
17    is allowed on or after August 16, 2013 (the effective date
18    of Public Act 98-456) for such taxes paid during the
19    period beginning July 1, 2003 and ending on August 16,
20    2013 (the effective date of Public Act 98-456).
21        (22) Until June 30, 2013, fuel and petroleum products
22    sold to or used by an air carrier, certified by the carrier
23    to be used for consumption, shipment, or storage in the
24    conduct of its business as an air common carrier, for a
25    flight destined for or returning from a location or
26    locations outside the United States without regard to

 

 

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1    previous or subsequent domestic stopovers.
2        Beginning July 1, 2013, fuel and petroleum products
3    sold to or used by an air carrier, certified by the carrier
4    to be used for consumption, shipment, or storage in the
5    conduct of its business as an air common carrier, for a
6    flight that (i) is engaged in foreign trade or is engaged
7    in trade between the United States and any of its
8    possessions and (ii) transports at least one individual or
9    package for hire from the city of origination to the city
10    of final destination on the same aircraft, without regard
11    to a change in the flight number of that aircraft.
12        (23) A transaction in which the purchase order is
13    received by a florist who is located outside Illinois, but
14    who has a florist located in Illinois deliver the property
15    to the purchaser or the purchaser's donee in Illinois.
16        (24) Fuel consumed or used in the operation of ships,
17    barges, or vessels that are used primarily in or for the
18    transportation of property or the conveyance of persons
19    for hire on rivers bordering on this State if the fuel is
20    delivered by the seller to the purchaser's barge, ship, or
21    vessel while it is afloat upon that bordering river.
22        (25) Except as provided in item (25-5) of this
23    Section, a motor vehicle sold in this State to a
24    nonresident even though the motor vehicle is delivered to
25    the nonresident in this State, if the motor vehicle is not
26    to be titled in this State, and if a drive-away permit is

 

 

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1    issued to the motor vehicle as provided in Section 3-603
2    of the Illinois Vehicle Code or if the nonresident
3    purchaser has vehicle registration plates to transfer to
4    the motor vehicle upon returning to his or her home state.
5    The issuance of the drive-away permit or having the
6    out-of-state registration plates to be transferred is
7    prima facie evidence that the motor vehicle will not be
8    titled in this State.
9        (25-5) The exemption under item (25) does not apply if
10    the state in which the motor vehicle will be titled does
11    not allow a reciprocal exemption for a motor vehicle sold
12    and delivered in that state to an Illinois resident but
13    titled in Illinois. The tax collected under this Act on
14    the sale of a motor vehicle in this State to a resident of
15    another state that does not allow a reciprocal exemption
16    shall be imposed at a rate equal to the state's rate of tax
17    on taxable property in the state in which the purchaser is
18    a resident, except that the tax shall not exceed the tax
19    that would otherwise be imposed under this Act. At the
20    time of the sale, the purchaser shall execute a statement,
21    signed under penalty of perjury, of his or her intent to
22    title the vehicle in the state in which the purchaser is a
23    resident within 30 days after the sale and of the fact of
24    the payment to the State of Illinois of tax in an amount
25    equivalent to the state's rate of tax on taxable property
26    in his or her state of residence and shall submit the

 

 

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1    statement to the appropriate tax collection agency in his
2    or her state of residence. In addition, the retailer must
3    retain a signed copy of the statement in his or her
4    records. Nothing in this item shall be construed to
5    require the removal of the vehicle from this state
6    following the filing of an intent to title the vehicle in
7    the purchaser's state of residence if the purchaser titles
8    the vehicle in his or her state of residence within 30 days
9    after the date of sale. The tax collected under this Act in
10    accordance with this item (25-5) shall be proportionately
11    distributed as if the tax were collected at the 6.25%
12    general rate imposed under this Act.
13        (25-7) Beginning on July 1, 2007, no tax is imposed
14    under this Act on the sale of an aircraft, as defined in
15    Section 3 of the Illinois Aeronautics Act, if all of the
16    following conditions are met:
17            (1) the aircraft leaves this State within 15 days
18        after the later of either the issuance of the final
19        billing for the sale of the aircraft, or the
20        authorized approval for return to service, completion
21        of the maintenance record entry, and completion of the
22        test flight and ground test for inspection, as
23        required by 14 CFR 91.407;
24            (2) the aircraft is not based or registered in
25        this State after the sale of the aircraft; and
26            (3) the seller retains in his or her books and

 

 

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1        records and provides to the Department a signed and
2        dated certification from the purchaser, on a form
3        prescribed by the Department, certifying that the
4        requirements of this item (25-7) are met. The
5        certificate must also include the name and address of
6        the purchaser, the address of the location where the
7        aircraft is to be titled or registered, the address of
8        the primary physical location of the aircraft, and
9        other information that the Department may reasonably
10        require.
11        For purposes of this item (25-7):
12        "Based in this State" means hangared, stored, or
13    otherwise used, excluding post-sale customizations as
14    defined in this Section, for 10 or more days in each
15    12-month period immediately following the date of the sale
16    of the aircraft.
17        "Registered in this State" means an aircraft
18    registered with the Department of Transportation,
19    Aeronautics Division, or titled or registered with the
20    Federal Aviation Administration to an address located in
21    this State.
22        This paragraph (25-7) is exempt from the provisions of
23    Section 2-70.
24        (26) Semen used for artificial insemination of
25    livestock for direct agricultural production.
26        (27) Horses, or interests in horses, registered with

 

 

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1    and meeting the requirements of any of the Arabian Horse
2    Club Registry of America, Appaloosa Horse Club, American
3    Quarter Horse Association, United States Trotting
4    Association, or Jockey Club, as appropriate, used for
5    purposes of breeding or racing for prizes. This item (27)
6    is exempt from the provisions of Section 2-70, and the
7    exemption provided for under this item (27) applies for
8    all periods beginning May 30, 1995, but no claim for
9    credit or refund is allowed on or after January 1, 2008
10    (the effective date of Public Act 95-88) for such taxes
11    paid during the period beginning May 30, 2000 and ending
12    on January 1, 2008 (the effective date of Public Act
13    95-88).
14        (28) Computers and communications equipment utilized
15    for any hospital purpose and equipment used in the
16    diagnosis, analysis, or treatment of hospital patients
17    sold to a lessor who leases the equipment, under a lease of
18    one year or longer executed or in effect at the time of the
19    purchase, to a hospital that has been issued an active tax
20    exemption identification number by the Department under
21    Section 1g of this Act.
22        (29) Personal property sold to a lessor who leases the
23    property, under a lease of one year or longer executed or
24    in effect at the time of the purchase, to a governmental
25    body that has been issued an active tax exemption
26    identification number by the Department under Section 1g

 

 

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1    of this Act.
2        (30) Beginning with taxable years ending on or after
3    December 31, 1995 and ending with taxable years ending on
4    or before December 31, 2004, personal property that is
5    donated for disaster relief to be used in a State or
6    federally declared disaster area in Illinois or bordering
7    Illinois by a manufacturer or retailer that is registered
8    in this State to a corporation, society, association,
9    foundation, or institution that has been issued a sales
10    tax exemption identification number by the Department that
11    assists victims of the disaster who reside within the
12    declared disaster area.
13        (31) Beginning with taxable years ending on or after
14    December 31, 1995 and ending with taxable years ending on
15    or before December 31, 2004, personal property that is
16    used in the performance of infrastructure repairs in this
17    State, including, but not limited to, municipal roads and
18    streets, access roads, bridges, sidewalks, waste disposal
19    systems, water and sewer line extensions, water
20    distribution and purification facilities, storm water
21    drainage and retention facilities, and sewage treatment
22    facilities, resulting from a State or federally declared
23    disaster in Illinois or bordering Illinois when such
24    repairs are initiated on facilities located in the
25    declared disaster area within 6 months after the disaster.
26        (32) Beginning July 1, 1999, game or game birds sold

 

 

