HB2424sam002 96TH GENERAL ASSEMBLY

Sen. Donne E. Trotter

Filed: 5/31/2009

09600HB2424sam002 LRB096 10326 DRJ 27855 a

AMENDMENT TO HOUSE BILL 2424

AMENDMENT NO. ______. Amend House Bill 2424, AS AMENDED, with reference to page and line numbers of Senate Amendment No. 1, on page 3, line 26, by replacing "$75,000,000" with "$100,000,000"; and

on page 27, between lines 6 and 7, by inserting the following:

"Section 30-5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by changing Section 605-400 as follows:

(20 ILCS 605/605-400) (was 20 ILCS 605/46.19c)

Sec. 605-400. Office of Urban Assistance. The Department shall provide for, staff, and administer an Office of Urban Assistance, which shall plan and coordinate existing State programs designed to aid and stimulate the economic growth of depressed urban areas. Among other duties assigned by the Department, the Office shall have the following duties:

(1) To coordinate the activities of the following units and programs of the Department and all other present and future units and programs of the Department that impact depressed urban areas to the extent that they impact upon or concern urban economics:

(A) Enterprise Zone Program.

(B) Small Business Development Center Program.

(C) Programs that assist in the development of community infrastructure.

(D) Illinois House Energy Assistance Program.

(E) Illinois Home Weatherization Assistance Program.

(F) Programs financed with Community Services Block Grant funds.

(G) Industrial Training Program.

(H) Technology Transfer and Innovation Program.

(I) Rental Rehabilitation Program.

(J) Displaced Homemaker Program.

(K) Programs under the federal Job Training Partnership Act.

The Office shall convene quarterly meetings of representatives who are designated by the Department to represent the units and programs listed in items (A) through (K).

(2) To gather information concerning any State or federal program that is designed to revitalize or assist depressed urban areas in the State and to provide this information to public and private entities upon request.

(3) To promote and assist in developing urban inner city industrial parks.

(4) To promote economic parity and the autonomy of citizens of this State through promoting and assisting the development of urban inner city small business development centers, urban youth unemployment projects, small business incubators, family resource centers, urban developments banks, self managed urban businesses, and plans for urban infrastructure projects over the next 25 years.

(5) To recommend to the General Assembly and the Governor economic policies for urban areas and planning models that will result in the reconstruction of the economy of urban areas, especially those urban areas where economically and socially disadvantaged people live.

(6) To make recommendations to the General Assembly and the Governor on the establishment of urban economic policy in the areas of (i) housing, (ii) scientific research, (iii) urban youth unemployment, (iv) business incubators and family resource centers in urban inner cities, and (v) alternative energy resource development, and the need thereof, in urban areas as part of the department's 5-year plan for economic development.

(7) To make any rules and regulations necessary to carry out its responsibilities under the Civil Administrative Code of Illinois.

(8) To encourage new industrial enterprises to locate in urban areas (i) through educational promotions that point out the opportunities of any such area as a commercial and industrial field of opportunity and (ii) by the solicitation of industrial enterprises; and to do other acts that, in the judgment of the Office, are necessary and proper in fostering and promoting the industrial development and economic welfare of any urban area. The Office, however, shall have no power to require reports from or to regulate any business.

(9) To accept grants, loans, or appropriations from the federal government or the State, or any agency or instrumentality thereof, to be used for the operating expenses of the Office or for any purposes of the Office, including the making of direct loans or grants of those funds for public, private, experimental, or cooperative housing, scientific research, urban inner city industrial parks, urban youth employment projects, business incubators, urban infrastructure development, alternative energy resource development, food deserts and community food plots, community facilities needed in urban areas, and any other purpose related to the revitalization of urban areas.

(Source: P.A. 91-239, eff. 1-1-00.)"; and

on page 197, between lines 13 and 14, by inserting the following:

"Article 62.

Section 62-1. Short title. This Article may be cited as the Food Desert Mitigation Act. References in this Article to "this Act" mean this Article.

Section 62-3. Purpose. The General Assembly finds that there are large geographic areas of the State, particularly low to moderate income, where citizens have little or no access to grocery stores and other sources of food needed to maintain a healthy diet. Such inaccessibility has been linked to deleterious effects on individuals in those areas in the form of adverse health effects and shortened life expectancy. Communities can also be affected in the form of depressed economic activity and land values. Due to a number of circumstances, operators of grocery stores face substantial challenges in their efforts to develop new stores or maintain existing stores in such areas. To stem these deleterious effects, the State must promote investment, through tax credits and exemptions, in new and existing stores in order to mitigate the number and breadth of areas. Such action will have direct and long lasting benefits. Most importantly, such action will reduce the challenges that people face in accessing quality food which in turn promotes greater health for the citizens of Illinois. Investment in new and existing grocery stores also means stimulation of community revitalization, creation of new short and long term job opportunities, enhancement of the real estate tax base and the generation of new and additional revenue streams for State and local governments. In addition, grocery stores often serve as retail anchors which can lead to new and diverse retail opportunities across Illinois.

Section 62-5. Definitions. As used in this Act:

"Affiliate" means a person or business entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with an Eligible Applicant.

"Agreement" means an Agreement between an Eligible Applicant and the Department under the provisions of Section 62-50 of this Act and relating to a single Existing Full Service Grocery Store or a Proposed Full Service Grocery Store.

"Below Average Food Service Density" means that there is not a full service grocery store with at least 20,000 or more square feet of sales area and that sells Fresh Foods within 2 miles of the site that is the subject of an application filed pursuant to Section 62-20. Distances shall be measured based on the shortest reasonable pedestrian route and not in a straight line measurement.

"Credit" means a credit against taxes imposed on an Eligible Applicant, an Affiliate, or his or her successors for a taxable year pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act in an amount as set forth in Section 62-15 of this Act.

"Department" means the Department of Commerce and Economic Opportunity or successor agency thereto.

"Director" means the Director of Commerce and Economic Opportunity.

"Electric Tax Exemption" means a full exemption from taxes imposed on or charged to the operator of an Existing Full Service Grocery Store or its Affiliate pursuant to (a) Section 2-4 of the Electricity Excise Tax Law; (b) Section 2-202 of the Public Utilities Act; and (c) Section 2a.1 of the Public Utilities Revenue Act.

"Eligible Applicant" means a Taxpayer that (a) operates an Existing Full Service Grocery Store and proposes to invest in the rehabilitation or expansion, or both, of such Existing Full Service Grocery Store or (b) proposes to develop and operate a Proposed Full Service Grocery Store.

"Existing Full Service Grocery Store" means a fully operational for profit or not for profit retail establishment with one or more affiliated business units operating at a single location (a) that regularly sells Fresh Foods; (b) that derives at least (1) 55% of its annual revenues from the sale of food products and (2) 15% of its annual revenues from the sale of Fresh Foods; and (c) which is located in an Underserved Area.

"Food Desert" means a large geographic area (a) designated as such by municipal ordinance or resolution and (b) where residents have little or no access, due to physical or geographic barriers, to foods needed to maintain a healthy lifestyle.

