Public Act 095-0723
 
SB0836 Enrolled LRB095 05544 HLH 25634 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. If and only if Senate Bill 2052 of the 95th
General Assembly becomes law, then the Flood Prevention
District Act is amended by changing Sections 5, 10, 20, 25, 30,
35, 40, 45, and 50 as follows:
 
    (S.B. 2052eng, 95th G.A., Sec. 5)
    Sec. 5. Creation; purpose.
    (a) Madison, Monroe, and St. Clair Counties may each be
designated independently and separately as a flood prevention
district for the purpose of performing emergency levee repair
and flood prevention in order to prevent the loss of life or
property. The county board of any such county may declare an
emergency and create a flood prevention district by the
affirmative vote of the majority of the members of the county
board.
    (b) Two or more flood prevention districts may join
together through an intergovernmental agreement to provide any
services described in this Act, to construct, reconstruct,
repair, or otherwise provide any facilities described in this
Act either within or outside of any district's corporate
limits, to issue bonds, notes, or other evidences of
indebtedness, to pledge the taxes authorized to be imposed
pursuant to Section 25 of this Act to the obligations of any
other district, and to exercise any other power authorized in
this Act, pursuant to the Intergovernmental Cooperation Act.
    (c) Any district created under this Act shall be dissolved
upon the later of (i) 25 years after the date the district is
created or (ii) the payment of all obligations of the district
issued under Section 20 of this Act and the payment of any
federal reimbursement moneys to the county treasurer under
Section 30 of this Act. A district may be dissolved earlier by
its board of commissioners if all federal reimbursement moneys
have been paid to the county treasurer and all obligations of
the district have been paid, including its obligations related
to bonds issued under Section 20 of this Act and any
obligations incurred pursuant to an intergovernmental
agreement.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 10)
    Sec. 10. Commissioners. The affairs of the district shall
be managed by a board of 3 commissioners who shall be appointed
by the chairman of the county board of the county in which the
district is situated. All initial appointments under this
Section must be made within 90 days after the district is
organized. Of the initial appointments, one commissioner shall
serve for a one-year term, one commissioner shall serve for a
2-year term, and one commissioner shall serve for a 3-year
term, as determined by lot. Their successors shall be appointed
for 3-year terms. A commissioner shall continue to serve as
commissioner until his or her successor is duly appointed. No
commissioner may serve for more than 20 years. All appointments
must be made so that no more than 2 commissioners are from the
same political party at the time of the appointment. With
respect to appointments representing the minority party in the
county, the minority party members of the county board may
submit names for consideration to the chairman of the county
board. Each commissioner must be a legal voter in the district,
and at least one commissioner shall reside or own property that
is located within a floodplain situated in the territory of the
flood protection district. Commissioners shall serve without
compensation, but may be reimbursed for reasonable expenses
incurred in the performance of their duties.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 20)
    Sec. 20. Powers of the district. A district formed under
this Act shall have the following powers:
        (1) To sue or be sued.
        (2) To apply for and accept gifts, grants, and loans
    from any public agency or private entity.
        (3) To enter into intergovernmental agreements to
    further ensure levee repair, levee construction or
    reconstruction, and flood prevention, within or outside of
    the district's corporate limits, including agreements with
    the United States Army Corps of Engineers or any other
    agency or department of the federal government.
        (4) To undertake evaluation, planning, design,
    construction, and related activities that are determined
    to be urgently needed to stabilize, repair, restore,
    improve, or replace existing levees and other flood control
    systems located within or outside of the district's
    corporate limits.
        (5) To address underseepage problems and old and
    deteriorating pumps, gates, pipes, electrical controls,
    and other infrastructure within or outside of the
    district's corporate limits.
        (6) To conduct evaluations of levees and other flood
    control facilities that protect urban areas, including the
    performance of floodplain mapping studies.
        (7) To provide capital moneys for levee or
    river-related scientific studies, within or outside of the
    district's corporate limits, including the construction of
    facilities for such purposes.
        (8) To borrow money or receive money from the United
    States Government or any agency thereof, or from any other
    public or private source, for the purposes of the District
    and to issue indebtedness, including bonds, notes, or other
    evidences of indebtedness to evidence such borrowing, and
    to pledge and use some or all of the taxes imposed pursuant
    to Section 25 of this Act for the repayment of the
    indebtedness of the District or any other flood prevention
    districts. The District shall direct the county to use
    moneys in the County Flood Prevention Occupation Tax Fund
    to pay such indebtedness.
        (9) To enter into agreements with private property
    owners.
        (10) To issue revenue bonds, notes, or other evidences
    of indebtedness payable from revenue received from a
    retailers' occupation tax imposed under Section 25 of this
    Act, and from any other revenue sources available to the
    flood prevention district. These bonds may be issued with
    maturities not exceeding 25 years from the date of the
    bonds, and in such amounts as may be necessary to provide
    sufficient funds, together with interest, for the purposes
    of the District. These bonds shall bear interest at a rate
    of not more than the maximum rate authorized by the Bond
    Authorization Act, as amended at the time of the making of
    the contract of sale, payable semi-annually, may be made
    registerable as to principal, and may be made payable and
    callable as provided on any date at a price of par and
    accrued interest under such terms and conditions as may be
    fixed by the ordinance authorizing the issuance of the
    bonds. Bonds issued under this Section are negotiable
    instruments. In case any officer whose signature appears on
    the bonds or coupons ceases to hold that office before the
    bonds are delivered, such officer's signature shall
    nevertheless be valid and sufficient for all purposes the
    same as though such officer had remained in office until
    the bonds were delivered. The bonds shall be sold in such
    manner and upon such terms as the board of commissioners
    shall determine, except that the selling price shall be
    such that the interest cost to the District on of the
    proceeds of the bonds shall not exceed the maximum rate
    authorized by the Bond Authorization Act, as amended at the
    time of the making of the contract of sale, payable
    semi-annually, computed to maturity according to the
    standard table of bond values. Bonds issued by the District
    shall not be considered indebtedness for purposes of any
    statutory limitation and may be issued in an amount or
    amounts, including existing indebtedness, in excess of any
    heretofore or hereafter imposed statutory limitation as to
    indebtedness. A request to issue revenue bonds by the
    District Commission must be submitted for approval to the
    county board of the county in which the district is
    situated. The county board has 30 calendar days to approve
    the issuance of such bonds. If the county board does not
    approve or disapprove the issuance of the bonds within 30
    calendar days after the receipt of such request, the
    request shall be deemed approved. The District shall direct
    the county to use moneys in the County Flood Prevention
    Occupation Tax Fund to pay for bonds issued.
        (11) To acquire property by gift, grant, or eminent
    domain, in accordance with the Eminent Domain Act. Any
    action by the District to acquire property by eminent
    domain requires the express approval of the county board.
        (12) To retain professional staff to carry out the
    functions of the District. Any flood prevention district
    shall employ a Chief Supervisor of Construction and the
    Works with appropriate professional qualifications,
    including a degree in engineering, construction,
    hydrology, or a related field, or an equivalent combination
    of education and experience. The Chief Supervisor of
    Construction and the Works shall be vested with the
    authority to carry out the duties and mission of the Flood
    Prevention District, pursuant to the direction and
    supervision of the Board of Commissioners. The Chief
    Supervisor of Construction and the Works may hire
    additional staff as necessary to carry out the duties and
    mission of the district, including administrative support
    personnel. Two or more districts may, through an
    intergovernmental agreement, share the services of a Chief
    Supervisor of Construction and the Works, support staff, or
    both. If 2 districts are adjoining and share a common
    federal levee, they must retain the services of the same
    person as Chief Supervisor of Construction and the Works.
        (13) To conduct an audit of any drainage, levee, or
    sanitary district within the territory of the flood
    prevention district.    
        (14) To reimburse any county for costs advanced by the
    county for expenses that would have otherwise been paid out
    of the County Flood Prevention Occupation Tax Fund, had
    such fund been established at the time of the expenditure.
    Nothing in this Section shall be construed to permit a
    county to seek reimbursement from a flood prevention
    district for any expense related to levee maintenance,
    repair, improvement, construction, staff, operating
    expenses, levee or river-related scientific studies, the
    construction of facilities for any such purpose, or any
    other non-emergency levee related expense that occurred
    prior to an emergency situation involving the levees within
    such county.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 25)