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1    at a "game breeding and hunting preserve area" as that
2    term is used in the Wildlife Code. This paragraph is
3    exempt from the provisions of Section 2-70.
4        (33) A motor vehicle, as that term is defined in
5    Section 1-146 of the Illinois Vehicle Code, that is
6    donated to a corporation, limited liability company,
7    society, association, foundation, or institution that is
8    determined by the Department to be organized and operated
9    exclusively for educational purposes. For purposes of this
10    exemption, "a corporation, limited liability company,
11    society, association, foundation, or institution organized
12    and operated exclusively for educational purposes" means
13    all tax-supported public schools, private schools that
14    offer systematic instruction in useful branches of
15    learning by methods common to public schools and that
16    compare favorably in their scope and intensity with the
17    course of study presented in tax-supported schools, and
18    vocational or technical schools or institutes organized
19    and operated exclusively to provide a course of study of
20    not less than 6 weeks duration and designed to prepare
21    individuals to follow a trade or to pursue a manual,
22    technical, mechanical, industrial, business, or commercial
23    occupation.
24        (34) Beginning January 1, 2000, personal property,
25    including food, purchased through fundraising events for
26    the benefit of a public or private elementary or secondary

 

 

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1    school, a group of those schools, or one or more school
2    districts if the events are sponsored by an entity
3    recognized by the school district that consists primarily
4    of volunteers and includes parents and teachers of the
5    school children. This paragraph does not apply to
6    fundraising events (i) for the benefit of private home
7    instruction or (ii) for which the fundraising entity
8    purchases the personal property sold at the events from
9    another individual or entity that sold the property for
10    the purpose of resale by the fundraising entity and that
11    profits from the sale to the fundraising entity. This
12    paragraph is exempt from the provisions of Section 2-70.
13        (35) Beginning January 1, 2000 and through December
14    31, 2001, new or used automatic vending machines that
15    prepare and serve hot food and beverages, including
16    coffee, soup, and other items, and replacement parts for
17    these machines. Beginning January 1, 2002 and through June
18    30, 2003, machines and parts for machines used in
19    commercial, coin-operated amusement and vending business
20    if a use or occupation tax is paid on the gross receipts
21    derived from the use of the commercial, coin-operated
22    amusement and vending machines. This paragraph is exempt
23    from the provisions of Section 2-70.
24        (35-5) Beginning August 23, 2001 and through June 30,
25    2016, food for human consumption that is to be consumed
26    off the premises where it is sold (other than alcoholic

 

 

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1    beverages, soft drinks, and food that has been prepared
2    for immediate consumption) and prescription and
3    nonprescription medicines, drugs, medical appliances, and
4    insulin, urine testing materials, syringes, and needles
5    used by diabetics, for human use, when purchased for use
6    by a person receiving medical assistance under Article V
7    of the Illinois Public Aid Code who resides in a licensed
8    long-term care facility, as defined in the Nursing Home
9    Care Act, or a licensed facility as defined in the ID/DD
10    Community Care Act, the MC/DD Act, or the Specialized
11    Mental Health Rehabilitation Act of 2013.
12        (36) Beginning August 2, 2001, computers and
13    communications equipment utilized for any hospital purpose
14    and equipment used in the diagnosis, analysis, or
15    treatment of hospital patients sold to a lessor who leases
16    the equipment, under a lease of one year or longer
17    executed or in effect at the time of the purchase, to a
18    hospital that has been issued an active tax exemption
19    identification number by the Department under Section 1g
20    of this Act. This paragraph is exempt from the provisions
21    of Section 2-70.
22        (37) Beginning August 2, 2001, personal property sold
23    to a lessor who leases the property, under a lease of one
24    year or longer executed or in effect at the time of the
25    purchase, to a governmental body that has been issued an
26    active tax exemption identification number by the

 

 

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1    Department under Section 1g of this Act. This paragraph is
2    exempt from the provisions of Section 2-70.
3        (38) Beginning on January 1, 2002 and through June 30,
4    2016, tangible personal property purchased from an
5    Illinois retailer by a taxpayer engaged in centralized
6    purchasing activities in Illinois who will, upon receipt
7    of the property in Illinois, temporarily store the
8    property in Illinois (i) for the purpose of subsequently
9    transporting it outside this State for use or consumption
10    thereafter solely outside this State or (ii) for the
11    purpose of being processed, fabricated, or manufactured
12    into, attached to, or incorporated into other tangible
13    personal property to be transported outside this State and
14    thereafter used or consumed solely outside this State. The
15    Director of Revenue shall, pursuant to rules adopted in
16    accordance with the Illinois Administrative Procedure Act,
17    issue a permit to any taxpayer in good standing with the
18    Department who is eligible for the exemption under this
19    paragraph (38). The permit issued under this paragraph
20    (38) shall authorize the holder, to the extent and in the
21    manner specified in the rules adopted under this Act, to
22    purchase tangible personal property from a retailer exempt
23    from the taxes imposed by this Act. Taxpayers shall
24    maintain all necessary books and records to substantiate
25    the use and consumption of all such tangible personal
26    property outside of the State of Illinois.

 

 

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1        (39) Beginning January 1, 2008, tangible personal
2    property used in the construction or maintenance of a
3    community water supply, as defined under Section 3.145 of
4    the Environmental Protection Act, that is operated by a
5    not-for-profit corporation that holds a valid water supply
6    permit issued under Title IV of the Environmental
7    Protection Act. This paragraph is exempt from the
8    provisions of Section 2-70.
9        (40) Beginning January 1, 2010 and continuing through
10    December 31, 2029, materials, parts, equipment,
11    components, and furnishings incorporated into or upon an
12    aircraft as part of the modification, refurbishment,
13    completion, replacement, repair, or maintenance of the
14    aircraft. This exemption includes consumable supplies used
15    in the modification, refurbishment, completion,
16    replacement, repair, and maintenance of aircraft. However,
17    until January 1, 2024, this exemption excludes any
18    materials, parts, equipment, components, and consumable
19    supplies used in the modification, replacement, repair,
20    and maintenance of aircraft engines or power plants,
21    whether such engines or power plants are installed or
22    uninstalled upon any such aircraft. "Consumable supplies"
23    include, but are not limited to, adhesive, tape,
24    sandpaper, general purpose lubricants, cleaning solution,
25    latex gloves, and protective films.
26        Beginning January 1, 2010 and continuing through

 

 

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1    December 31, 2023, this exemption applies only to the sale
2    of qualifying tangible personal property to persons who
3    modify, refurbish, complete, replace, or maintain an
4    aircraft and who (i) hold an Air Agency Certificate and
5    are empowered to operate an approved repair station by the
6    Federal Aviation Administration, (ii) have a Class IV
7    Rating, and (iii) conduct operations in accordance with
8    Part 145 of the Federal Aviation Regulations. The
9    exemption does not include aircraft operated by a
10    commercial air carrier providing scheduled passenger air
11    service pursuant to authority issued under Part 121 or
12    Part 129 of the Federal Aviation Regulations. From January
13    1, 2024 through December 31, 2029, this exemption applies
14    only to the use of qualifying tangible personal property
15    by: (A) persons who modify, refurbish, complete, repair,
16    replace, or maintain aircraft and who (i) hold an Air
17    Agency Certificate and are empowered to operate an
18    approved repair station by the Federal Aviation
19    Administration, (ii) have a Class IV Rating, and (iii)
20    conduct operations in accordance with Part 145 of the
21    Federal Aviation Regulations; and (B) persons who engage
22    in the modification, replacement, repair, and maintenance
23    of aircraft engines or power plants without regard to
24    whether or not those persons meet the qualifications of
25    item (A).
26        The changes made to this paragraph (40) by Public Act

 

 