"Fresh Foods" means (a) meat, seafood, and produce offered for sale in an unfrozen condition; (b) dairy; (c) and baked goods products.

"Full-time Employee" means an individual who is employed by an Eligible Applicant or its Affiliate for consideration for at least 30 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment at an Existing Full Service Grocery Store. A Full-time Employee shall not include an individual that does not dedicate at least 80% of his or her employment activities to a single Existing Full Service Grocery Store, such as, but not limited to, regional managers, district managers and other employees whose employment responsibilities are to more than one Existing Full Service Grocery Store.

"Fund" means the fund established pursuant to Section 62-85.

"Gas Tax Exemption" means a full exemption from the taxes imposed on or charged to the operator of an Existing Full Service Grocery Store or its Affiliate pursuant to Section 2 and Section 2a.1 of the Gas Revenue Tax Act.

"Low Income or Moderate Income Market Area" means a geographic area having a full service grocery store customer base with more than 50% of the residents living in one or more federal census tracts that have been designated as low income by the most recently available full or partial federal census.

"Noncompliance Date" means, in the case of an Eligible Applicant that is not complying with the requirements of the Agreement or the provisions of this Act, the day following the last date upon which the Eligible Applicant was in compliance with the requirements of the Agreement and the provisions of this Act, as determined by the Director, pursuant to Section 62-65.

"Part-time Employee" means an individual who is employed by an Eligible Applicant or its Affiliate for consideration for fewer than 30 hours each week at an Existing Full Service Grocery Store.

"Pass Through Entity" means an entity that is exempt from the tax under subsection (b) or (c) of Section 205 of the Illinois Income Tax Act.

"Payroll" means all salaries, wages and bonuses, as reflected in a Full-time Employee or Part-time Employee's Internal Revenue Service Form W-2, paid in a taxable year by an Eligible Applicant or its Affiliate to all Full-time Employees and Part-time Employees at an Existing Full Service Grocery Store that is the subject of an Agreement with the Department; provided, however, the value of health care, retirement plan contributions and other similar benefits shall not be considered in the calculation of the term "Payroll."

"Placed into Service" shall have the same meaning as described in subsection (h) of Section 201 of the Illinois Income Tax Act.

"Project Investment" means the expenditures of an Eligible Applicant or its Affiliate for land acquisition, loan amounts borrowed, hard and soft construction costs, financing and interest costs, furniture, fixtures and equipment, job training, attorney and consultant fees, and other costs and expenses reasonably related to the rehabilitation of an Existing Full Service Grocery Store or the development of a Proposed Full Service Grocery Store. Project Investment shall also include capitalized lease amounts.

"Proposed Full Service Grocery Store" means a proposed for profit or not for profit retail establishment with one or more business units operating at a single location (a) that regularly sells Fresh Foods; (b) that is anticipated to derive at least (1) 55% of its annual revenues from the sale of food products and (2) 15% of its annual revenues from the sale of Fresh Foods; and (c) which will be located in an Underserved Area.

"Sales Tax Exemption" means a full exemption from Retailers' Occupation Tax and Use Tax for (a) building materials physically incorporated into an Existing Full Service Grocery Store or a Proposed Full Service Grocery Store and (b) personal property such as furniture, fixtures and equipment that are used in the operation of an Existing Full Service Grocery Store.

"Sunset Date" means June 14, 2014.

"Taxpayer" means an individual, corporation, partnership, or other entity that has or may have any Illinois income tax liability under the Illinois Income Tax Act.

"Tax Exemptions" means the Gas Tax Exemption, the Electric Tax Exemption and the Sales Tax Exemption that are available to an Eligible Applicant during the entire term of an Agreement.

"Underserved Area" means: (a) a Food Desert; (b) a federal census tract that has been designated as low income or moderate-income by the most recently available full or partial federal census; (c) a project site in an area that has Below Average Food Service Density; or (d) a Low Income Market Area.

Section 62-10. Powers of the Department. The Department, in addition to those powers granted under the Civil Administrative Code of Illinois, is granted and shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this Act, including, but not limited to, the power and authority to:

(a) Establish forms for applications, notifications, contracts, or any other agreements; and accept applications at any time during the year prior to the Sunset Date.

(b) Provide assistance to Eligible Applicants pursuant to the provisions of this Act, and cooperate with Eligible Applicants that are parties to Agreements to promote, foster, and support the goals and purposes of this Act.

(c) Enter into agreements and memoranda of understanding for participation of and engage in cooperation with agencies of the federal government, units of local government, universities, research foundations or institutions, regional economic development corporations, or other organizations in furtherance of the purposes of this Act.

(d) Gather information and conduct inquiries, in the manner and by the methods it deems desirable, including, without limitation, gathering information with respect to an Eligible Applicant for the purpose of making any designations or certifications necessary in the furtherance of the purposes of this Act.

(e) Establish, negotiate and effectuate any term, agreement or other document with any person, necessary or appropriate to accomplish the purposes of this Act; and to consent, subject to the provisions of any Agreement, with another party, to the modification or restructuring of any Agreement to which the Department is a party.

(f) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses from Eligible Applicants, including, without limitation, any application fees, commitment fees, program fees, financing charges, or publication fees as deemed appropriate to pay expenses necessary or incidental to the administration, staffing, or operation in connection with the Department's activities under this Act, or for the preparation, implementation, and enforcement of the terms of an Agreement, or for consultation, advisory and legal fees, and other costs.

(g) Provide for sufficient personnel to permit administration, staffing, operation, and related support required to adequately discharge its duties and responsibilities described in this Act from funds made available through charges to Eligible Applicants or from funds as may be appropriated by the General Assembly for the administration of this Act.

(h) Require Eligible Applicants, upon written request, to issue any necessary authorization to the appropriate federal, State, or local authority for the release of information concerning a project being considered under the provisions of this Act, with the information requested to include, but not be limited to, financial reports, returns, or records relating to the Eligible Applicant or the subject matter of an Agreement.

(i) Require that Eligible Applicants keep at all times proper books and records in accordance with generally accepted accounting principles, with the books, records, or other documentation related to the Agreement in the custody or control of the Eligible Applicant open for reasonable Department inspection and audits, and including, without limitation, the making of copies of the books, records, or papers, and the inspection or appraisal of any of the Eligible Applicant's or project's assets.

(j) Take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of financial assistance or participation required under this Act, including the power to sell, dispose, lease, or rent, upon terms and conditions determined by the Director to be appropriate, real or personal property that the Department may receive as a result of these actions.

Section 62-15. Credit Awards. Subject to the approval of the Department, execution of an Agreement with the Department and the conditions set forth in this Act, an Eligible Applicant shall be entitled to a Credit in the amounts set forth below beginning on: (a) for an Existing Full Service Grocery Store, the date upon which the Eligible Applicant certifies in writing to the Department that it has made a Project Investment of at least $1,000,000 and (b) with respect to a Proposed Full Service Grocery Store, the date upon which the Proposed Full Service Grocery Store is Placed into Service. In addition, where an Eligible Applicant leases a portion of an Existing Full Service Grocery store to an affiliated or non-affiliated business entity which derives more than 50% of its annual revenues from the sale of pharmaceutical products and services, the payroll, project investment and full-time employees and part-time employees of such lessee shall be attributed to the Eligible Applicant for the purposes of determining the amount of the Credit.