    Sec. 25. Flood prevention retailers' and service
occupation taxes Retailers' occupation tax.
    (a) If the Board of Commissioners of a flood prevention
district determines that an emergency situation exists
regarding levee repair or flood prevention, and upon an
ordinance confirming the determination or resolution adopted
by the affirmative vote of a majority of the members of the
county board of the county in which the district is situated,
the county it may impose a flood prevention retailers'
occupation tax upon all persons engaged in the business of
selling tangible personal property at retail within the
territory of the district to provide revenue to pay the costs
of providing emergency levee repair and flood prevention and to
secure the payment of bonds, notes, and other evidences of
indebtedness issued under this Act for a period not to exceed
25 years or as required to repay the bonds, notes, and other
evidences of indebtedness issued under this Act issued pursuant
to Section 20 of this Act. The tax rate shall be 0.25% of the
gross receipts from all taxable sales made in the course of
that business. The tax imposed under this Section and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce this
Section; to collect all taxes and penalties so collected in the
manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder.
    In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
all provisions of the Uniform Penalty and Interest Act as if
those provisions were set forth in this subsection.
    Persons subject to any tax imposed under this Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination in a single
amount with State taxes that sellers are required to collect
under the Use Tax Act, under any bracket schedules the
Department may prescribe.
    If a tax is imposed under this subsection (a), a tax shall
also be imposed under subsection (b) of this Section.
    (b) If a tax has been imposed under subsection (a), a flood
prevention service occupation tax shall also be imposed upon
all persons engaged within the territory of the district
engaged in the business of making sales of service, who, as an
incident to making the sales of service, transfer tangible
personal property within the territory of the district, either
in the form of tangible personal property or in the form of
real estate as an incident to a sale of service to provide
revenue to pay the costs of providing emergency levee repair
and flood prevention and to secure the payment of bonds, notes,
and other evidences of indebtedness issued under this Act for a
period not to exceed 25 years or as required to repay the
bonds, notes, and other evidences of indebtedness. The tax rate
shall be 0.25% of the selling price of all tangible personal
property transferred.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder.
    In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that the that
reference to State in the definition of supplier maintaining a
place of business in this State means the district), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the district), 5,
7, 8 (except that the jurisdiction to which the tax is a debt
to the extent indicated in that Section 8 is the district), 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the district), Section 15, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
    (c) The taxes This additional tax imposed in subsections
(a) and (b) may not be imposed on personal property titled or
registered with an agency of the State; food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption);
prescription and non-prescription medicines, drugs, and
medical appliances; modifications to a motor vehicle for the
purpose of rendering it usable by a disabled person; or
insulin, urine testing materials, and syringes and needles used
by diabetics.
    (d) Nothing in this Section shall be construed to authorize
the district to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
    (e) The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or a serviceman under the Service Occupation Tax Act
permits the retailer or serviceman to engage in a business that
is taxable without registering separately with the Department
under an ordinance or resolution under this Section.
    (f) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the Flood
Prevention Occupation Tax Fund, which shall be an
unappropriated trust fund held outside the State treasury.
    On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
that disbursement of stated sums of money to the counties from
which retailers or servicemen have paid taxes or penalties to
the Department during the second preceding calendar month. The
amount to be paid to each county is equal to the amount (not
including credit memoranda) collected from the county under
this Section during the second preceding calendar month by the
Department, (i) less 2% of that amount, which shall be
deposited into the Tax Compliance and Administration Fund and
shall be used by the Department in administering and enforcing
the provisions of this Section on behalf of the county, (ii)
plus an amount that the Department determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body; (iii) less an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of the county; and (iv) less any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were
erroneously paid to the county. When certifying the amount of a
monthly disbursement to a county under this Section, the
Department shall increase or decrease the amounts by an amount
necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
    Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the counties
provided for in this Section, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with directions contained in the certification.
    If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the Flood Prevention Occupation Tax Fund.
    (g) If a county flood prevention district board imposes a
tax under this Section, then the county board shall, by
ordinance, discontinue the tax upon the payment of all bonded
indebtedness of the flood prevention district District. The tax
shall not be discontinued until all bonded indebtedness of the
District has been paid.
    (h) Any ordinance imposing the tax under this Section, or
any ordinance that discontinues the tax, must be certified by
the county clerk and filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of
July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
    (j) County Flood Prevention Occupation Tax Fund. All
proceeds received by a county from a tax distribution under
this Section must be maintained in a special fund known as the
[name of county] flood prevention occupation tax fund. The
county shall, at the direction of the flood prevention
district, use moneys in the fund to pay the costs of providing
emergency levee repair and flood prevention and to pay bonds,
notes, and other evidences of indebtedness issued under this
Act.
    (k) (j) This Section may be cited as the Flood Prevention
Occupation Tax Law.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 30)
    Sec. 30. Disbursement of federal funds.
    (a) Any reimbursements for the construction of flood
protection facilities shall be appropriated to each county
flood prevention district in accordance with the location of
the specific facility for which the federal appropriation is
made.
    (b) If there are federal reimbursements to a county flood
prevention district for construction of flood protection
facilities that were built using the proceeds of bonds, notes,
or other evidences of indebtedness revenues authorized by this
Act, those funds shall be used for early retirement of such
bonds, notes, or other evidences of indebtedness issued in
accordance with this Act.
    (c) When all bonds, notes, or other evidences of
indebtedness bond obligations of the District have been paid,
any remaining federal reimbursement moneys shall be remitted to
the county treasurer for deposit into a special fund for the
continued long-term maintenance of federal levees and flood
protection facilities, pursuant to the direction of the county
board.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 35)
    Sec. 35. Financial audit of the District Commission. A
financial audit of the District Commission shall be conducted
annually by a certified public accountant (CPA) that is
licensed at the time of the audit by the Illinois Department of
Financial and Professional Regulation. The CPA shall meet all
of the general standards concerning qualifications,
independence, due professional care, and quality control as
required by the Government Auditing Standards, 1994 Revision,
Chapter 3, including the requirements for continuing
professional education and external peer review. The financial
audit is to be performed in accordance with generally accepted
auditing standards issued by the American Institute of
Certified Public Accountants (AICPA) for field work and
reporting, generally accepted government auditing standards
(GAGAS) and AICPA Statements on Auditing Standards (SAS)
current at the time the audit is commenced. The audit shall be
made publicly available and sent to the county board chairman
of the county in which the district is situated and to the
Illinois Secretary of State.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 40)
    Sec. 40. Budget of the District Commission. The District
Commission shall adopt an annual budget by August 31 of each
year for the fiscal year beginning October 1. Such budget shall
include expected revenues by source and expenditures by project
or by function for the following year. The budget must be
approved by the county board of the county in which the
district is situated prior to any expenditure by the District
Commission for the fiscal year beginning October 1. The county
board must approve or disapprove the budget of the District
commission within 30 calendar days after the budget is received
by the county board. If the county board does not act to
approve or disapprove the budget within 30 calendar days of
receipt, it shall stand as approved.
    In addition, the District Commission shall submit an annual
report to the county board by August 31 of each year detailing
the activities of the district. This report must also include
any information submitted to the flood prevention district by a
drainage, levee, or sanitary district in accordance with
Section 4-45 of the Illinois Drainage Code or Section 2-2 of
the Metro-East Sanitary District Act.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 45)
    Sec. 45. Procurement. The District Commission shall
conduct all procurements in accordance with the requirements of
the Local Government Professional Services Selection Act and
any competitive bid requirements contained in Section 5-1022 of
the Counties Code.
(Source: 95SB2052eng.)
 