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1    98-534 are declarative of existing law. It is the intent
2    of the General Assembly that the exemption under this
3    paragraph (40) applies continuously from January 1, 2010
4    through December 31, 2024; however, no claim for credit or
5    refund is allowed for taxes paid as a result of the
6    disallowance of this exemption on or after January 1, 2015
7    and prior to February 5, 2020 (the effective date of
8    Public Act 101-629).
9        (41) Tangible personal property sold to a
10    public-facilities corporation, as described in Section
11    11-65-10 of the Illinois Municipal Code, for purposes of
12    constructing or furnishing a municipal convention hall,
13    but only if the legal title to the municipal convention
14    hall is transferred to the municipality without any
15    further consideration by or on behalf of the municipality
16    at the time of the completion of the municipal convention
17    hall or upon the retirement or redemption of any bonds or
18    other debt instruments issued by the public-facilities
19    corporation in connection with the development of the
20    municipal convention hall. This exemption includes
21    existing public-facilities corporations as provided in
22    Section 11-65-25 of the Illinois Municipal Code. This
23    paragraph is exempt from the provisions of Section 2-70.
24        (42) Beginning January 1, 2017 and through December
25    31, 2026, menstrual pads, tampons, and menstrual cups.
26        (43) Merchandise that is subject to the Rental

 

 

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1    Purchase Agreement Occupation and Use Tax. The purchaser
2    must certify that the item is purchased to be rented
3    subject to a rental-purchase rental purchase agreement, as
4    defined in the Rental-Purchase Rental Purchase Agreement
5    Act, and provide proof of registration under the Rental
6    Purchase Agreement Occupation and Use Tax Act. This
7    paragraph is exempt from the provisions of Section 2-70.
8        (44) Qualified tangible personal property used in the
9    construction or operation of a data center that has been
10    granted a certificate of exemption by the Department of
11    Commerce and Economic Opportunity, whether that tangible
12    personal property is purchased by the owner, operator, or
13    tenant of the data center or by a contractor or
14    subcontractor of the owner, operator, or tenant. Data
15    centers that would have qualified for a certificate of
16    exemption prior to January 1, 2020 had Public Act 101-31
17    been in effect, may apply for and obtain an exemption for
18    subsequent purchases of computer equipment or enabling
19    software purchased or leased to upgrade, supplement, or
20    replace computer equipment or enabling software purchased
21    or leased in the original investment that would have
22    qualified.
23        The Department of Commerce and Economic Opportunity
24    shall grant a certificate of exemption under this item
25    (44) to qualified data centers as defined by Section
26    605-1025 of the Department of Commerce and Economic

 

 

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1    Opportunity Law of the Civil Administrative Code of
2    Illinois.
3        For the purposes of this item (44):
4            "Data center" means a building or a series of
5        buildings rehabilitated or constructed to house
6        working servers in one physical location or multiple
7        sites within the State of Illinois.
8            "Qualified tangible personal property" means:
9        electrical systems and equipment; climate control and
10        chilling equipment and systems; mechanical systems and
11        equipment; monitoring and secure systems; emergency
12        generators; hardware; computers; servers; data storage
13        devices; network connectivity equipment; racks;
14        cabinets; telecommunications cabling infrastructure;
15        raised floor systems; peripheral components or
16        systems; software; mechanical, electrical, or plumbing
17        systems; battery systems; cooling systems and towers;
18        temperature control systems; other cabling; and other
19        data center infrastructure equipment and systems
20        necessary to operate qualified tangible personal
21        property, including fixtures; and component parts of
22        any of the foregoing, including installation,
23        maintenance, repair, refurbishment, and replacement of
24        qualified tangible personal property to generate,
25        transform, transmit, distribute, or manage electricity
26        necessary to operate qualified tangible personal

 

 

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1        property; and all other tangible personal property
2        that is essential to the operations of a computer data
3        center. The term "qualified tangible personal
4        property" also includes building materials physically
5        incorporated into the qualifying data center. To
6        document the exemption allowed under this Section, the
7        retailer must obtain from the purchaser a copy of the
8        certificate of eligibility issued by the Department of
9        Commerce and Economic Opportunity.
10        This item (44) is exempt from the provisions of
11    Section 2-70.
12        (45) Beginning January 1, 2020 and through December
13    31, 2020, sales of tangible personal property made by a
14    marketplace seller over a marketplace for which tax is due
15    under this Act but for which use tax has been collected and
16    remitted to the Department by a marketplace facilitator
17    under Section 2d of the Use Tax Act are exempt from tax
18    under this Act. A marketplace seller claiming this
19    exemption shall maintain books and records demonstrating
20    that the use tax on such sales has been collected and
21    remitted by a marketplace facilitator. Marketplace sellers
22    that have properly remitted tax under this Act on such
23    sales may file a claim for credit as provided in Section 6
24    of this Act. No claim is allowed, however, for such taxes
25    for which a credit or refund has been issued to the
26    marketplace facilitator under the Use Tax Act, or for

 

 

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1    which the marketplace facilitator has filed a claim for
2    credit or refund under the Use Tax Act.
3        (46) Beginning July 1, 2022, breast pumps, breast pump
4    collection and storage supplies, and breast pump kits.
5    This item (46) is exempt from the provisions of Section
6    2-70. As used in this item (46):
7        "Breast pump" means an electrically controlled or
8    manually controlled pump device designed or marketed to be
9    used to express milk from a human breast during lactation,
10    including the pump device and any battery, AC adapter, or
11    other power supply unit that is used to power the pump
12    device and is packaged and sold with the pump device at the
13    time of sale.
14        "Breast pump collection and storage supplies" means
15    items of tangible personal property designed or marketed
16    to be used in conjunction with a breast pump to collect
17    milk expressed from a human breast and to store collected
18    milk until it is ready for consumption.
19        "Breast pump collection and storage supplies"
20    includes, but is not limited to: breast shields and breast
21    shield connectors; breast pump tubes and tubing adapters;
22    breast pump valves and membranes; backflow protectors and
23    backflow protector adaptors; bottles and bottle caps
24    specific to the operation of the breast pump; and breast
25    milk storage bags.
26        "Breast pump collection and storage supplies" does not

 

 

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1    include: (1) bottles and bottle caps not specific to the
2    operation of the breast pump; (2) breast pump travel bags
3    and other similar carrying accessories, including ice
4    packs, labels, and other similar products; (3) breast pump
5    cleaning supplies; (4) nursing bras, bra pads, breast
6    shells, and other similar products; and (5) creams,
7    ointments, and other similar products that relieve
8    breastfeeding-related symptoms or conditions of the
9    breasts or nipples, unless sold as part of a breast pump
10    kit that is pre-packaged by the breast pump manufacturer
11    or distributor.
12        "Breast pump kit" means a kit that: (1) contains no
13    more than a breast pump, breast pump collection and
14    storage supplies, a rechargeable battery for operating the
15    breast pump, a breastmilk cooler, bottle stands, ice
16    packs, and a breast pump carrying case; and (2) is
17    pre-packaged as a breast pump kit by the breast pump
18    manufacturer or distributor.
19        (47) Tangible personal property sold by or on behalf
20    of the State Treasurer pursuant to the Revised Uniform
21    Unclaimed Property Act. This item (47) is exempt from the
22    provisions of Section 2-70.
23        (48) Beginning on January 1, 2024, tangible personal
24    property purchased by an active duty member of the armed
25    forces of the United States who presents valid military
26    identification and purchases the property using a form of

 

 

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1    payment where the federal government is the payor. The
2    member of the armed forces must complete, at the point of
3    sale, a form prescribed by the Department of Revenue
4    documenting that the transaction is eligible for the
5    exemption under this paragraph. Retailers must keep the
6    form as documentation of the exemption in their records
7    for a period of not less than 6 years. "Armed forces of the
8    United States" means the United States Army, Navy, Air
9    Force, Space Force, Marine Corps, or Coast Guard. This
10    paragraph is exempt from the provisions of Section 2-70.
11(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
12102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
13Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
145-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
155-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
166-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
1712-12-23.)
 