(a) The Department shall make Credit awards and grants of Tax Exemption under this Act to mitigate Underserved Areas and to foster economic development in Illinois.

(b) The terms and conditions of awards of Credits and grants of Tax Exemptions shall be set forth in an Agreement between the Department and an Eligible Applicant for each Existing Full Service Grocery Store or Proposed Full Service Grocery Store for which Credits and Tax Exemptions are sought. An Agreement shall permit an Eligible Applicant to receive Credits and Tax Exemptions for at least 10 years but in no event more than 20 years and the term of such Agreement shall be of a duration to permit an Eligible Applicant to fully receive the value of such Credits and Tax Exemptions.

(c) The Credit shall be claimed for the taxable years specified in the Agreement. Credits may be claimed by an Eligible Applicant or its Affiliates, which may include, but are not limited to, entities that are members of the same unitary business group as the Eligible Applicant. If Credits are not claimed by the Eligible Applicant in a taxable year, the Eligible Applicant may (1) carry forward such Credit up to a maximum of 5 taxable years from the taxable year in which the Credit accrued or (2) sell, convey or pledge such Credit to any other Taxpayer provided such sale, conveyance or pledge conforms to subsection (e) of this Section 62-15.

(d) The Credit shall be in the following amounts and in accordance with the following schedules:

(1) For a Project Investment greater than $1,000,000 but less than $4,000,000, 8% of the Payroll for year 1 of the Agreement, 4% of the Payroll for years 2 and 3 of the Agreement and 2% of the Payroll for years 4 through 10 of the Agreement;

(2) For a Project Investment greater than $4,000,000 but less than $7,000,000, 9% of the Payroll for years 1 through 3 of the Agreement, 5% of the Payroll for years 4 through 6 of the Agreement and 2% of the Payroll for years 7 through 10 of the Agreement;

(3) For a Project Investment greater than $7,000,000 but less than $10,000,000, 10% of the Payroll for years 1 through 4 of the Agreement, 6% of the Payroll for years 5 through 7 of the Agreement and 4% of the Payroll for years 8 through 10 of the Agreement; and

(4) For a Project Investment in excess of $10,000,000, 10% of the Payroll for each year of the Agreement.

(e) The Credits authorized by this Act may be pledged, transferred, sold or assigned to any other Taxpayer by filing a notarized endorsement thereof with the Department of Revenue that names the beneficiary, the amount of the Credit transferred, and the value received for the credit, as well as any other information reasonably requested by the Department of Revenue.

Section 62-17. Tax Exemption Grants.

(a) Subject to the approval of the Department, execution of an Agreement with the Department, and the conditions set forth in this Act, an Eligible Applicant shall be entitled to the Tax Exemptions as follows: (1) for an Existing Full Service Grocery Store, the date upon which the Eligible Applicant certifies to the Department that it has made a Project Investment of at least $1,000,000; provided, however, the Eligible Applicant shall be entitled to the Sales Tax Exemption immediately upon full execution of the Agreement and (2) with respect to a Proposed Full Service Grocery Store, the date upon which the Proposed Full Service Grocery Store is Placed into Service; provided, however, the Eligible Applicant shall be entitled to the Sales Tax Exemption immediately upon full execution of the Agreement.

(b) The corporate authorities of a home rule municipality may by ordinance rebate to, share with or grant exemptions to an Eligible Applicant for (1) any of the taxes that a home rule municipality is authorized to impose pursuant to the Home Rule Municipal Retailers' Occupation Tax Act, the Home Rule Municipal Use Tax Act or Section 8-11-2 of the Illinois Municipal Code and (2) the municipality's share of the revenues distributed to it pursuant to Section 6z-18 of the State Finance Act.

(c) The corporate authorities of a non-home rule municipality may by ordinance rebate to, share with or grant exemptions to an Eligible Applicant for (1) the taxes that a non-home rule municipality is authorized to impose pursuant to the Non-Home Rule Municipal Retailers' Occupation Tax, the Non-Home Rule Municipal Use Tax Act or Section 8-11-2 of the Illinois Municipal Code and (2) the municipality's share of the revenues distributed to it pursuant to Section 6z-18 of the State Finance Act.

Section 62-20. Application for Credits and Tax Exemptions.

(a) Any Eligible Applicant proposing to make a Project Investment in an Existing Full Service Grocery Store or a Proposed Full Service Grocery Store that desires to enter into an Agreement with the Department shall submit a formal application to the Department on or before the Sunset Date, in which the Eligible Applicant states (1) its intent to make a Project Investment in an Existing Full Service Grocery Store or to construct and operate a Proposed Full Service Grocery Store and (2) how the Eligible Applicant meets the qualifications set forth in subsection (b). In addition, the application shall include such information as set forth in Section 15(a) of the Corporate Accountability for Tax Expenditures Act; provided that the Director shall have the authority to modify the application submittal requirements.

(b) In order to qualify for Credits and Tax Exemptions under this Act, an Eligible Applicant must demonstrate in its application that:

(1) It proposes to make a Project Investment of at least $1,000,000;

(2) The rehabilitation or development project involves an Existing Full Service Grocery Store or a Proposed Full Service Grocery Store;

(3) The Eligible Applicant has committed and available financing or equity, or both, necessary to complete the rehabilitation or development project in a timely manner; and

(4) The Eligible Applicant is in good standing with the Illinois Secretary of State's Office.

(c) Where an Eligible Applicant seeks to qualify for the benefits under this Act for investing in a full service grocery store in a Low Income Market Area, the Eligible Applicant must reasonably demonstrate to the Department that the site that is the subject of the application meets the criteria for a Low Income Market Area.

(d) Provided that an Eligible Applicant meets the criteria set forth in this Section 62-20 and other applicable conditions of the Act, the Department shall enter into an Agreement with the Eligible Applicant on terms and conditions that are reasonably acceptable to the parties and otherwise in conformity with this Act.

(e) The Department may not receive applications after the Sunset Date. The Department shall have the continuing authority to (1) review any complete application that has been transmitted to the Department on or before the Sunset Date; (2) enter into an Agreement with an Eligible Applicant that has submitted a complete application on or prior to the Sunset Date provided the Eligible Applicant meets the criteria set forth in this Section 62-20; and (3) modify and amend Agreements that were entered into pursuant to an application that was transmitted on or before the Sunset Date. Such sunset of authority shall in no way impair the terms, conditions, rights or obligations of Agreements that have been entered into pursuant to an application that was transmitted on or before the Sunset Date.

(f) Expenditures that an Eligible Applicant has made as of January 1, 2009 may be included by the Eligible Applicant and shall be accepted by the Department for the purposes of determining the amount of an Eligible Applicant's Project Investment.