    (S.B. 2052eng, 95th G.A., Sec. 50)
    Sec. 50. Contracts for construction. A request for any
construction contract of more than $10,000 by the District
Commission must be submitted for approval to the county board
of the county in which the district is situated. The county
board has 30 calendar days to approve the construction
contract. If the county board does not approve or disapprove
the construction contract within 30 calendar days after the
receipt of such request, the request shall be deemed approved.
(Source: 95SB2052eng.)
 
    Section 10. If and only if Senate Bill 2052 of the 95th
General Assembly becomes law, then the Intergovernmental
Cooperation Act is amended by changing Section 3.9 as follows:
 
    (5 ILCS 220/3.9)
    Sec. 3.9. Flood prevention. Two or more county flood
prevention districts may enter into an intergovernmental
agreement to provide any services authorized in the Flood
Prevention District Act, to construct, reconstruct, repair, or
otherwise provide any facilities described in that Act either
within or outside of any district's corporate limits, to issue
bonds, notes, or other evidences of indebtedness, to pledge the
taxes authorized to be imposed pursuant to Section 25 of that
Act to the obligations of any other district, and to exercise
any other power authorized in that Act.
(Source: 95SB2052eng.)
 
    Section 20. If and only if Senate Bill 2052 of the 95th
General Assembly becomes law, then the Use Tax Act is amended
by changing Section 2 as follows:
 