18    Section 60. The Illinois Pension Code is amended by
19changing Sections 2-109 and 14-103.16 as follows:
 
20    (40 ILCS 5/2-109)  (from Ch. 108 1/2, par. 2-109)
21    Sec. 2-109. Military service. "Military service": Service
22in the United States Army, Navy, Air Force, Space Force,
23Marines or Coast Guard or any women's auxiliary thereof.
24(Source: P.A. 87-794.)
 

 

 

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1    (40 ILCS 5/14-103.16)  (from Ch. 108 1/2, par. 14-103.16)
2    Sec. 14-103.16. Military service. "Military service":
3Service in the United States Army, Navy, Air Force, Space
4Force, Marines or Coast Guard or any women's auxiliary thereof
5for which credit is allowed under this Article.
6(Source: P.A. 80-841.)
 
7    Section 65. The State Universities Civil Service Act is
8amended by changing Section 36g as follows:
 
9    (110 ILCS 70/36g)  (from Ch. 24 1/2, par. 38b6)
10    Sec. 36g. Appropriate preference in entrance examinations
11to qualified persons who have been members of the armed forces
12of the United States or to qualified persons who, while
13citizens of the United States, were members of the armed
14forces of allies of the United States in time of hostilities
15with a foreign country, and to certain other persons as set
16forth in this Section.
17    (a) As used in this Section:
18        (1) "Time of hostilities with a foreign country" means
19    any period of time in the past, present, or future during
20    which a declaration of war by the United States Congress
21    has been or is in effect or during which an emergency
22    condition has been or is in effect that is recognized by
23    the issuance of a Presidential proclamation or a

 

 

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1    Presidential executive order and in which the armed forces
2    expeditionary medal or other campaign service medals are
3    awarded according to Presidential executive order.
4        (2) "Armed forces of the United States" means the
5    United States Army, Navy, Air Force, Space Force, Marine
6    Corps, Coast Guard. Service in the Merchant Marine that
7    constitutes active duty under Section 401 of federal
8    Public Law 95-202 shall also be considered service in the
9    Armed Forces of the United States for purposes of this
10    Section.
11    (b) The preference granted under this Section shall be in
12the form of points added to the final grades of the persons if
13they otherwise qualify and are entitled to appear on the list
14of those eligible for appointments.
15    (c) A veteran is qualified for a preference of 10 points if
16the veteran currently holds proof of a service connected
17disability from the United States Department of Veterans
18Affairs or an allied country or if the veteran is a recipient
19of the Purple Heart.
20    (d) A veteran who has served during a time of hostilities
21with a foreign country is qualified for a preference of 5
22points if the veteran served under one or more of the following
23conditions:
24        (1) The veteran served a total of at least 6 months, or
25        (2) The veteran served for the duration of hostilities
26    regardless of the length of engagement, or

 

 

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1        (3) The veteran was discharged on the basis of
2    hardship, or
3        (4) The veteran was released from active duty because
4    of a service connected disability and was discharged under
5    honorable conditions.
6    (e) A person not eligible for a preference under
7subsection (c) or (d) is qualified for a preference of 3 points
8if the person has served in the armed forces of the United
9States, the Illinois National Guard, or any reserve component
10of the armed forces of the United States and the person: (1)
11served for at least 6 months and has been discharged under
12honorable conditions or (2) has been discharged on the ground
13of hardship or (3) was released from active duty because of a
14service connected disability. An active member of the National
15Guard or a reserve component of the armed forces of the United
16States is eligible for the preference if the member meets the
17service requirements of this subsection (e).
18    (f) The rank order of persons entitled to a preference on
19eligible lists shall be determined on the basis of their
20augmented ratings. When the Executive Director establishes
21eligible lists on the basis of category ratings such as
22"superior", "excellent", "well-qualified", and "qualified",
23the veteran eligibles in each such category shall be preferred
24for appointment before the non-veteran eligibles in the same
25category.
26    (g) Employees in positions covered by this Act who, while

 

 

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1in good standing, leave to engage in military service during a
2period of hostility shall be given credit for seniority
3purposes for time served in the armed forces.
4    (h) A surviving unremarried spouse of a veteran who
5suffered a service connected death or the spouse of a veteran
6who suffered a service connected disability that prevents the
7veteran from qualifying for civil service employment shall be
8entitled to the same preference to which the veteran would
9have been entitled under this Section.
10    (i) A preference shall also be given to the following
11individuals: 10 points for one parent of an unmarried veteran
12who suffered a service connected death or a service connected
13disability that prevents the veteran from qualifying for civil
14service employment. The first parent to receive a civil
15service appointment shall be the parent entitled to the
16preference.
17(Source: P.A. 100-615, eff. 1-1-19.)
 
18    Section 70. The Funeral Directors and Embalmers Licensing
19Code is amended by changing Sections 5-15 and 10-35 as
20follows:
 
21    (225 ILCS 41/5-15)
22    (Section scheduled to be repealed on January 1, 2028)
23    Sec. 5-15. Renewal; reinstatement; restoration. The
24expiration date and renewal period for each license issued

 

 

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1under this Article shall be set by rule. The holder of a
2license as a licensed funeral director may renew the license
3during the month preceding the expiration date of the license
4by paying the required fee. A licensed funeral director whose
5license has expired may have the license reinstated within 5
6years from the date of expiration upon payment of the required
7reinstatement fee. The reinstatement shall be effective as of
8the date of reissuance of the license.
9    Any licensed funeral director whose license has been
10expired for more than 5 years may have the license restored
11only by fulfilling the requirements of the Department's rules
12and by paying the required restoration fee. However, any
13licensed funeral director whose license has expired while he
14or she has been engaged (1) in federal service on active duty
15with the United States Army, Navy, Marine Corps, Air Force,
16Space Force, or Coast Guard, or the State Militia called into
17the service or training of the United States of America or (2)
18in training or education under the supervision of the United
19States preliminary to induction into the military service may
20have his or her license restored without paying any lapsed
21renewal fees or restoration fee or without passing any
22examination if, within 2 years after termination of the
23service, training or education other than by dishonorable
24discharge, he or she furnishes the Department with an
25affidavit to the effect that he or she has been so engaged and
26that his or her service, training or education has been so

 

 

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1terminated.
2    In addition to any other requirement for renewal of a
3license or reinstatement or restoration of an expired license,
4as a condition for the renewal, reinstatement, or restoration
5of a license as a licensed funeral director, each licensee
6shall provide evidence to the Department of completion of at
7least 12 hours of continuing education during the 24 months
8preceding the expiration date of the license, or in the case of
9reinstatement or restoration, during the 24 months preceding
10application for reinstatement or restoration. The continuing
11education sponsors shall be approved by the Board. In
12addition, any qualified continuing education course for
13funeral directors offered by a college, university, the
14Illinois Funeral Directors Association, Funeral Directors
15Services Association of Greater Chicago, Cook County
16Association of Funeral Home Owners, Inc., Illinois Selected
17Morticians Association, Inc., Illinois Cemetery and Funeral
18Home Association, National Funeral Directors Association,
19Selected Independent Funeral Homes, National Funeral Directors
20and Morticians Association, Inc., International Order of the
21Golden Rule, or an Illinois school of mortuary science shall
22be accepted toward satisfaction of the continuing education
23requirements.
24    The Department shall establish by rule a means for
25verification of completion of the continuing education
26required by this Section. This verification may be

 

 

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1accomplished through audits of records maintained by
2licensees, by requiring the filing of continued education
3certificates with the Department or a qualified organization
4selected by the Department to maintain these records, or by
5other means established by the Department.
6    Except as otherwise provided in this paragraph, a person
7who is licensed as a funeral director under this Code and who
8has engaged in the practice of funeral directing for at least
940 years shall be exempt from the continuing education
10requirements of this Section. In addition, the Department
11shall establish by rule an exemption or exception, for a
12limited period of time, for funeral directors who, by reason
13of advanced age, health or other extreme condition should
14reasonably be excused from the continuing education
15requirement upon the approval of the Secretary. Those persons,
16identified above, who cannot attend on-site classes, shall
17have the opportunity to comply by completing home study
18courses designed for them by sponsors.
19(Source: P.A. 102-881, eff. 1-1-23.)
 