Section 62-30. Limitation on amount of Credit and Tax Exemptions. The total amount of the Credits and Tax Exemptions taken by an Eligible Applicant pursuant to an Agreement shall not exceed the Project Investment in the Existing Full Service Grocery Store or Proposed Full Service Grocery Store that is the Subject of the Agreement. This Section 62-30 shall not be construed as precluding an Eligible Applicant from entering into more than one Agreement with the Department and fully realizing the benefits of the Credits and Tax Exemptions granted under each Agreement.

Section 62-50. Contents of agreements with applicants. The Department shall enter into an Agreement with an Eligible Applicant that qualifies for a Credit under this Act. The Agreement must include all of the following:

(a) A detailed description of the rehabilitation or development project, including the location of the project and the anticipated amount of the Project Investment.

(b) A specific method for determining the Payroll during a taxable year.

(c) A requirement that the Eligible Applicant shall annually report to the Department the number of Full-time Employees, the number of Part-time Employees, the amount of the Payroll paid, and any other information reasonably necessary to allow the Director to perform his or her duties under this Act.

(d) A requirement that the Eligible Applicant certify to the Director that it continues to operate an Existing Full Service Grocery Store, which certification may be made as part of the annual report referenced in subsection (c) of this Section 62-50.

(e) A requirement that the Director is authorized to verify with the appropriate State agencies the matters reported under subsections (c) and (d), and after doing so shall issue a certificate to the Eligible Applicant stating that the matters have been verified.

(f) The minimum Project Investment that the Eligible Applicant will make and an estimated time period for completing the project.

(g) A provision that, if the project no longer meets the definition of an Existing Full Service Grocery Store, the allowance of further Credit and Tax Exemptions shall be suspended until the project meets the definition.

(h) A detailed description of the items for which the costs incurred by the Eligible Applicant will be included in the limitation on the Credit and Tax Exemptions provided in Section 62-30.

(i) A recapture provision providing that (1) if the project no longer meets the definition of an Existing Full Service Grocery Store, the allowance of the Credit shall be suspended until the project meets the definition, except that the Eligible Applicant shall be permitted to utilize Credits that have accrued prior to a suspension; and (2) if the Eligible Applicant discontinues operations at the project site, the Eligible Applicant shall automatically forfeit all Credits accrued prior to the termination of operations that have not been utilized by the Eligible Applicant and the Eligible Applicant shall not be entitled to any Credits or Tax Exemptions after the date of termination of operations. Such recapture provisions shall be deemed to satisfy the requirements of the Corporate Accountability for Tax Expenditures Act. The Director may elect to waive enforcement of any contractual provision arising out of the Agreement required by this Act based on a finding that the waiver is necessary to avert an imminent and demonstrable hardship to the Eligible Applicant that may result in such Eligible Applicant's insolvency or discharge of workers. If a waiver is granted, the recipient must agree to a contractual modification, including recapture provisions, to the Agreement. The existence of any waiver granted pursuant to this subsection (i), the date of the granting of such waiver, and a brief summary of the reasons supporting the granting of such waiver shall be disclosed consistent with the provisions of Section 25 of Corporate Accountability for Tax Expenditures Act.

(j) Any other performance conditions or contract provisions as the Department determines are reasonably appropriate.

Section 62-55. Certificate of verification; submission to the Department of Revenue. An Eligible Applicant claiming a Credit under this Act shall submit to the Department of Revenue a copy of the Director's certificate of verification under this Act for the taxable year. However, failure to submit a copy of the certificate with the Taxpayer's tax return shall not invalidate a claim for a Credit. In order to receive a certificate of verification, the Eligible Applicant shall certify to the Department prior to the end of each calendar year that an Agreement is in effect (a) that the project meets the definition of an Existing Full Service Grocery Store and (b) the amount of Payroll payments that the Eligible Applicant has made during the taxable year.

Section 62-60. Pass Through Entity.

(a) The shareholders or partners of an Eligible Applicant that is a Pass Through Entity shall be entitled to the Credit allowed under an Agreement.

(b) The Credit provided under subsection (a) is in addition to any Credit to which a shareholder or partner is otherwise entitled under a separate Agreement under this Act. A Pass Through Entity and a shareholder or partner of the Pass Through Entity may not claim more than one Credit under the same Agreement.

Section 62-65. Noncompliance; notice; assessment. If the Director believes that an Eligible Applicant which has received Credits or Tax Exemptions under this Act is not complying with the requirements of the Agreement or this Act, the Director shall notify the Eligible Applicant of the alleged noncompliance and the Eligible Applicant's right to a hearing pursuant to the Illinois Administrative Procedure Act. If, after such notice and any hearing, the Director determines that a noncompliance exists, the Director shall issue to the Department of Revenue notice to that effect, stating the Noncompliance Date. The Department of Revenue shall suspend the Eligible Applicant's right to claim and accrue Credits and receive Tax Exemptions as of the date of the Department's notice until such time as (a) the Director determines that the Eligible Applicant is in compliance with the requirements of the Agreement and the provisions of this Act or (b) the Eligible Applicant obtains a favorable judicial determination that the Eligible Applicant's rights should not have been suspended. In the case of item (b), an Eligible Applicant shall be entitled to all Credits and Tax Exemptions that would have accrued during the suspension period but for the determination of noncompliance.

Section 62-70. Annual report. On or before July 1 of each year, the Illinois Business Investment Committee shall submit a report on the program under this Act to the Department and to the Governor and the General Assembly. The report shall include information on the number of Agreements that were entered into under this Act during the preceding calendar year, a description of the project that is the subject of each Agreement, an update on the status of projects under Agreements entered into before the preceding calendar year, and the sum of the Credits and Tax Exemptions awarded under this Act. A copy of the report shall be delivered to the Governor and to each member of the General Assembly.

Section 62-75. Evaluation of Tax Credit Program. On a biennial basis, the Department shall evaluate the program. The evaluation shall include an assessment of the effectiveness of the program in increasing accessibility to full service grocery stores in Underserved Areas and of the revenue impact of the program, and may include a review of the practices and experiences of other states with similar programs. The Director shall submit a report on the evaluation to the Governor and the General Assembly after June 30 and before November 1 in each odd-numbered year.

Section 62-80. Adoption of rules. The Department may adopt rules necessary to implement or administer this Act. The rules may provide for recipients of Credits and Tax Exemptions under this Act to be charged fees to cover administrative costs of the program. Fees collected shall be deposited into the Food Desert Mitigation Act Fund.

Section 62-85. The Food Desert Mitigation Fund.

(a) The Food Desert Mitigation Fund is established to be used exclusively for the purposes of this Act, including paying for the costs of administering this Act. The Fund shall be administered by the Department.

(b) The Fund consists of collected fees, appropriations from the General Assembly, and gifts and grants to the Fund.

(c) The State Treasurer shall invest the money in the Fund not currently needed to meet the obligations of the Fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited into the Fund. The moneys in the Fund at the end of a State fiscal year shall remain in the Fund to be used exclusively for the purposes of this Act. Expenditures from the Fund are subject to appropriation by the General Assembly.