    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
    Sec. 2. "Use" means the exercise by any person of any right
or power over tangible personal property incident to the
ownership of that property, except that it does not include the
sale of such property in any form as tangible personal property
in the regular course of business to the extent that such
property is not first subjected to a use for which it was
purchased, and does not include the use of such property by its
owner for demonstration purposes: Provided that the property
purchased is deemed to be purchased for the purpose of resale,
despite first being used, to the extent to which it is resold
as an ingredient of an intentionally produced product or
by-product of manufacturing. "Use" does not mean the
demonstration use or interim use of tangible personal property
by a retailer before he sells that tangible personal property.
For watercraft or aircraft, if the period of demonstration use
or interim use by the retailer exceeds 18 months, the retailer
shall pay on the retailers' original cost price the tax imposed
by this Act, and no credit for that tax is permitted if the
watercraft or aircraft is subsequently sold by the retailer.
"Use" does not mean the physical incorporation of tangible
personal property, to the extent not first subjected to a use
for which it was purchased, as an ingredient or constituent,
into other tangible personal property (a) which is sold in the
regular course of business or (b) which the person
incorporating such ingredient or constituent therein has
undertaken at the time of such purchase to cause to be
transported in interstate commerce to destinations outside the
State of Illinois: Provided that the property purchased is
deemed to be purchased for the purpose of resale, despite first
being used, to the extent to which it is resold as an
ingredient of an intentionally produced product or by-product
of manufacturing.
    "Watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
    "Purchase at retail" means the acquisition of the ownership
of or title to tangible personal property through a sale at
retail.
    "Purchaser" means anyone who, through a sale at retail,
acquires the ownership of tangible personal property for a
valuable consideration.
    "Sale at retail" means any transfer of the ownership of or
title to tangible personal property to a purchaser, for the
purpose of use, and not for the purpose of resale in any form
as tangible personal property to the extent not first subjected
to a use for which it was purchased, for a valuable
consideration: Provided that the property purchased is deemed
to be purchased for the purpose of resale, despite first being
used, to the extent to which it is resold as an ingredient of
an intentionally produced product or by-product of
manufacturing. For this purpose, slag produced as an incident
to manufacturing pig iron or steel and sold is considered to be
an intentionally produced by-product of manufacturing. "Sale
at retail" includes any such transfer made for resale unless
made in compliance with Section 2c of the Retailers' Occupation
Tax Act, as incorporated by reference into Section 12 of this
Act. Transactions whereby the possession of the property is
transferred but the seller retains the title as security for
payment of the selling price are sales.
    "Sale at retail" shall also be construed to include any
Illinois florist's sales transaction in which the purchase
order is received in Illinois by a florist and the sale is for
use or consumption, but the Illinois florist has a florist in
another state deliver the property to the purchaser or the
purchaser's donee in such other state.
    Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
    The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
    "Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits, property other than as hereinafter provided, and
services, but not including the value of or credit given for
traded-in tangible personal property where the item that is
traded-in is of like kind and character as that which is being
sold, and shall be determined without any deduction on account
of the cost of the property sold, the cost of materials used,
labor or service cost or any other expense whatsoever, but does
not include interest or finance charges which appear as
separate items on the bill of sale or sales contract nor
charges that are added to prices by sellers on account of the
seller's tax liability under the "Retailers' Occupation Tax
Act", or on account of the seller's duty to collect, from the
purchaser, the tax that is imposed by this Act, or, except as
otherwise provided with respect to any cigarette tax imposed by
a home rule unit, on account of the seller's tax liability
under any local occupation tax administered by the Department,
or, except as otherwise provided with respect to any cigarette
tax imposed by a home rule unit on account of the seller's duty
to collect, from the purchasers, the tax that is imposed under
any local use tax administered by the Department or on account
of the seller's tax liability under Section 8-11-1 of the
Illinois Municipal Code, as heretofore and hereafter amended,
or on account of the seller's tax liability under the "County
Retailers' Occupation Tax Act". Effective December 1, 1985,
"selling price" shall include charges that are added to prices
by sellers on account of the seller's tax liability under the
Cigarette Tax Act, on account of the seller's duty to collect,
from the purchaser, the tax imposed under the Cigarette Use Tax
Act, and on account of the seller's duty to collect, from the
purchaser, any cigarette tax imposed by a home rule unit.
    The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
    "Retailer" means and includes every person engaged in the
business of making sales at retail as defined in this Section.
    A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a retailer hereunder with respect to such
sales (and not primarily in a service occupation)
notwithstanding the fact that such person designs and produces
such tangible personal property on special order for the
purchaser and in such a way as to render the property of value
only to such purchaser, if such tangible personal property so
produced on special order serves substantially the same
function as stock or standard items of tangible personal
property that are sold at retail.
    A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is a retailer with respect to such transactions, excepting only
a person organized and operated exclusively for charitable,
religious or educational purposes either (1), to the extent of
sales by such person to its members, students, patients or
inmates of tangible personal property to be used primarily for
the purposes of such person, or (2), to the extent of sales by
such person of tangible personal property which is not sold or
offered for sale by persons organized for profit. The selling
of school books and school supplies by schools at retail to
students is not "primarily for the purposes of" the school
which does such selling. This paragraph does not apply to nor
subject to taxation occasional dinners, social or similar
activities of a person organized and operated exclusively for
charitable, religious or educational purposes, whether or not
such activities are open to the public.
    A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not a
retailer under this Act with respect to such transactions.
    Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
retailers hereunder when engaged in such business.
    The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail or a sale through a
bulk vending machine does not make such person a retailer
hereunder. However, any person who is engaged in a business
which is not subject to the tax imposed by the "Retailers'
Occupation Tax Act" because of involving the sale of or a
contract to sell real estate or a construction contract to
improve real estate, but who, in the course of conducting such
business, transfers tangible personal property to users or
consumers in the finished form in which it was purchased, and
which does not become real estate, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is a retailer to the
extent of the value of the tangible personal property so
transferred. If, in such transaction, a separate charge is made
for the tangible personal property so transferred, the value of
such property, for the purposes of this Act, is the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property.
    "Retailer maintaining a place of business in this State",
or any like term, means and includes any of the following
retailers:
        1. A retailer having or maintaining within this State,
    directly or by a subsidiary, an office, distribution house,
    sales house, warehouse or other place of business, or any
    agent or other representative operating within this State
    under the authority of the retailer or its subsidiary,
    irrespective of whether such place of business or agent or
    other representative is located here permanently or
    temporarily, or whether such retailer or subsidiary is
    licensed to do business in this State. However, the
    ownership of property that is located at the premises of a
    printer with which the retailer has contracted for printing
    and that consists of the final printed product, property
    that becomes a part of the final printed product, or copy
    from which the printed product is produced shall not result
    in the retailer being deemed to have or maintain an office,
    distribution house, sales house, warehouse, or other place
    of business within this State.
        2. A retailer soliciting orders for tangible personal
    property by means of a telecommunication or television
    shopping system (which utilizes toll free numbers) which is
    intended by the retailer to be broadcast by cable
    television or other means of broadcasting, to consumers
    located in this State.
        3. A retailer, pursuant to a contract with a
    broadcaster or publisher located in this State, soliciting
    orders for tangible personal property by means of
    advertising which is disseminated primarily to consumers
    located in this State and only secondarily to bordering
    jurisdictions.
        4. A retailer soliciting orders for tangible personal
    property by mail if the solicitations are substantial and
    recurring and if the retailer benefits from any banking,
    financing, debt collection, telecommunication, or
    marketing activities occurring in this State or benefits
    from the location in this State of authorized installation,
    servicing, or repair facilities.
        5. A retailer that is owned or controlled by the same
    interests that own or control any retailer engaging in
    business in the same or similar line of business in this
    State.
        6. A retailer having a franchisee or licensee operating
    under its trade name if the franchisee or licensee is
    required to collect the tax under this Section.
        7. A retailer, pursuant to a contract with a cable
    television operator located in this State, soliciting
    orders for tangible personal property by means of
    advertising which is transmitted or distributed over a
    cable television system in this State.
        8. A retailer engaging in activities in Illinois, which
    activities in the state in which the retail business
    engaging in such activities is located would constitute
    maintaining a place of business in that state.
    "Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
(Source: P.A. 94-1074, eff. 12-26-06.)
 
    Section 30. If and only if Senate Bill 2052 of the 95th
General Assembly becomes law, then the Retailers' Occupation
Tax Act is amended by changing Section 1 as follows:
 