20    (225 ILCS 41/10-35)
21    (Section scheduled to be repealed on January 1, 2028)
22    Sec. 10-35. Renewal; reinstatement; restoration. The
23expiration date and renewal period for each license issued
24under this Article shall be set by rule. The holder of a
25license as a licensed funeral director and embalmer or funeral

 

 

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1director and embalmer intern may renew the license during the
2month preceding the expiration date of the license by paying
3the required fee. A licensed funeral director and embalmer or
4licensed funeral director and embalmer trainee whose license
5has expired may have the license reinstated within 5 years
6from the date of expiration upon payment of the required
7reinstatement fee and fulfilling the requirements of the
8Department's rules. The reinstatement of the license is
9effective as of the date of the reissuance of the license.
10    Any licensed funeral director and embalmer whose license
11has been expired for more than 5 years may have the license
12restored only by fulfilling the requirements set forth in the
13Department's rules and by paying the required restoration fee.
14However, any licensed funeral director and embalmer or
15licensed funeral director and embalmer intern whose license
16has expired while he or she has been engaged (1) in federal
17service on active duty with the United States Army, Navy,
18Marine Corps, Air Force, Space Force, or Coast Guard, or the
19State Militia called into the service or training of the
20United States of America or (2) in training or education under
21the supervision of the United States preliminary to induction
22into the military service, may have his or her license
23restored without paying any lapsed renewal fees or restoration
24fee or without passing any examination if, within 2 years
25after termination of the service, training or education other
26than by dishonorable discharge, he or she furnishes the

 

 

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1Department with an affidavit to the effect that he or she has
2been so engaged and that his or her service, training or
3education has been so terminated.
4    No license of a funeral director and embalmer intern shall
5be renewed more than twice.
6    In addition to any other requirement for renewal of a
7license or reinstatement or restoration of an expired license,
8as a condition for the renewal, reinstatement, or restoration
9of a license as a licensed funeral director and embalmer, each
10licensee shall provide evidence to the Department of
11completion of at least 24 hours of continuing education during
12the 24 months preceding the expiration date of the license, or
13in the case of reinstatement or restoration, within the 24
14months preceding the application for reinstatement or
15restoration. The continuing education sponsors shall be
16approved by the Board. In addition, any qualified continuing
17education course for funeral directors and embalmers offered
18by a college, university, the Illinois Funeral Directors
19Association, Funeral Directors Services Association of Greater
20Chicago, Cook County Association of Funeral Home Owners, Inc.,
21Illinois Selected Morticians Associations, Inc., Illinois
22Cemetery and Funeral Home Association, National Funeral
23Directors Association, Selected Independent Funeral Homes,
24National Funeral Directors and Morticians Association, Inc.,
25International Order of the Golden Rule, or an Illinois school
26of mortuary science shall be accepted toward satisfaction of

 

 

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1the continuing education requirements.
2    The Department shall establish by rule a means for
3verification of completion of the continuing education
4required by this Section. This verification may be
5accomplished through audits of records maintained by
6licensees, by requiring the filing of continued education
7certificates with the Department or a qualified organization
8selected by the Department to maintain the records, or by
9other means established by the Department.
10    Except as otherwise provided in this paragraph, a person
11who is licensed as a funeral director and embalmer under this
12Code and who has engaged in the practice of funeral directing
13and embalming for at least 40 years shall be exempt from the
14continuing education requirements of this Section. In
15addition, the Department shall establish by rule an exemption
16or exception, for a limited period of time, for funeral
17directors and embalmers who, by reason of advanced age, health
18or other extreme condition, should reasonably be excused from
19the continuing education requirement upon the approval of the
20Secretary. Those persons, identified above, who cannot attend
21on-site classes, shall have the opportunity to comply by
22completing home study courses designed for them by sponsors.
23(Source: P.A. 103-419, eff. 8-4-23.)
 
24    Section 75. The Massage Licensing Act is amended by
25changing Section 70 as follows:
 

 

 

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1    (225 ILCS 57/70)
2    (Section scheduled to be repealed on January 1, 2027)
3    Sec. 70. Restoration of expired licenses. A massage
4therapist who has permitted his or her license to expire or who
5has had his or her license on inactive status may have his or
6her license restored by making application to the Department
7and filing proof acceptable to the Department of his or her
8fitness to have his or her license restored, including sworn
9evidence certifying to active practice in another jurisdiction
10satisfactory to the Department, and by paying the required
11restoration fee and showing proof of completion of required
12continuing education. Licensees must provide proof of
13completion of 24 hours approved continuing education to renew
14their license.
15    If the massage therapist has not maintained an active
16practice in another jurisdiction satisfactory to the
17Department, the Board shall determine, by an evaluation
18program established by rule his or her fitness to resume
19active status and may require the massage therapist to
20complete a period of evaluated clinical experience and may
21require successful completion of an examination.
22    A massage therapist whose license has been expired or
23placed on inactive status for more than 5 years may have his or
24her license restored by making application to the Department
25and filing proof acceptable to the Department of his or her

 

 

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1fitness to have his or her license restored, including sworn
2evidence certifying to active practice in another
3jurisdiction, by paying the required restoration fee, and by
4showing proof of the completion of 24 hours of continuing
5education.
6    However, any registrant whose license has expired while he
7or she has been engaged (i) in Federal Service on active duty
8with the United States Army, Navy, Marine Corps, Air Force,
9Space Force, Coast Guard, or Public Health Service or the
10State Militia called into the service or training of the
11United States of America, or (ii) in training or education
12under the supervision of the United States preliminary to
13induction into the military service, may have his or her
14license reinstated or restored without paying any lapsed
15renewal fees, if within 2 years after honorable termination of
16such service, training, or education, he or she furnishes to
17the Department with satisfactory evidence to the effect that
18he or she has been so engaged and that his or her service,
19training, or education has been so terminated.
20(Source: P.A. 97-514, eff. 8-23-11.)
 
21    Section 80. The Barber, Cosmetology, Esthetics, Hair
22Braiding, and Nail Technology Act of 1985 is amended by
23changing Section 1-7 as follows:
 
24    (225 ILCS 410/1-7)  (from Ch. 111, par. 1701-7)

 

 

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1    (Section scheduled to be repealed on January 1, 2026)
2    Sec. 1-7. Licensure required; renewal; restoration.
3    (a) It is unlawful for any person to practice, or to hold
4himself or herself out to be a cosmetologist, esthetician,
5nail technician, hair braider, or barber without a license as
6a cosmetologist, esthetician, nail technician, hair braider or
7barber issued by the Department pursuant to the provisions of
8this Act and of the Civil Administrative Code of Illinois. It
9is also unlawful for any person, firm, partnership, limited
10liability company, or corporation to own, operate, or conduct
11a cosmetology, esthetics, nail technology, hair braiding, or
12barber school without a license issued by the Department or to
13own or operate a cosmetology, esthetics, nail technology, or
14hair braiding salon, barber shop, or other business subject to
15the registration requirements of this Act without a
16certificate of registration issued by the Department. It is
17further unlawful for any person to teach in any cosmetology,
18esthetics, nail technology, hair braiding, or barber college
19or school approved by the Department or hold himself or
20herself out as a cosmetology, esthetics, hair braiding, nail
21technology, or barber teacher without a license as a teacher,
22issued by the Department or as a cosmetology clinic teacher
23without a license as a cosmetology clinic teacher issued by
24the Department.
25    (b) Notwithstanding any other provision of this Act, a
26person licensed as a cosmetologist may hold himself or herself

 

 