Section 62-90. Program terms and conditions. Any documentary materials or data made available to or received by any agent or employee of the Department shall be deemed confidential and shall not be deemed public records to the extent that the materials or data consist of trade secrets, commercial or financial information regarding the operation of the business conducted by an Eligible Applicant, or any information regarding the competitive position of an Eligible Applicant. Where the Department shares any such materials or data with any other agency, government employee or unit of government, the Department shall take steps that are necessary to ensure such materials and data are afforded the same if not more strict treatment of confidentiality."; and

on page 224, between lines 5 and 6, by inserting the following:

"Section 80-90. Severability. The provisions of this Article 80 are severable under Section 1.31 of the Statute on Statutes.

Article 85.

Section 85-5. The Department of Revenue Law of the Civil Administrative Code of Illinois is amended by changing Section 2505-305 as follows:

(20 ILCS 2505/2505-305) (was 20 ILCS 2505/39b15.1)

Sec. 2505-305. Investigators.

(a) The Department has the power to appoint investigators to conduct all investigations, searches, seizures, arrests, and other duties imposed under the provisions of any law administered by the Department or the Illinois Gaming Board. Except as provided in subsection (c), these investigators have and may exercise all the powers of peace officers solely for the purpose of enforcing taxing measures administered by the Department or the Illinois Gaming Board.

(b) The Director must authorize to each investigator employed under this Section and to any other employee of the Department exercising the powers of a peace officer a distinct badge that, on its face, (i) clearly states that the badge is authorized by the Department and (ii) contains a unique identifying number. No other badge shall be authorized by the Department.

(c) The Department may enter into agreements with the Illinois Gaming Board providing that investigators appointed under this Section shall exercise the peace officer powers set forth in paragraph (20.6) of subsection (c) of Section 5 of the Riverboat Gambling Act. Investigators appointed under this Section who are assigned to the Illinois Gaming Board have and may exercise all the rights and powers of peace officers, provided that these powers shall be limited to offenses or violations occurring or committed on a riverboat or dock, as defined in subsections (d) and (f) of Section 4 of the Riverboat Gambling Act.

(Source: P.A. 91-239, eff. 1-1-00; 91-883, eff. 1-1-01; 92-493, eff. 1-1-02.)

Section 85-20. The Illinois Pension Code is amended by changing Sections 14-110 and 14-152.1 as follows:

(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)

Sec. 14-110. Alternative retirement annuity.

(a) Any member who has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, and any member who has withdrawn from service with not less than 25 years of eligible creditable service and has attained age 50, regardless of whether the attainment of either of the specified ages occurs while the member is still in service, shall be entitled to receive at the option of the member, in lieu of the regular or minimum retirement annuity, a retirement annuity computed as follows:

(i) for periods of service as a noncovered employee: if retirement occurs on or after January 1, 2001, 3% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 2 1/4% of final average compensation for each of the first 10 years of creditable service, 2 1/2% for each year above 10 years to and including 20 years of creditable service, and 2 3/4% for each year of creditable service above 20 years; and

(ii) for periods of eligible creditable service as a covered employee: if retirement occurs on or after January 1, 2001, 2.5% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 1.67% of final average compensation for each of the first 10 years of such service, 1.90% for each of the next 10 years of such service, 2.10% for each year of such service in excess of 20 but not exceeding 30, and 2.30% for each year in excess of 30.

Such annuity shall be subject to a maximum of 75% of final average compensation if retirement occurs before January 1, 2001 or to a maximum of 80% of final average compensation if retirement occurs on or after January 1, 2001.

These rates shall not be applicable to any service performed by a member as a covered employee which is not eligible creditable service. Service as a covered employee which is not eligible creditable service shall be subject to the rates and provisions of Section 14-108.

(b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions:

(1) State policeman;

(2) fire fighter in the fire protection service of a department;

(3) air pilot;

(4) special agent;

(5) investigator for the Secretary of State;

(6) conservation police officer;

(7) investigator for the Department of Revenue or the Illinois Gaming Board;

(8) security employee of the Department of Human Services;

(9) Central Management Services security police officer;

(10) security employee of the Department of Corrections or the Department of Juvenile Justice;

(11) dangerous drugs investigator;

(12) investigator for the Department of State Police;

(13) investigator for the Office of the Attorney General;

(14) controlled substance inspector;

(15) investigator for the Office of the State's Attorneys Appellate Prosecutor;

(16) Commerce Commission police officer;

(17) arson investigator;

(18) State highway maintenance worker.

A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that training is required of persons serving in that position. For the purposes of this Code, service during the required basic police training course shall be deemed performance of the duties of the specified position, even though the person is not a sworn peace officer at the time of the training.

(c) For the purposes of this Section:

(1) The term "state policeman" includes any title or position in the Department of State Police that is held by an individual employed under the State Police Act.

(2) The term "fire fighter in the fire protection service of a department" includes all officers in such fire protection service including fire chiefs and assistant fire chiefs.

(3) The term "air pilot" includes any employee whose official job description on file in the Department of Central Management Services, or in the department by which he is employed if that department is not covered by the Personnel Code, states that his principal duty is the operation of aircraft, and who possesses a pilot's license; however, the change in this definition made by this amendatory Act of 1983 shall not operate to exclude any noncovered employee who was an "air pilot" for the purposes of this Section on January 1, 1984.

(4) The term "special agent" means any person who by reason of employment by the Division of Narcotic Control, the Bureau of Investigation or, after July 1, 1977, the Division of Criminal Investigation, the Division of Internal Investigation, the Division of Operations, or any other Division or organizational entity in the Department of State Police is vested by law with duties to maintain public order, investigate violations of the criminal law of this State, enforce the laws of this State, make arrests and recover property. The term "special agent" includes any title or position in the Department of State Police that is held by an individual employed under the State Police Act.

(5) The term "investigator for the Secretary of State" means any person employed by the Office of the Secretary of State and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.

A person who became employed as an investigator for the Secretary of State between January 1, 1967 and December 31, 1975, and who has served as such until attainment of age 60, either continuously or with a single break in service of not more than 3 years duration, which break terminated before January 1, 1976, shall be entitled to have his retirement annuity calculated in accordance with subsection (a), notwithstanding that he has less than 20 years of credit for such service.

(6) The term "Conservation Police Officer" means any person employed by the Division of Law Enforcement of the Department of Natural Resources and vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The term "Conservation Police Officer" includes the positions of Chief Conservation Police Administrator and Assistant Conservation Police Administrator.

(7) The term "investigator for the Department of Revenue" means any person employed by the Department of Revenue and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.

The term "investigator for the Illinois Gaming Board" means any person employed as such by the Illinois Gaming Board and vested with such peace officer duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.

(8) The term "security employee of the Department of Human Services" means any person employed by the Department of Human Services who (i) is employed at the Chester Mental Health Center and has daily contact with the residents thereof, (ii) is employed within a security unit at a facility operated by the Department and has daily contact with the residents of the security unit, (iii) is employed at a facility operated by the Department that includes a security unit and is regularly scheduled to work at least 50% of his or her working hours within that security unit, or (iv) is a mental health police officer. "Mental health police officer" means any person employed by the Department of Human Services in a position pertaining to the Department's mental health and developmental disabilities functions who is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" means that portion of a facility that is devoted to the care, containment, and treatment of persons committed to the Department of Human Services as sexually violent persons, persons unfit to stand trial, or persons not guilty by reason of insanity. With respect to past employment, references to the Department of Human Services include its predecessor, the Department of Mental Health and Developmental Disabilities.