    (35 ILCS 120/1)  (from Ch. 120, par. 440)
    Sec. 1. Definitions. "Sale at retail" means any transfer of
the ownership of or title to tangible personal property to a
purchaser, for the purpose of use or consumption, and not for
the purpose of resale in any form as tangible personal property
to the extent not first subjected to a use for which it was
purchased, for a valuable consideration: Provided that the
property purchased is deemed to be purchased for the purpose of
resale, despite first being used, to the extent to which it is
resold as an ingredient of an intentionally produced product or
byproduct of manufacturing. For this purpose, slag produced as
an incident to manufacturing pig iron or steel and sold is
considered to be an intentionally produced byproduct of
manufacturing. Transactions whereby the possession of the
property is transferred but the seller retains the title as
security for payment of the selling price shall be deemed to be
sales.
    "Sale at retail" shall be construed to include any transfer
of the ownership of or title to tangible personal property to a
purchaser, for use or consumption by any other person to whom
such purchaser may transfer the tangible personal property
without a valuable consideration, and to include any transfer,
whether made for or without a valuable consideration, for
resale in any form as tangible personal property unless made in
compliance with Section 2c of this Act.
    Sales of tangible personal property, which property, to the
extent not first subjected to a use for which it was purchased,
as an ingredient or constituent, goes into and forms a part of
tangible personal property subsequently the subject of a "Sale
at retail", are not sales at retail as defined in this Act:
Provided that the property purchased is deemed to be purchased
for the purpose of resale, despite first being used, to the
extent to which it is resold as an ingredient of an
intentionally produced product or byproduct of manufacturing.
    "Sale at retail" shall be construed to include any Illinois
florist's sales transaction in which the purchase order is
received in Illinois by a florist and the sale is for use or
consumption, but the Illinois florist has a florist in another
state deliver the property to the purchaser or the purchaser's
donee in such other state.
    Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or other
containers, utensils, straws, placemats, napkins, doggie bags,
and wrapping or packaging materials that are transferred to
customers as part of the sale of food or beverages in the
ordinary course of business.
    The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
    A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is engaged in the business of selling tangible personal
property at retail with respect to such transactions, excepting
only a person organized and operated exclusively for
charitable, religious or educational purposes either (1), to
the extent of sales by such person to its members, students,
patients or inmates of tangible personal property to be used
primarily for the purposes of such person, or (2), to the
extent of sales by such person of tangible personal property
which is not sold or offered for sale by persons organized for
profit. The selling of school books and school supplies by
schools at retail to students is not "primarily for the
purposes of" the school which does such selling. The provisions
of this paragraph shall not apply to nor subject to taxation
occasional dinners, socials or similar activities of a person
organized and operated exclusively for charitable, religious
or educational purposes, whether or not such activities are
open to the public.
    A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not
engaged in the business of selling tangible personal property
at retail with respect to such transactions.
    "Purchaser" means anyone who, through a sale at retail,
acquires the ownership of or title to tangible personal
property for a valuable consideration.
    "Reseller of motor fuel" means any person engaged in the
business of selling or delivering or transferring title of
motor fuel to another person other than for use or consumption.
No person shall act as a reseller of motor fuel within this
State without first being registered as a reseller pursuant to
Section 2c or a retailer pursuant to Section 2a.
    "Selling price" or the "amount of sale" means the
consideration for a sale valued in money whether received in
money or otherwise, including cash, credits, property, other
than as hereinafter provided, and services, but not including
the value of or credit given for traded-in tangible personal
property where the item that is traded-in is of like kind and
character as that which is being sold, and shall be determined
without any deduction on account of the cost of the property
sold, the cost of materials used, labor or service cost or any
other expense whatsoever, but does not include charges that are
added to prices by sellers on account of the seller's tax
liability under this Act, or on account of the seller's duty to
collect, from the purchaser, the tax that is imposed by the Use
Tax Act, or, except as otherwise provided with respect to any
cigarette tax imposed by a home rule unit, on account of the
seller's tax liability under any local occupation tax
administered by the Department, or, except as otherwise
provided with respect to any cigarette tax imposed by a home
rule unit on account of the seller's duty to collect, from the
purchasers, the tax that is imposed under any local use tax
administered by the Department or on account of the seller's
tax liability under Section 8-11-1 of the Illinois Municipal
Code, as heretofore and hereafter amended, or on account of the
seller's tax liability under the County Retailers' Occupation
Tax Act, or on account of the seller's tax liability under the
Home Rule Municipal Soft Drink Retailers' Occupation Tax, or on
account of the seller's tax liability under any tax imposed
under the "Regional Transportation Authority Act", approved
December 12, 1973. Effective December 1, 1985, "selling price"
shall include charges that are added to prices by sellers on
account of the seller's tax liability under the Cigarette Tax
Act, on account of the sellers' duty to collect, from the
purchaser, the tax imposed under the Cigarette Use Tax Act, and
on account of the seller's duty to collect, from the purchaser,
any cigarette tax imposed by a home rule unit.
    The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
    "Gross receipts" from the sales of tangible personal
property at retail means the total selling price or the amount
of such sales, as hereinbefore defined. In the case of charge
and time sales, the amount thereof shall be included only as
and when payments are received by the seller. Receipts or other
consideration derived by a seller from the sale, transfer or
assignment of accounts receivable to a wholly owned subsidiary
will not be deemed payments prior to the time the purchaser
makes payment on such accounts.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
    The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail, or a sale through a
bulk vending machine, does not constitute engaging in a
business of selling such tangible personal property at retail
within the meaning of this Act; provided that any person who is
engaged in a business which is not subject to the tax imposed
by this Act because of involving the sale of or a contract to
sell real estate or a construction contract to improve real
estate or a construction contract to engineer, install, and
maintain an integrated system of products, but who, in the
course of conducting such business, transfers tangible
personal property to users or consumers in the finished form in
which it was purchased, and which does not become real estate
or was not engineered and installed, under any provision of a
construction contract or real estate sale or real estate sales
agreement entered into with some other person arising out of or
because of such nontaxable business, is engaged in the business
of selling tangible personal property at retail to the extent
of the value of the tangible personal property so transferred.
If, in such a transaction, a separate charge is made for the
tangible personal property so transferred, the value of such
property, for the purpose of this Act, shall be the amount so
separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of
such property, for the purposes of this Act, is the cost to the
transferor of such tangible personal property. Construction
contracts for the improvement of real estate consisting of
engineering, installation, and maintenance of voice, data,
video, security, and all telecommunication systems do not
constitute engaging in a business of selling tangible personal
property at retail within the meaning of this Act if they are
sold at one specified contract price.
    A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a person engaged in the business of
selling tangible personal property at retail hereunder with
respect to such sales (and not primarily in a service
occupation) notwithstanding the fact that such person designs
and produces such tangible personal property on special order
for the purchaser and in such a way as to render the property
of value only to such purchaser, if such tangible personal
property so produced on special order serves substantially the
same function as stock or standard items of tangible personal
property that are sold at retail.
    Persons who engage in the business of transferring tangible
personal property upon the redemption of trading stamps are
engaged in the business of selling such property at retail and
shall be liable for and shall pay the tax imposed by this Act
on the basis of the retail value of the property transferred
upon redemption of such stamps.
    "Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
(Source: P.A. 92-213, eff. 1-1-02.)
 