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1out as an esthetician and may engage in the practice of
2esthetics, as defined in this Act, without being licensed as
3an esthetician. A person licensed as a cosmetology teacher may
4teach esthetics or hold himself or herself out as an esthetics
5teacher without being licensed as an esthetics teacher. A
6person licensed as a cosmetologist may hold himself or herself
7out as a nail technician and may engage in the practice of nail
8technology, as defined in this Act, without being licensed as
9a nail technician. A person licensed as a cosmetology teacher
10may teach nail technology and hold himself or herself out as a
11nail technology teacher without being licensed as a nail
12technology teacher. A person licensed as a cosmetologist may
13hold himself or herself out as a hair braider and may engage in
14the practice of hair braiding, as defined in this Act, without
15being licensed as a hair braider. A person licensed as a
16cosmetology teacher may teach hair braiding and hold himself
17or herself out as a hair braiding teacher without being
18licensed as a hair braiding teacher.
19    (c) A person licensed as a barber teacher may hold himself
20or herself out as a barber and may practice barbering without a
21license as a barber. A person licensed as a cosmetology
22teacher may hold himself or herself out as a cosmetologist,
23esthetician, hair braider, and nail technologist and may
24practice cosmetology, esthetics, hair braiding, and nail
25technology without a license as a cosmetologist, esthetician,
26hair braider, or nail technologist. A person licensed as an

 

 

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1esthetics teacher may hold himself or herself out as an
2esthetician without being licensed as an esthetician and may
3practice esthetics. A person licensed as a nail technician
4teacher may practice nail technology and may hold himself or
5herself out as a nail technologist without being licensed as a
6nail technologist. A person licensed as a hair braiding
7teacher may practice hair braiding and may hold himself or
8herself out as a hair braider without being licensed as a hair
9braider.
10    (d) The holder of a license issued under this Act may renew
11that license during the month preceding the expiration date of
12the license by paying the required fee.
13    (e) The expiration date, renewal period, and conditions
14for renewal and restoration of each license shall be
15established by rule.
16    (f) A license issued under the provisions of this Act as a
17barber, barber teacher, cosmetologist, cosmetology teacher,
18cosmetology clinic teacher, esthetician, esthetics teacher,
19nail technician, nail technician teacher, hair braider, or
20hair braiding teacher that has expired while the holder of the
21license was engaged (1) in federal service on active duty with
22the Army, Navy, Marine Corps, Air Force, Space Force, or Coast
23Guard of the United States of America, or any Women's
24Auxiliary thereof, or the State Militia called into the
25service or training of the United States of America or (2) in
26training or education under the supervision of the United

 

 

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1States preliminary to induction into the military service, may
2be reinstated or restored without payment of any lapsed
3renewal fees, reinstatement fee, or restoration fee if within
42 years after the termination of such service, training, or
5education other than by dishonorable discharge, the holder
6furnishes the Department with an affidavit to the effect that
7he or she has been so engaged and that his or her service,
8training, or education has been so terminated.
9(Source: P.A. 98-911, eff. 1-1-15; 99-427, eff. 8-21-15.)
 
10    Section 85. The War on Terrorism Compensation Act is
11amended by changing Section 5 as follows:
 
12    (330 ILCS 32/5)
13    Sec. 5. Definitions. In this Act:
14    "Armed forces of the United States" means the United
15States Army, Navy, Air Force, Space Force, Marine Corps, or
16Coast Guard, the United States Reserve Forces, or the Illinois
17National Guard. Service in the merchant marine is not service
18in the armed forces for purposes of this Act.
19    "Department" means the Illinois Department of Veterans'
20Affairs.
21(Source: P.A. 96-76, eff. 7-24-09.)
 
22    Section 90. The Veterans Preference Act is amended by
23changing Section 1 as follows:
 

 

 

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1    (330 ILCS 55/1)  (from Ch. 126 1/2, par. 23)
2    Sec. 1. Veterans preference.
3    (a) In the employment and appointment to fill positions in
4the construction, addition to, or alteration of all public
5works undertaken or contracted for by the State, or by any
6political subdivision thereof, preference shall be given to
7persons who have been members of the armed forces of the United
8States or who, while citizens of the United States, were
9members of the armed forces of allies of the United States in
10time of hostilities with a foreign country, and have served
11under one or more of the following conditions:
12        (1) The veteran served a total of at least 6 months, or
13        (2) The veteran served for the duration of hostilities
14    regardless of the length of engagement, or
15        (3) The veteran served in the theater of operations
16    but was discharged on the basis of a hardship, or
17        (4) The veteran was released from active duty because
18    of a service connected disability and was honorably
19    discharged. But such preference shall be given only to
20    those persons who are found to possess the business
21    capacity necessary for the proper discharge of the duties
22    of such employment. No political subdivision or person
23    contracting for such public works is required to give
24    preference to veterans, not residents of such district,
25    over residents thereof, who are not veterans.

 

 

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1    For the purposes of this Section, a person who has been a
2member of the Illinois National Guard shall be given priority
3over a person who has been a member of the National Guard of
4any other state.
5    (b) As used in this Act:
6    "Time of hostilities with a foreign country" means any
7period of time in the past, present, or future during which a
8declaration of war by the United States Congress has been or is
9in effect or during which an emergency condition has been or is
10in effect that is recognized by the issuance of a Presidential
11proclamation or a Presidential executive order and in which
12the armed forces expeditionary medal or other campaign service
13medals are awarded according to Presidential executive order.
14    "Armed forces of the United States" means the United
15States Army, Navy, Air Force, Space Force, Marine Corps, or
16Coast Guard, United States Reserve Forces, or the National
17Guard of any state. Service in the Merchant Marine that
18constitutes active duty under Section 401 of federal Public
19Law 95-202 shall also be considered service in the Armed
20Forces of the United States for purposes of this Section.
21(Source: P.A. 102-498, eff. 1-1-22.)
 
22    Section 95. The Veterans Burial Places Act is amended by
23changing Section 1 as follows:
 
24    (330 ILCS 110/1)  (from Ch. 21, par. 59a)

 

 

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1    Sec. 1. For the purpose of locating the burial places of
2United States War Veterans and reporting to the United States
3Government under the provisions of the Federal Law respecting
4the erection of headstones at the graves of United States War
5Veterans and the erection of memorial markers where the
6remains of such veterans were not recovered or were buried at
7sea, the Department of Veterans' Affairs shall maintain a card
8file Roll of Honor, alphabetically arranged, of all veterans
9buried in the State or, if no remains were recovered or if such
10remains were buried at sea, of all the memorial markers for
11such veterans placed in the State and an additional record by
12counties showing the burials or memorial markers in each
13cemetery in each county. The records, so far as obtainable,
14shall contain the name of the veteran, war served in, his rank,
15organizations, dates of enlistment and discharge, date of
16death, description of grave or memorial marker, and name and
17location of cemetery. It shall also be his duty to prepare
18requisitions on the Federal Government for headstones or
19memorial markers when same are desired and to supervise their
20transportation from the railroad station to and erection at
21the grave of the veteran or at the site for the erection of a
22memorial marker if no remains were recovered or if such
23remains were buried at sea, certifying bills for same for
24payment.
25    The Department of Veterans' Affairs shall appoint such
26additional employees as may be required to maintain the

 

 

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1records of War Veterans Graves and Memorial Markers
2Registration. The appointment of such employees shall not be
3subject to the provisions of any law relating to civil service
4or job classification on a merit basis.
5    "United States War Veterans", for purposes of this Act,
6means:
7    (1) Soldiers of the Union and Confederate Armies of the
8Civil War.
9    (2) Members of the Armed Forces of the United States dying
10in the service and former members whose last service
11terminated honorably.
12    (3) Persons buried in post and national cemeteries.
13    (4) Members of a reserve component of the Armed Forces of
14the United States, and members of the Army National Guard or
15the Air National Guard, whose death occurred under honorable
16conditions while they were:
17        (a) on active duty for training, or performing
18    full-time service under Section 316, 503, 504, or 505 of
19    Title 32, United States Code;
20        (b) performing authorized travel to or from that duty
21    or service;
22        (c) on authorized inactive duty training, including
23    training performed as members of the Army National Guard
24    or the Air National Guard; or
25        (d) hospitalized or undergoing treatment, at the
26    expense of the United States, for injury or disease

 

 

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1    contracted or incurred under honorable conditions while
2    they were:
3            (i) on that duty or service;
4            (ii) performing that travel or inactive duty
5        training; or
6            (iii) undergoing that hospitalization or treatment
7        at the expenses of the United States.
8    (5) Members of the Reserve Officers Training Corps of the
9Army, Navy, Space Force, or Air Force whose death occurred
10under honorable conditions while they were:
11        (a) attending an authorized training camp or on an
12    authorized practice cruise;
13        (b) performing authorized travel to or from that camp
14    or cruise; or
15        (c) hospitalized or undergoing treatment, at the
16    expense of the United States, for injury or disease
17    contracted or incurred under honorable conditions while
18    they were:
19            (i) attending that camp or on that cruise;
20            (ii) performing that travel; or
21            (iii) undergoing that hospitalization or treatment
22        at the expense of the United States.
23(Source: P.A. 91-357, eff. 7-29-99.)
 