The changes made to this subdivision (c)(8) by Public Act 92-14 apply to persons who retire on or after January 1, 2001, notwithstanding Section 1-103.1.

(9) "Central Management Services security police officer" means any person employed by the Department of Central Management Services who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.

(10) For a member who first became an employee under this Article before July 1, 2005, the term "security employee of the Department of Corrections or the Department of Juvenile Justice" means any employee of the Department of Corrections or the Department of Juvenile Justice or the former Department of Personnel, and any member or employee of the Prisoner Review Board, who has daily contact with inmates or youth by working within a correctional facility or Juvenile facility operated by the Department of Juvenile Justice or who is a parole officer or an employee who has direct contact with committed persons in the performance of his or her job duties. For a member who first becomes an employee under this Article on or after July 1, 2005, the term means an employee of the Department of Corrections or the Department of Juvenile Justice who is any of the following: (i) officially headquartered at a correctional facility or Juvenile facility operated by the Department of Juvenile Justice, (ii) a parole officer, (iii) a member of the apprehension unit, (iv) a member of the intelligence unit, (v) a member of the sort team, or (vi) an investigator.

(11) The term "dangerous drugs investigator" means any person who is employed as such by the Department of Human Services.

(12) The term "investigator for the Department of State Police" means a person employed by the Department of State Police who is vested under Section 4 of the Narcotic Control Division Abolition Act with such law enforcement powers as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.

(13) "Investigator for the Office of the Attorney General" means any person who is employed as such by the Office of the Attorney General and is vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For the period before January 1, 1989, the term includes all persons who were employed as investigators by the Office of the Attorney General, without regard to social security status.

(14) "Controlled substance inspector" means any person who is employed as such by the Department of Professional Regulation and is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. The term "controlled substance inspector" includes the Program Executive of Enforcement and the Assistant Program Executive of Enforcement.

(15) The term "investigator for the Office of the State's Attorneys Appellate Prosecutor" means a person employed in that capacity on a full time basis under the authority of Section 7.06 of the State's Attorneys Appellate Prosecutor's Act.

(16) "Commerce Commission police officer" means any person employed by the Illinois Commerce Commission who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.

(17) "Arson investigator" means any person who is employed as such by the Office of the State Fire Marshal and is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. A person who was employed as an arson investigator on January 1, 1995 and is no longer in service but not yet receiving a retirement annuity may convert his or her creditable service for employment as an arson investigator into eligible creditable service by paying to the System the difference between the employee contributions actually paid for that service and the amounts that would have been contributed if the applicant were contributing at the rate applicable to persons with the same social security status earning eligible creditable service on the date of application.

(18) The term "State highway maintenance worker" means a person who is either of the following:

(i) A person employed on a full-time basis by the Illinois Department of Transportation in the position of highway maintainer, highway maintenance lead worker, highway maintenance lead/lead worker, heavy construction equipment operator, power shovel operator, or bridge mechanic; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the highways that form a part of the State highway system in serviceable condition for vehicular traffic.

(ii) A person employed on a full-time basis by the Illinois State Toll Highway Authority in the position of equipment operator/laborer H-4, equipment operator/laborer H-6, welder H-4, welder H-6, mechanical/electrical H-4, mechanical/electrical H-6, water/sewer H-4, water/sewer H-6, sign maker/hanger H-4, sign maker/hanger H-6, roadway lighting H-4, roadway lighting H-6, structural H-4, structural H-6, painter H-4, or painter H-6; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the Authority's tollways in serviceable condition for vehicular traffic.

(d) A security employee of the Department of Corrections or the Department of Juvenile Justice, and a security employee of the Department of Human Services who is not a mental health police officer, shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement:

(i) 25 years of eligible creditable service and age 55; or

(ii) beginning January 1, 1987, 25 years of eligible creditable service and age 54, or 24 years of eligible creditable service and age 55; or

(iii) beginning January 1, 1988, 25 years of eligible creditable service and age 53, or 23 years of eligible creditable service and age 55; or

(iv) beginning January 1, 1989, 25 years of eligible creditable service and age 52, or 22 years of eligible creditable service and age 55; or

(v) beginning January 1, 1990, 25 years of eligible creditable service and age 51, or 21 years of eligible creditable service and age 55; or

(vi) beginning January 1, 1991, 25 years of eligible creditable service and age 50, or 20 years of eligible creditable service and age 55.

Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section; but such service may be used only for establishing such eligibility, and not for the purpose of increasing or calculating any benefit.

(e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable service for the purposes of the retirement annuity prescribed in this Section.

(f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment.

For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment.

(g) A State policeman may elect, not later than January 1, 1990, to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

(h) Subject to the limitation in subsection (i), a State policeman or investigator for the Secretary of State may elect to establish eligible creditable service for up to 12 years of his service as a policeman under Article 5, by filing a written election with the Board on or before January 31, 1992, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 5-236, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

(i) The total amount of eligible creditable service established by any person under subsections (g), (h), (j), (k), and (l) of this Section shall not exceed 12 years.

(j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

(k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board by March 31, 1998, accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.

(l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

(m) The amendatory changes to this Section made by this amendatory Act of the 94th General Assembly apply only to: (1) security employees of the Department of Juvenile Justice employed by the Department of Corrections before the effective date of this amendatory Act of the 94th General Assembly and transferred to the Department of Juvenile Justice by this amendatory Act of the 94th General Assembly; and (2) persons employed by the Department of Juvenile Justice on or after the effective date of this amendatory Act of the 94th General Assembly who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have a bachelor's or advanced degree from an accredited college or university with a specialization in criminal justice, education, psychology, social work, or a closely related social science or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training.

(n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at the actuarially assumed rate from the date of the service to the date of payment.

(Source: P.A. 94-4, eff. 6-1-05; 94-696, eff. 6-1-06; 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09.)

(40 ILCS 5/14-152.1)

Sec. 14-152.1. Application and expiration of new benefit increases.

(a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4) this amendatory Act of the 94th General Assembly. "New benefit increase", however, does not include any benefit increase resulting from the changes made to this Article by this amendatory Act of the 96th General Assembly.

(b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.

(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues.

Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Financial and Professional Regulation. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.

(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law.

(e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including without limitation a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.

(Source: P.A. 94-4, eff. 6-1-05.)

Section 85-25. The Riverboat Gambling Act is amended by changing Section 5 as follows:

(230 ILCS 10/5) (from Ch. 120, par. 2405)

Sec. 5. Gaming Board.

(a) (1) There is hereby established within the Department of Revenue an Illinois Gaming Board which shall have the powers and duties specified in this Act, and all other powers necessary and proper to fully and effectively execute this Act for the purpose of administering, regulating, and enforcing the system of riverboat gambling established by this Act. Its jurisdiction shall extend under this Act to every person, association, corporation, partnership and trust involved in riverboat gambling operations in the State of Illinois.