    Section 35. If and only if Senate Bill 2052 of the 95th
General Assembly becomes law, then the Southwestern Illinois
Development Authority Act is amended by changing Section 3 as
follows:
 
    (70 ILCS 520/3)  (from Ch. 85, par. 6153)
    Sec. 3. The following terms, whenever used or referred to
in this Act, shall have the following meanings, except in such
instances where the context may clearly indicate otherwise:
    (a) "Authority" means the Southwestern Illinois
Development Authority created by this Act.
    (b) "Governmental agency" means any federal, State or local
governmental body, and any agency or instrumentality thereof,
corporate or otherwise.
    (c) "Person" means any natural person, firm, partnership,
corporation, both domestic and foreign, company, association
or joint stock association and includes any trustee, receiver,
assignee or personal representative thereof.
    (d) "Revenue bond" means any bond issued by the Authority
the principal and interest of which is payable solely from
revenues or income derived from any project or activity of the
Authority.
    (e) "Board" means the Southwestern Illinois Development
Authority Board of Directors.
    (f) "Governor" means the Governor of the State of Illinois.
    (g) "City" means any city, village, incorporated town or
township within the geographical territory of the Authority.
    (h) "Industrial project" means (1) a capital project,
including one or more buildings and other structures,
improvements, machinery and equipment whether or not on the
same site or sites now existing or hereafter acquired, suitable
for use by any manufacturing, industrial, research,
transportation or commercial enterprise including but not
limited to use as a factory, mill, processing plant, assembly
plant, packaging plant, fabricating plant, office building,
industrial distribution center, warehouse, repair, overhaul or
service facility, freight terminal, research facility, test
facility, railroad facility, solid waste and wastewater
treatment and disposal sites and other pollution control
facilities, resource or waste reduction, recovery, treatment
and disposal facilities, and including also the sites thereof
and other rights in land therefor whether improved or
unimproved, site preparation and landscaping and all
appurtenances and facilities incidental thereto such as
utilities, access roads, railroad sidings, truck docking and
similar facilities, parking facilities, dockage, wharfage,
railroad roadbed, track, trestle, depot, terminal, switching
and signaling equipment or related equipment and other
improvements necessary or convenient thereto; or (2) any land,
buildings, machinery or equipment comprising an addition to or
renovation, rehabilitation or improvement of any existing
capital project.
    (i) "Housing project" or "residential project" includes a
specific work or improvement undertaken to provide dwelling
accommodations, including the acquisition, construction or
rehabilitation of lands, buildings and community facilities
and in connection therewith to provide nonhousing facilities
which are an integral part of a planned large-scale project or
new community.
    (j) "Commercial project" means any project, including but
not limited to one or more buildings and other structures,
improvements, machinery and equipment whether or not on the
same site or sites now existing or hereafter acquired, suitable
for use by any retail or wholesale concern, distributorship or
agency, any cultural facilities of a for-profit or
not-for-profit type including but not limited to educational,
theatrical, recreational and entertainment, sports facilities,
racetracks, stadiums, convention centers, exhibition halls,
arenas, opera houses and theaters, waterfront improvements,
swimming pools, boat storage, moorage, docking facilities,
restaurants, velodromes, coliseums, sports training
facilities, parking facilities, terminals, hotels and motels,
gymnasiums, medical facilities and port facilities.
    (k) "Unit of local government" means a unit of local
government, as defined in Section 1 of Article VII of the
Illinois Constitution, and any local public entity as that term
is defined in the Local Governmental and Governmental Employees
Tort Immunity Act and such unit of local government or local
public entity is located within the geographical territory of
the Authority or, for the purposes of the Flood Prevention
District Act, is located within Monroe County, Illinois.
    (l) "Local government project" means a project or other
undertaking that is authorized or required by law to be
acquired, constructed, reconstructed, equipped, improved,
rehabilitated, replaced, maintained, or otherwise undertaken
in any manner by a unit of local government.
    (m) "Local government security" means a bond, note, or
other evidence of indebtedness that a unit of local government
is legally authorized to issue for the purpose of financing a
public purpose project or to issue for any other lawful public
purpose under any provision of the Illinois Constitution or
laws of this State, whether the obligation is payable from
taxes or revenues, rates, charges, assessments,
appropriations, grants, or any other lawful source or
combination thereof, and specifically includes, without
limitation, obligations under any lease or lease purchase
agreement lawfully entered into by the unit of local government
for the acquisition or use of facilities or equipment.
    (n) "Project" means an industrial, housing, residential,
commercial, local government, or service project or any
combination thereof provided that all uses shall fall within
one of the categories described above. Any project, of any
nature whatsoever, shall automatically include all site
improvements and new construction involving sidewalks, sewers,
solid waste and wastewater treatment and disposal sites and
other pollution control facilities, resource or waste
reduction, recovery, treatment and disposal facilities, parks,
open spaces, wildlife sanctuaries, streets, highways and
runways.
    (o) "Lease agreement" shall mean an agreement whereby a
project acquired by the Authority by purchase, gift or lease is
leased to any person or corporation which will use or cause the
project to be used as a project as heretofore defined upon
terms providing for lease rental payments at least sufficient
to pay when due all principal of and interest and premium, if
any, on any bonds, notes or other evidences of indebtedness of
the Authority issued with respect to such project, providing
for the maintenance, insurance and operation of the project on
terms satisfactory to the Authority and providing for
disposition of the project upon termination of the lease term,
including purchase options or abandonment of the premises, with
such other terms as may be deemed desirable by the Authority.
    (p) "Loan agreement" means any agreement pursuant to which
the Authority agrees to loan the proceeds of its bonds, notes
or other evidences of indebtedness issued with respect to a
project to any person or corporation which will use or cause
the project to be used as a project as heretofore defined upon
terms providing for loan repayment installments at least
sufficient to pay when due all principal of and interest and
premium, if any, on any bonds, notes or other evidences of
indebtedness of the Authority issued with respect to the
project, providing for maintenance, insurance and operation of
the project on terms satisfactory to the Authority and
providing for other matters as may be deemed advisable by the
Authority.
    (q) "Financial aid" means the expenditure of Authority
funds or funds provided by the Authority through the issuance
of its revenue bonds, notes or other evidences of indebtedness
for the development, construction, acquisition or improvement
of a project.
    (r) "Costs incurred in connection with the development,
construction, acquisition or improvement of a project" means
the following: the cost of purchase and construction of all
lands and improvements in connection therewith and equipment
and other property, rights, easements and franchises acquired
which are deemed necessary for such construction; financing
charges; interest costs with respect to bonds, notes and other
evidences of indebtedness of the Authority prior to and during
construction and for a period of 6 months thereafter;
engineering and legal expenses; the costs of plans,
specifications, surveys and estimates of costs and other
expenses necessary or incident to determining the feasibility
or practicability of any project, together with such other
expenses as may be necessary or incident to the financing,
insuring, acquisition and construction of a specific project
and the placing of the same in operation.
    (s) "Terminal" means a public place, station or depot for
receiving and delivering passengers, baggage, mail, freight or
express matter and any combination thereof in connection with
the transportation of persons and property on water or land or
in the air.
    (t) "Terminal facilities" means all land, buildings,
structures, improvements, equipment and appliances useful in
the operation of public warehouse, storage and transportation
facilities and industrial, manufacturing or commercial
activities for the accommodation of or in connection with
commerce by water or land or in the air or useful as an aid, or
constituting an advantage or convenience to, the safe landing,
taking off and navigation of aircraft or the safe and efficient
operation or maintenance of a public airport.
    (u) "Port facilities" means all public structures, except
terminal facilities as defined herein, that are in, over, under
or adjacent to navigable waters and are necessary for or
incident to the furtherance of water commerce and includes the
widening and deepening of slips, harbors and navigable waters.
    (v) "Airport" means any locality, either land or water,
which is used or designed for the landing and taking off of
aircraft or for the location of runways, landing fields,
aerodromes, hangars, buildings, structures, airport roadways
and other facilities.
(Source: P.A. 85-591; 86-1455.)
 