24    Section 100. The Criminal Code of 2012 is amended by
25changing Section 17-2 as follows:
 

 

 

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1    (720 ILCS 5/17-2)  (from Ch. 38, par. 17-2)
2    Sec. 17-2. False personation; solicitation.
3    (a) False personation; solicitation.
4        (1) A person commits a false personation when he or
5    she knowingly and falsely represents himself or herself to
6    be a member or representative of any veterans' or public
7    safety personnel organization or a representative of any
8    charitable organization, or when he or she knowingly
9    exhibits or uses in any manner any decal, badge or
10    insignia of any charitable, public safety personnel, or
11    veterans' organization when not authorized to do so by the
12    charitable, public safety personnel, or veterans'
13    organization. "Public safety personnel organization" has
14    the meaning ascribed to that term in Section 1 of the
15    Solicitation for Charity Act.
16        (2) A person commits a false personation when he or
17    she knowingly and falsely represents himself or herself to
18    be a veteran in seeking employment or public office. In
19    this paragraph, "veteran" means a person who has served in
20    the Armed Services or Reserve Forces of the United States.
21        (2.1) A person commits a false personation when he or
22    she knowingly and falsely represents himself or herself to
23    be:
24            (A) an active-duty member of the Armed Services or
25        Reserve Forces of the United States or the National

 

 

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1        Guard or a veteran of the Armed Services or Reserve
2        Forces of the United States or the National Guard; and
3            (B) obtains money, property, or another tangible
4        benefit through that false representation.
5        In this paragraph, "member of the Armed Services or
6    Reserve Forces of the United States" means a member of the
7    United States Navy, Army, Air Force, Space Force, Marine
8    Corps, or Coast Guard; and "veteran" means a person who
9    has served in the Armed Services or Reserve Forces of the
10    United States or the National Guard.
11        (2.5) A person commits a false personation when he or
12    she knowingly and falsely represents himself or herself to
13    be:
14            (A) another actual person and does an act in such
15        assumed character with intent to intimidate, threaten,
16        injure, defraud, or to obtain a benefit from another;
17        or
18            (B) a representative of an actual person or
19        organization and does an act in such false capacity
20        with intent to obtain a benefit or to injure or defraud
21        another.
22        (3) No person shall knowingly use the words "Police",
23    "Police Department", "Patrolman", "Sergeant",
24    "Lieutenant", "Peace Officer", "Sheriff's Police",
25    "Sheriff", "Officer", "Law Enforcement", "Trooper",
26    "Deputy", "Deputy Sheriff", "State Police", or any other

 

 

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1    words to the same effect (i) in the title of any
2    organization, magazine, or other publication without the
3    express approval of the named public safety personnel
4    organization's governing board or (ii) in combination with
5    the name of any state, state agency, public university, or
6    unit of local government without the express written
7    authorization of that state, state agency, public
8    university, or unit of local government.
9        (4) No person may knowingly claim or represent that he
10    or she is acting on behalf of any public safety personnel
11    organization when soliciting financial contributions or
12    selling or delivering or offering to sell or deliver any
13    merchandise, goods, services, memberships, or
14    advertisements unless the chief of the police department,
15    fire department, and the corporate or municipal authority
16    thereof, or the sheriff has first entered into a written
17    agreement with the person or with an organization with
18    which the person is affiliated and the agreement permits
19    the activity and specifies and states clearly and fully
20    the purpose for which the proceeds of the solicitation,
21    contribution, or sale will be used.
22        (5) No person, when soliciting financial contributions
23    or selling or delivering or offering to sell or deliver
24    any merchandise, goods, services, memberships, or
25    advertisements may claim or represent that he or she is
26    representing or acting on behalf of any nongovernmental

 

 

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1    organization by any name which includes "officer", "peace
2    officer", "police", "law enforcement", "trooper",
3    "sheriff", "deputy", "deputy sheriff", "State police", or
4    any other word or words which would reasonably be
5    understood to imply that the organization is composed of
6    law enforcement personnel unless:
7            (A) the person is actually representing or acting
8        on behalf of the nongovernmental organization;
9            (B) the nongovernmental organization is controlled
10        by and governed by a membership of and represents a
11        group or association of active duty peace officers,
12        retired peace officers, or injured peace officers; and
13            (C) before commencing the solicitation or the sale
14        or the offers to sell any merchandise, goods,
15        services, memberships, or advertisements, a written
16        contract between the soliciting or selling person and
17        the nongovernmental organization, which specifies and
18        states clearly and fully the purposes for which the
19        proceeds of the solicitation, contribution, or sale
20        will be used, has been entered into.
21        (6) No person, when soliciting financial contributions
22    or selling or delivering or offering to sell or deliver
23    any merchandise, goods, services, memberships, or
24    advertisements, may knowingly claim or represent that he
25    or she is representing or acting on behalf of any
26    nongovernmental organization by any name which includes

 

 

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1    the term "fireman", "fire fighter", "paramedic", or any
2    other word or words which would reasonably be understood
3    to imply that the organization is composed of fire fighter
4    or paramedic personnel unless:
5            (A) the person is actually representing or acting
6        on behalf of the nongovernmental organization;
7            (B) the nongovernmental organization is controlled
8        by and governed by a membership of and represents a
9        group or association of active duty, retired, or
10        injured fire fighters (for the purposes of this
11        Section, "fire fighter" has the meaning ascribed to
12        that term in Section 2 of the Illinois Fire Protection
13        Training Act) or active duty, retired, or injured
14        emergency medical technicians - ambulance, emergency
15        medical technicians - intermediate, emergency medical
16        technicians - paramedic, ambulance drivers, or other
17        medical assistance or first aid personnel; and
18            (C) before commencing the solicitation or the sale
19        or delivery or the offers to sell or deliver any
20        merchandise, goods, services, memberships, or
21        advertisements, the soliciting or selling person and
22        the nongovernmental organization have entered into a
23        written contract that specifies and states clearly and
24        fully the purposes for which the proceeds of the
25        solicitation, contribution, or sale will be used.
26        (7) No person may knowingly claim or represent that he

 

 

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1    or she is an airman, airline employee, airport employee,
2    or contractor at an airport in order to obtain the
3    uniform, identification card, license, or other
4    identification paraphernalia of an airman, airline
5    employee, airport employee, or contractor at an airport.
6        (8) No person, firm, copartnership, or corporation
7    (except corporations organized and doing business under
8    the Pawners Societies Act) shall knowingly use a name that
9    contains in it the words "Pawners' Society".
10    (b) False personation; public officials and employees. A
11person commits a false personation if he or she knowingly and
12falsely represents himself or herself to be any of the
13following:
14        (1) An attorney authorized to practice law for
15    purposes of compensation or consideration. This paragraph
16    (b)(1) does not apply to a person who unintentionally
17    fails to pay attorney registration fees established by
18    Supreme Court Rule.
19        (2) A public officer or a public employee or an
20    official or employee of the federal government.
21        (2.3) A public officer, a public employee, or an
22    official or employee of the federal government, and the
23    false representation is made in furtherance of the
24    commission of felony.
25        (2.7) A public officer or a public employee, and the
26    false representation is for the purpose of effectuating