(2) The Board shall consist of 5 members to be appointed by the Governor with the advice and consent of the Senate, one of whom shall be designated by the Governor to be chairman. Each member shall have a reasonable knowledge of the practice, procedure and principles of gambling operations. Each member shall either be a resident of Illinois or shall certify that he will become a resident of Illinois before taking office. At least one member shall be experienced in law enforcement and criminal investigation, at least one member shall be a certified public accountant experienced in accounting and auditing, and at least one member shall be a lawyer licensed to practice law in Illinois.

(3) The terms of office of the Board members shall be 3 years, except that the terms of office of the initial Board members appointed pursuant to this Act will commence from the effective date of this Act and run as follows: one for a term ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for a term ending July 1, 1993. Upon the expiration of the foregoing terms, the successors of such members shall serve a term for 3 years and until their successors are appointed and qualified for like terms. Vacancies in the Board shall be filled for the unexpired term in like manner as original appointments. Each member of the Board shall be eligible for reappointment at the discretion of the Governor with the advice and consent of the Senate.

(4) Each member of the Board shall receive $300 for each day the Board meets and for each day the member conducts any hearing pursuant to this Act. Each member of the Board shall also be reimbursed for all actual and necessary expenses and disbursements incurred in the execution of official duties.

(5) No person shall be appointed a member of the Board or continue to be a member of the Board who is, or whose spouse, child or parent is, a member of the board of directors of, or a person financially interested in, any gambling operation subject to the jurisdiction of this Board, or any race track, race meeting, racing association or the operations thereof subject to the jurisdiction of the Illinois Racing Board. No Board member shall hold any other public office for which he shall receive compensation other than necessary travel or other incidental expenses. No person shall be a member of the Board who is not of good moral character or who has been convicted of, or is under indictment for, a felony under the laws of Illinois or any other state, or the United States.

(6) Any member of the Board may be removed by the Governor for neglect of duty, misfeasance, malfeasance, or nonfeasance in office.

(7) Before entering upon the discharge of the duties of his office, each member of the Board shall take an oath that he will faithfully execute the duties of his office according to the laws of the State and the rules and regulations adopted therewith and shall give bond to the State of Illinois, approved by the Governor, in the sum of $25,000. Every such bond, when duly executed and approved, shall be recorded in the office of the Secretary of State. Whenever the Governor determines that the bond of any member of the Board has become or is likely to become invalid or insufficient, he shall require such member forthwith to renew his bond, which is to be approved by the Governor. Any member of the Board who fails to take oath and give bond within 30 days from the date of his appointment, or who fails to renew his bond within 30 days after it is demanded by the Governor, shall be guilty of neglect of duty and may be removed by the Governor. The cost of any bond given by any member of the Board under this Section shall be taken to be a part of the necessary expenses of the Board.

(8) Upon the request of the Board, the Department shall employ such personnel as may be necessary to carry out the functions of the Board. No person shall be employed to serve the Board who is, or whose spouse, parent or child is, an official of, or has a financial interest in or financial relation with, any operator engaged in gambling operations within this State or any organization engaged in conducting horse racing within this State. Any employee violating these prohibitions shall be subject to termination of employment.

(9) An Administrator shall perform any and all duties that the Board shall assign him. The salary of the Administrator shall be determined by the Board and approved by the Director of the Department and, in addition, he shall be reimbursed for all actual and necessary expenses incurred by him in discharge of his official duties. The Administrator shall keep records of all proceedings of the Board and shall preserve all records, books, documents and other papers belonging to the Board or entrusted to its care. The Administrator shall devote his full time to the duties of the office and shall not hold any other office or employment.

(b) The Board shall have general responsibility for the implementation of this Act. Its duties include, without limitation, the following:

(1) To decide promptly and in reasonable order all license applications. Any party aggrieved by an action of the Board denying, suspending, revoking, restricting or refusing to renew a license may request a hearing before the Board. A request for a hearing must be made to the Board in writing within 5 days after service of notice of the action of the Board. Notice of the action of the Board shall be served either by personal delivery or by certified mail, postage prepaid, to the aggrieved party. Notice served by certified mail shall be deemed complete on the business day following the date of such mailing. The Board shall conduct all requested hearings promptly and in reasonable order;

(2) To conduct all hearings pertaining to civil violations of this Act or rules and regulations promulgated hereunder;

(3) To promulgate such rules and regulations as in its judgment may be necessary to protect or enhance the credibility and integrity of gambling operations authorized by this Act and the regulatory process hereunder;

(4) To provide for the establishment and collection of all license and registration fees and taxes imposed by this Act and the rules and regulations issued pursuant hereto. All such fees and taxes shall be deposited into the State Gaming Fund;

(5) To provide for the levy and collection of penalties and fines for the violation of provisions of this Act and the rules and regulations promulgated hereunder. All such fines and penalties shall be deposited into the Education Assistance Fund, created by Public Act 86-0018, of the State of Illinois;

(6) To be present through its inspectors and agents any time gambling operations are conducted on any riverboat for the purpose of certifying the revenue thereof, receiving complaints from the public, and conducting such other investigations into the conduct of the gambling games and the maintenance of the equipment as from time to time the Board may deem necessary and proper;

(7) To review and rule upon any complaint by a licensee regarding any investigative procedures of the State which are unnecessarily disruptive of gambling operations. The need to inspect and investigate shall be presumed at all times. The disruption of a licensee's operations shall be proved by clear and convincing evidence, and establish that: (A) the procedures had no reasonable law enforcement purposes, and (B) the procedures were so disruptive as to unreasonably inhibit gambling operations;

(8) To hold at least one meeting each quarter of the fiscal year. In addition, special meetings may be called by the Chairman or any 2 Board members upon 72 hours written notice to each member. All Board meetings shall be subject to the Open Meetings Act. Three members of the Board shall constitute a quorum, and 3 votes shall be required for any final determination by the Board. The Board shall keep a complete and accurate record of all its meetings. A majority of the members of the Board shall constitute a quorum for the transaction of any business, for the performance of any duty, or for the exercise of any power which this Act requires the Board members to transact, perform or exercise en banc, except that, upon order of the Board, one of the Board members or an administrative law judge designated by the Board may conduct any hearing provided for under this Act or by Board rule and may recommend findings and decisions to the Board. The Board member or administrative law judge conducting such hearing shall have all powers and rights granted to the Board in this Act. The record made at the time of the hearing shall be reviewed by the Board, or a majority thereof, and the findings and decision of the majority of the Board shall constitute the order of the Board in such case;

(9) To maintain records which are separate and distinct from the records of any other State board or commission. Such records shall be available for public inspection and shall accurately reflect all Board proceedings;

(10) To file a written annual report with the Governor on or before March 1 each year and such additional reports as the Governor may request. The annual report shall include a statement of receipts and disbursements by the Board, actions taken by the Board, and any additional information and recommendations which the Board may deem valuable or which the Governor may request;

(11) (Blank); and

(12) To assume responsibility for the administration and enforcement of the Bingo License and Tax Act, the Charitable Games Act, and the Pull Tabs and Jar Games Act if such responsibility is delegated to it by the Director of Revenue.