    Section 45. If and only if Senate Bill 2052 of the 95th
General Assembly becomes law, then the Metro-East Sanitary
District Act of 1974 is amended by changing Section 5-1 as
follows:
 
    (70 ILCS 2905/5-1)  (from Ch. 42, par. 505-1)
    Sec. 5-1. (a) The board may levy and collect taxes for
corporate purposes. Such taxes shall be levied by ordinance
specifying the purposes for which the same are required, and a
certified copy of such ordinance shall be filed with the county
clerk of the county in which the predecessor district was
organized, on or before the second Tuesday in August, as
provided in Section 122 of the Revenue Act of 1939 (superseded
by Section 14-10 of the Property Tax Code). Any excess funds
accumulated prior to January 1, 2008 by the sanitary district
that are collected by levying taxes pursuant to 745 ILCS
10/9-107 may be expended by the sanitary district to maintain,
repair, improve, or construct levees or any part of the levee
system and to provide capital moneys for levee or river-related
scientific studies, including the construction of facilities
for such purposes. For the purposes of this subsection (a), the
excess funds withdrawn from the Local Governmental and
Governmental Employees Tort Immunity Fund may not be more than
90% of the balance of that fund on December 31, 2007. After the
assessment for the current year has been equalized by the
Department of Revenue, the board shall, as soon as may be,
ascertain and certify to such county clerk the total value of
all taxable property lying within the corporate limits of such
districts in each of the counties in which the district is
situated, as the same is assessed and equalized for tax
purposes for the current year. The county clerk shall ascertain
the rate per cent which, upon the total valuation of all such
property, ascertained as above stated, would produce a net
amount not less than the amount so directed to be levied; and
the clerk shall, without delay, certify under his signature and
seal of office to the county clerk of such other county, in
which a portion of the district is situated such rate per cent;
and it shall be the duty of each of the county clerks to extend
such tax in a separate column upon the books of the collector
or collectors of the county taxes for the counties, against all
property in their respective counties, within the limits of the
district. All taxes so levied and certified shall be collected
and enforced in the same manner, and by the same officers as
county taxes, and shall be paid over by the officers collecting
the same, to the treasurer of the sanitary district, in the
manner and at the time provided by the Property Tax Code. The
aggregate amount of taxes levied for any one year, exclusive of
the amount levied for the payment of bonded indebtedness and
interest thereon, shall not exceed the rate of .20%, or the
rate limitation of the predecessor district in effect on July
1, 1967, or the rate limitation set by subsection (b) whichever
is greater, of value, as equalized or assessed by the
Department of Revenue. The foregoing limitations upon tax rates
may be increased or decreased under the referendum provisions
of the Property Tax Code.
    (b) The tax rate limit of the district may be changed to
.478% of the value of property as equalized or assessed by the
Department of Revenue for a period of 5 years and to .312% of
such value thereafter upon the approval of the electors of the
district of such a proposition submitted at any regular
election pursuant to a resolution of the board of commissioners
or submitted at an election for officers of the counties of St.
Clair and Madison in accordance with the general election law
upon a petition signed by not fewer than 10% of the legal
voters in the district, which percentage shall be determined on
the basis of the number of votes cast at the last general
election preceding the filing of such petition specifying the
tax rate to be submitted. Such petition shall be filed with the
executive director of the district not more than 10 months nor
less than 5 months prior to the election at which the question
is to be submitted to the voters of the district, and its
validity shall be determined as provided by the general
election law. The executive director shall certify the question
to the proper election officials, who shall submit the question
to the voters.
    Notice shall be given in the manner provided by the general
election law.
    Referenda initiated under this subsection shall be subject
to the provisions and limitations of the general election law.
    The question shall be in substantially the following form:
-------------------------------------------------------------
    Shall the maximum tax rate
for the Metro-East Sanitary
District be established at                  YES
.478% of the equalized assessed
value for 5 years and then at .312%   -----------------------
of the equalized assessed value
thereafter, instead of .2168%, the          NO
maximum rate otherwise applicable
to the next taxes to be extended?
-------------------------------------------------------------
    The ballot shall have printed thereon, but not as a part of
the proposition submitted, an estimate of the approximate
amount extendable under the proposed rate and of the
approximate amount extendable under the rate otherwise
applicable to the next taxes to be extended, such amounts being
computed upon the last known equalized assessed value;
provided, that any error, miscalculation or inaccuracy in
computing such amounts shall not invalidate or affect the
validity of any tax rate limit so adopted.
    If a majority of all ballots cast on such proposition shall
be in favor of the proposition, the tax rate limit so
established shall become effective with the levy next following
the referendum; provided that nothing in this subsection shall
be construed as precluding the extension of taxes at rates less
than that authorized by such referendum.
    Except as herein otherwise provided, the referenda
authorized by the terms of this subsection shall be conducted
in all respects in the manner provided by the general election
law.
(Source: P.A. 88-670, eff. 12-2-94.)
 
    Section 50. If and only if Senate Bill 2052 of the 95th
General Assembly becomes law, then the Local Governmental and
Governmental Employees Tort Immunity Act is amended by changing
Section 9-107 as follows:
 