 

 

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1    identity theft as defined in Section 16-30 of this Code.
2        (3) A peace officer.
3        (4) A peace officer while carrying a deadly weapon.
4        (5) A peace officer in attempting or committing a
5    felony.
6        (6) A peace officer in attempting or committing a
7    forcible felony.
8        (7) The parent, legal guardian, or other relation of a
9    minor child to any public official, public employee, or
10    elementary or secondary school employee or administrator.
11        (7.5) The legal guardian, including any representative
12    of a State or public guardian, of a person with a
13    disability appointed under Article XIa of the Probate Act
14    of 1975.
15        (8) A fire fighter.
16        (9) A fire fighter while carrying a deadly weapon.
17        (10) A fire fighter in attempting or committing a
18    felony.
19        (11) An emergency management worker of any
20    jurisdiction in this State.
21        (12) An emergency management worker of any
22    jurisdiction in this State in attempting or committing a
23    felony. For the purposes of this subsection (b),
24    "emergency management worker" has the meaning provided
25    under Section 2-6.6 of this Code.
26    (b-5) The trier of fact may infer that a person falsely

 

 

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1represents himself or herself to be a public officer or a
2public employee or an official or employee of the federal
3government if the person:
4        (1) wears or displays without authority any uniform,
5    badge, insignia, or facsimile thereof by which a public
6    officer or public employee or official or employee of the
7    federal government is lawfully distinguished; or
8        (2) falsely expresses by word or action that he or she
9    is a public officer or public employee or official or
10    employee of the federal government and is acting with
11    approval or authority of a public agency or department.
12    (c) Fraudulent advertisement of a corporate name.
13        (1) A company, association, or individual commits
14    fraudulent advertisement of a corporate name if he, she,
15    or it, not being incorporated, puts forth a sign or
16    advertisement and assumes, for the purpose of soliciting
17    business, a corporate name.
18        (2) Nothing contained in this subsection (c) prohibits
19    a corporation, company, association, or person from using
20    a divisional designation or trade name in conjunction with
21    its corporate name or assumed name under Section 4.05 of
22    the Business Corporation Act of 1983 or, if it is a member
23    of a partnership or joint venture, from doing partnership
24    or joint venture business under the partnership or joint
25    venture name. The name under which the joint venture or
26    partnership does business may differ from the names of the

 

 

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1    members. Business may not be conducted or transacted under
2    that joint venture or partnership name, however, unless
3    all provisions of the Assumed Business Name Act have been
4    complied with. Nothing in this subsection (c) permits a
5    foreign corporation to do business in this State without
6    complying with all Illinois laws regulating the doing of
7    business by foreign corporations. No foreign corporation
8    may conduct or transact business in this State as a member
9    of a partnership or joint venture that violates any
10    Illinois law regulating or pertaining to the doing of
11    business by foreign corporations in Illinois.
12        (3) The provisions of this subsection (c) do not apply
13    to limited partnerships formed under the Revised Uniform
14    Limited Partnership Act or under the Uniform Limited
15    Partnership Act (2001).
16    (d) False law enforcement badges.
17        (1) A person commits false law enforcement badges if
18    he or she knowingly produces, sells, or distributes a law
19    enforcement badge without the express written consent of
20    the law enforcement agency represented on the badge or, in
21    case of a reorganized or defunct law enforcement agency,
22    its successor law enforcement agency.
23        (2) It is a defense to false law enforcement badges
24    that the law enforcement badge is used or is intended to be
25    used exclusively: (i) as a memento or in a collection or
26    exhibit; (ii) for decorative purposes; or (iii) for a

 

 

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1    dramatic presentation, such as a theatrical, film, or
2    television production.
3    (e) False medals.
4        (1) A person commits a false personation if he or she
5    knowingly and falsely represents himself or herself to be
6    a recipient of, or wears on his or her person, any of the
7    following medals if that medal was not awarded to that
8    person by the United States Government, irrespective of
9    branch of service: The Congressional Medal of Honor, The
10    Distinguished Service Cross, The Navy Cross, The Air Force
11    Cross, The Silver Star, The Bronze Star, or the Purple
12    Heart.
13        (2) It is a defense to a prosecution under paragraph
14    (e)(1) that the medal is used, or is intended to be used,
15    exclusively:
16            (A) for a dramatic presentation, such as a
17        theatrical, film, or television production, or a
18        historical re-enactment; or
19            (B) for a costume worn, or intended to be worn, by
20        a person under 18 years of age.
21    (f) Sentence.
22        (1) A violation of paragraph (a)(8) is a petty offense
23    subject to a fine of not less than $5 nor more than $100,
24    and the person, firm, copartnership, or corporation
25    commits an additional petty offense for each day he, she,
26    or it continues to commit the violation. A violation of

 

 

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1    paragraph (c)(1) is a petty offense, and the company,
2    association, or person commits an additional petty offense
3    for each day he, she, or it continues to commit the
4    violation. A violation of paragraph (a)(2.1) or subsection
5    (e) is a petty offense for which the offender shall be
6    fined at least $100 and not more than $200.
7        (2) A violation of paragraph (a)(1), (a)(3), or
8    (b)(7.5) is a Class C misdemeanor.
9        (3) A violation of paragraph (a)(2), (a)(2.5), (a)(7),
10    (b)(2), or (b)(7) or subsection (d) is a Class A
11    misdemeanor. A second or subsequent violation of
12    subsection (d) is a Class 3 felony.
13        (4) A violation of paragraph (a)(4), (a)(5), (a)(6),
14    (b)(1), (b)(2.3), (b)(2.7), (b)(3), (b)(8), or (b)(11) is
15    a Class 4 felony.
16        (5) A violation of paragraph (b)(4), (b)(9), or
17    (b)(12) is a Class 3 felony.
18        (6) A violation of paragraph (b)(5) or (b)(10) is a
19    Class 2 felony.
20        (7) A violation of paragraph (b)(6) is a Class 1
21    felony.
22    (g) A violation of subsection (a)(1) through (a)(7) or
23subsection (e) of this Section may be accomplished in person
24or by any means of communication, including but not limited to
25the use of an Internet website or any form of electronic
26communication.

 

 

HB5640 Engrossed- 160 -LRB103 38934 KTG 69071 b

1(Source: P.A. 99-143, eff. 7-27-15; 99-561, eff. 7-15-16;
2100-201, eff. 8-18-17.)

 

 

HB5640 Engrossed- 161 -LRB103 38934 KTG 69071 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 70/1.45 new
4    5 ILCS 465/10
5    15 ILCS 310/10b.7from Ch. 124, par. 110b.7
6    15 ILCS 410/10b.7from Ch. 15, par. 432
7    15 ILCS 510/9b.5from Ch. 130, par. 109b.5
8    20 ILCS 415/8b.7from Ch. 127, par. 63b108b.7
9    20 ILCS 605/605-503
10    30 ILCS 500/45-57
11    35 ILCS 105/3-5
12    35 ILCS 110/3-5
13    35 ILCS 115/3-5
14    35 ILCS 120/2-5
15    40 ILCS 5/2-109from Ch. 108 1/2, par. 2-109
16    40 ILCS 5/14-103.16from Ch. 108 1/2, par. 14-103.16
17    110 ILCS 70/36gfrom Ch. 24 1/2, par. 38b6
18    225 ILCS 41/5-15
19    225 ILCS 41/10-35
20    225 ILCS 57/70
21    225 ILCS 410/1-7from Ch. 111, par. 1701-7
22    330 ILCS 32/5
23    330 ILCS 55/1from Ch. 126 1/2, par. 23
24    330 ILCS 110/1from Ch. 21, par. 59a
25    720 ILCS 5/17-2from Ch. 38, par. 17-2