(c) The Board shall have jurisdiction over and shall supervise all gambling operations governed by this Act. The Board shall have all powers necessary and proper to fully and effectively execute the provisions of this Act, including, but not limited to, the following:

(1) To investigate applicants and determine the eligibility of applicants for licenses and to select among competing applicants the applicants which best serve the interests of the citizens of Illinois.

(2) To have jurisdiction and supervision over all riverboat gambling operations in this State and all persons on riverboats where gambling operations are conducted.

(3) To promulgate rules and regulations for the purpose of administering the provisions of this Act and to prescribe rules, regulations and conditions under which all riverboat gambling in the State shall be conducted. Such rules and regulations are to provide for the prevention of practices detrimental to the public interest and for the best interests of riverboat gambling, including rules and regulations regarding the inspection of such riverboats and the review of any permits or licenses necessary to operate a riverboat under any laws or regulations applicable to riverboats, and to impose penalties for violations thereof.

(4) To enter the office, riverboats, facilities, or other places of business of a licensee, where evidence of the compliance or noncompliance with the provisions of this Act is likely to be found.

(5) To investigate alleged violations of this Act or the rules of the Board and to take appropriate disciplinary action against a licensee or a holder of an occupational license for a violation, or institute appropriate legal action for enforcement, or both.

(6) To adopt standards for the licensing of all persons under this Act, as well as for electronic or mechanical gambling games, and to establish fees for such licenses.

(7) To adopt appropriate standards for all riverboats and facilities.

(8) To require that the records, including financial or other statements of any licensee under this Act, shall be kept in such manner as prescribed by the Board and that any such licensee involved in the ownership or management of gambling operations submit to the Board an annual balance sheet and profit and loss statement, list of the stockholders or other persons having a 1% or greater beneficial interest in the gambling activities of each licensee, and any other information the Board deems necessary in order to effectively administer this Act and all rules, regulations, orders and final decisions promulgated under this Act.

(9) To conduct hearings, issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records and other pertinent documents in accordance with the Illinois Administrative Procedure Act, and to administer oaths and affirmations to the witnesses, when, in the judgment of the Board, it is necessary to administer or enforce this Act or the Board rules.

(10) To prescribe a form to be used by any licensee involved in the ownership or management of gambling operations as an application for employment for their employees.

(11) To revoke or suspend licenses, as the Board may see fit and in compliance with applicable laws of the State regarding administrative procedures, and to review applications for the renewal of licenses. The Board may suspend an owners license, without notice or hearing upon a determination that the safety or health of patrons or employees is jeopardized by continuing a riverboat's operation. The suspension may remain in effect until the Board determines that the cause for suspension has been abated. The Board may revoke the owners license upon a determination that the owner has not made satisfactory progress toward abating the hazard.

(12) To eject or exclude or authorize the ejection or exclusion of, any person from riverboat gambling facilities where such person is in violation of this Act, rules and regulations thereunder, or final orders of the Board, or where such person's conduct or reputation is such that his presence within the riverboat gambling facilities may, in the opinion of the Board, call into question the honesty and integrity of the gambling operations or interfere with orderly conduct thereof; provided that the propriety of such ejection or exclusion is subject to subsequent hearing by the Board.

(13) To require all licensees of gambling operations to utilize a cashless wagering system whereby all players' money is converted to tokens, electronic cards, or chips which shall be used only for wagering in the gambling establishment.

(14) (Blank).

(15) To suspend, revoke or restrict licenses, to require the removal of a licensee or an employee of a licensee for a violation of this Act or a Board rule or for engaging in a fraudulent practice, and to impose civil penalties of up to $5,000 against individuals and up to $10,000 or an amount equal to the daily gross receipts, whichever is larger, against licensees for each violation of any provision of the Act, any rules adopted by the Board, any order of the Board or any other action which, in the Board's discretion, is a detriment or impediment to riverboat gambling operations.

(16) To hire employees to gather information, conduct investigations and carry out any other tasks contemplated under this Act.

(17) To establish minimum levels of insurance to be maintained by licensees.

(18) To authorize a licensee to sell or serve alcoholic liquors, wine or beer as defined in the Liquor Control Act of 1934 on board a riverboat and to have exclusive authority to establish the hours for sale and consumption of alcoholic liquor on board a riverboat, notwithstanding any provision of the Liquor Control Act of 1934 or any local ordinance, and regardless of whether the riverboat makes excursions. The establishment of the hours for sale and consumption of alcoholic liquor on board a riverboat is an exclusive power and function of the State. A home rule unit may not establish the hours for sale and consumption of alcoholic liquor on board a riverboat. This amendatory Act of 1991 is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(19) After consultation with the U.S. Army Corps of Engineers, to establish binding emergency orders upon the concurrence of a majority of the members of the Board regarding the navigability of water, relative to excursions, in the event of extreme weather conditions, acts of God or other extreme circumstances.

(20) To delegate the execution of any of its powers under this Act for the purpose of administering and enforcing this Act and its rules and regulations hereunder.

(20.6) To appoint investigators to conduct investigations, searches, seizures, arrests, and other duties imposed under this Act, as deemed necessary by the Board. These investigators have and may exercise all of the rights and powers of peace officers, provided that these powers shall be limited to offenses or violations occurring or committed on a riverboat or dock, as defined in subsections (d) and (f) of Section 4, or as otherwise provided by this Act or any other law.

(20.7) To contract with the Department of State Police for the use of trained and qualified State police officers and with the Department of Revenue for the use of trained and qualified Department of Revenue investigators to conduct investigations, searches, seizures, arrests, and other duties imposed under this Act and to exercise all of the rights and powers of peace officers, provided that the powers of Department of Revenue investigators under this subdivision (20.7) shall be limited to offenses or violations occurring or committed on a riverboat or dock, as defined in subsections (d) and (f) of Section 4, or as otherwise provided by this Act or any other law. In the event the Department of State Police or the Department of Revenue is unable to fill contracted police or investigative positions, the Board may appoint investigators to fill those positions pursuant to subdivision (20.6).

(21) To take any other action as may be reasonable or appropriate to enforce this Act and rules and regulations hereunder.

(d) The Board may seek and shall receive the cooperation of the Department of State Police in conducting background investigations of applicants and in fulfilling its responsibilities under this Section. Costs incurred by the Department of State Police as a result of such cooperation shall be paid by the Board in conformance with the requirements of Section 2605-400 of the Department of State Police Law (20 ILCS 2605/2605-400).

(e) The Board must authorize to each investigator and to any other employee of the Board exercising the powers of a peace officer a distinct badge that, on its face, (i) clearly states that the badge is authorized by the Board and (ii) contains a unique identifying number. No other badge shall be authorized by the Board.

(Source: P.A. 91-40, eff. 1-1-00; 91-239, eff. 1-1-00; 91-883, eff. 1-1-01.)".