    (745 ILCS 10/9-107)  (from Ch. 85, par. 9-107)
    Sec. 9-107. Policy; tax levy.
    (a) The General Assembly finds that the purpose of this
Section is to provide an extraordinary tax for funding expenses
relating to (i) tort liability, (ii) liability relating to
actions brought under the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 or the
Environmental Protection Act, but only until December 31, 2010,
(iii) insurance, and (iv) risk management programs. Thus, the
tax has been excluded from various limitations otherwise
applicable to tax levies. Notwithstanding the extraordinary
nature of the tax authorized by this Section, however, it has
become apparent that some units of local government are using
the tax revenue to fund expenses more properly paid from
general operating funds. These uses of the revenue are
inconsistent with the limited purpose of the tax authorization.
    Therefore, the General Assembly declares, as a matter of
policy, that (i) the use of the tax revenue authorized by this
Section for purposes not expressly authorized under this Act is
improper and (ii) the provisions of this Section shall be
strictly construed consistent with this declaration and the
Act's express purposes.
    (b) A local public entity may annually levy or have levied
on its behalf taxes upon all taxable property within its
territory at a rate that will produce a sum that will be
sufficient to: (i) pay the cost of insurance, individual or
joint self-insurance (including reserves thereon), including
all operating and administrative costs and expenses directly
associated therewith, claims services and risk management
directly attributable to loss prevention and loss reduction,
legal services directly attributable to the insurance,
self-insurance, or joint self-insurance program, and
educational, inspectional, and supervisory services directly
relating to loss prevention and loss reduction, participation
in a reciprocal insurer as provided in Sections 72, 76, and 81
of the Illinois Insurance Code, or participation in a
reciprocal insurer, all as provided in settlements or judgments
under Section 9-102, including all costs and reserves directly
attributable to being a member of an insurance pool, under
Section 9-103; (ii) pay the costs of and principal and interest
on bonds issued under Section 9-105; (iii) pay judgments and
settlements under Section 9-104 of this Act; (iv) discharge
obligations under Section 34-18.1 of the School Code; (v) pay
judgments and settlements under the federal Comprehensive
Environmental Response, Compensation, and Liability Act of
1980 and the Environmental Protection Act, but only until
December 31, 2010; (vi) pay the costs authorized by the
Metro-East Sanitary District Act of 1974 as provided in
subsection (a) of Section 5-1 of that Act (70 ILCS 2905/5-1);
and (vii) (vi) pay the cost of risk management programs.
Provided it complies with any other applicable statutory
requirements, the local public entity may self-insure and
establish reserves for expected losses for any property damage
or for any liability or loss for which the local public entity
is authorized to levy or have levied on its behalf taxes for
the purchase of insurance or the payment of judgments or
settlements under this Section. The decision of the board to
establish a reserve shall be based on reasonable actuarial or
insurance underwriting evidence and subject to the limits and
reporting provisions in Section 9-103.
    If a school district was a member of a
joint-self-health-insurance cooperative that had more
liability in outstanding claims than revenue to pay those
claims, the school board of that district may by resolution
make a one-time transfer from any fund in which tort immunity
moneys are maintained to the fund or funds from which payments
to a joint-self-health-insurance cooperative can be or have
been made of an amount not to exceed the amount of the
liability claim that the school district owes to the
joint-self-health-insurance cooperative or that the school
district paid within the 2 years immediately preceding the
effective date of this amendatory Act of the 92nd General
Assembly.
    Funds raised pursuant to this Section shall only be used
for the purposes specified in this Act, including protection
against and reduction of any liability or loss described
hereinabove and under Federal or State common or statutory law,
the Workers' Compensation Act, the Workers' Occupational
Diseases Act and the Unemployment Insurance Act. Funds raised
pursuant to this Section may be invested in any manner in which
other funds of local public entities may be invested under
Section 2 of the Public Funds Investment Act. Interest on such
funds shall be used only for purposes for which the funds can
be used or, if surplus, must be used for abatement of property
taxes levied by the local taxing entity.
    A local public entity may enter into intergovernmental
contracts with a term of not to exceed 12 years for the
provision of joint self-insurance which contracts may include
an obligation to pay a proportional share of a general
obligation or revenue bond or other debt instrument issued by a
local public entity which is a party to the intergovernmental
contract and is authorized by the terms of the contract to
issue the bond or other debt instrument. Funds due under such
contracts shall not be considered debt under any constitutional
or statutory limitation and the local public entity may levy or
have levied on its behalf taxes to pay for its proportional
share under the contract. Funds raised pursuant to
intergovernmental contracts for the provision of joint
self-insurance may only be used for the payment of any cost,
liability or loss against which a local public entity may
protect itself or self-insure pursuant to Section 9-103 or for
the payment of which such entity may levy a tax pursuant to
this Section, including tort judgments or settlements, costs
associated with the issuance, retirement or refinancing of the
bonds or other debt instruments, the repayment of the principal
or interest of the bonds or other debt instruments, the costs
of the administration of the joint self-insurance fund,
consultant, and risk care management programs or the costs of
insurance. Any surplus returned to the local public entity
under the terms of the intergovernmental contract shall be used
only for purposes set forth in subsection (a) of Section 9-103
and Section 9-107 or for abatement of property taxes levied by
the local taxing entity.
    Any tax levied under this Section shall be levied and
collected in like manner with the general taxes of the entity
and shall be exclusive of and in addition to the amount of tax
that entity is now or may hereafter be authorized to levy for
general purposes under any statute which may limit the amount
of tax which that entity may levy for general purposes. The
county clerk of the county in which any part of the territory
of the local taxing entity is located, in reducing tax levies
under the provisions of any Act concerning the levy and
extension of taxes, shall not consider any tax provided for by
this Section as a part of the general tax levy for the purposes
of the entity nor include such tax within any limitation of the
percent of the assessed valuation upon which taxes are required
to be extended for such entity.
    With respect to taxes levied under this Section, either
before, on, or after the effective date of this amendatory Act
of 1994:
        (1) Those taxes are excepted from and shall not be
    included within the rate limitation imposed by law on taxes
    levied for general corporate purposes by the local public
    entity authorized to levy a tax under this Section.
        (2) Those taxes that a local public entity has levied
    in reliance on this Section and that are excepted under
    paragraph (1) from the rate limitation imposed by law on
    taxes levied for general corporate purposes by the local
    public entity are not invalid because of any provision of
    the law authorizing the local public entity's tax levy for
    general corporate purposes that may be construed or may
    have been construed to restrict or limit those taxes
    levied, and those taxes are hereby validated. This
    validation of taxes levied applies to all cases pending on
    or after the effective date of this amendatory Act of 1994.
        (3) Paragraphs (1) and (2) do not apply to a hospital
    organized under Article 170 or 175 of the Township Code,
    under the Town Hospital Act, or under the Township
    Non-Sectarian Hospital Act and do not give any authority to
    levy taxes on behalf of such a hospital in excess of the
    rate limitation imposed by law on taxes levied for general
    corporate purposes. A hospital organized under Article 170
    or 175 of the Township Code, under the Town Hospital Act,
    or under the Township Non-Sectarian Hospital Act is not
    prohibited from levying taxes in support of tort liability
    bonds if the taxes do not cause the hospital's aggregate
    tax rate from exceeding the rate limitation imposed by law
    on taxes levied for general corporate purposes.
    Revenues derived from such tax shall be paid to the
treasurer of the local taxing entity as collected and used for
the purposes of this Section and of Section 9-102, 9-103, 9-104
or 9-105, as the case may be. If payments on account of such
taxes are insufficient during any year to meet such purposes,
the entity may issue tax anticipation warrants against the
current tax levy in the manner provided by statute.
(Source: P.A. 95-244, eff. 8-17-07.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.