Public Act 097-1035
 
HB1645 EnrolledLRB097 02977 HLH 43002 b


  
    AN ACT concerning revenue.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 1. Short title. This Act may be cited as the Live 
Adult Entertainment Facility Surcharge Act.
 
    Section 3. Findings. It is the intent of the General 
Assembly to ameliorate the negative secondary effects 
associated with the consumption of alcoholic beverages on the 
premises of sexually oriented businesses, or the proximity of 
sexually oriented businesses to facilities serving alcohol, so 
as to promote the health, safety, and welfare of the citizens 
of Illinois.
    This Act is not intended to directly or indirectly impose 
limitations or restrictions on live nude dancing, nor is it the 
intent of this Act to restrict or deny access by adults to live 
nude dancing performances that may be protected by the First 
Amendment of the United States Constitution or by the Illinois 
Constitution.
 
    Section 5. Definitions. As used in this Act:
    "Admission" means entry by a person into a live adult 
entertainment facility.
    "Department" means the Department of Revenue.
    "Live adult entertainment facility" means a striptease 
club or other business that serves or permits the consumption 
of alcohol on its premises, and, during at least 30 consecutive 
or nonconsecutive days in a calendar year, offers or provides 
activities by employees, agents, or contractors of the business 
that involve nude or partially denuded individuals that, when 
considered as a whole, appeal primarily to an interest in 
nudity or sex.
    "Nude or partially denuded individual" means an individual 
who is:
        (1) entirely unclothed; or
        (2) clothed in a manner that leaves uncovered or 
    visible through less than fully opaque clothing any portion 
    of the breasts below the top of the areola of the breasts, 
    if the person is female, or any portion of the genitals or 
    buttocks.
    "Operator" means any person who owns or operates a live 
adult entertainment facility in this State.
 
    Section 10. Surcharge imposed; returns. 
    (a) An annual surcharge is imposed upon each operator who 
operates a live adult entertainment facility in this State. By 
January 20, 2014, and by January 20 of each year thereafter, 
each operator shall elect to pay the surcharge according to 
either item (1) or item (2) of this subsection.
        (1) An operator who elects to be subject to this item 
    (1) shall pay to the Department a surcharge imposed upon 
    admissions to a live adult entertainment facility operated 
    by the operator in this State in an amount equal to $3 per 
    person admitted to that live adult entertainment facility. 
    This item (1) does not require a live entertainment 
    facility to impose a fee on a customer of the facility. An 
    operator has the discretion to determine the manner in 
    which the facility derives the moneys required to pay the 
    surcharge imposed under this Section.  In the event that an 
    operator has not filed the applicable returns under the 
    Retailers' Occupation Tax Act for a full calendar year 
    prior to any January 20, then such operator shall pay the 
    surcharge under this Act pursuant to this item (1) for 
    moneys owed to the Department subject to this Act for the 
    previous calendar year.
        (2) An operator may, in the alternative, pay to the 
    Department the surcharge as follows:
            (A) If the gross receipts received by the live 
        adult entertainment facility during the preceding 
        calendar year, upon the basis of which a tax is imposed 
        under Section 2 of the Retailers' Occupation Tax Act, 
        are equal or greater than $2,000,000 during the 
        preceding calendar year, and if the operator elects to 
        be subject to this item (2), then the operator shall 
        pay the Department a surcharge of $25,000.
            (B) If the gross receipts received by the live 
        adult entertainment facility during the preceding 
        calendar year, upon the basis of which a tax is imposed 
        under Section 2 of the Retailers' Occupation Tax Act, 
        are equal to or greater than $500,000 but less than 
        $2,000,000 during the preceding calendar year, and if 
        the operator elects to be subject to this item (2), 
        then the operator shall pay to the Department a 
        surcharge of $15,000.
            (C) If the gross receipts received by the live 
        adult entertainment facility during the preceding 
        calendar year, upon the basis of which a tax is imposed 
        under Section 2 of the Retailers' Occupation Tax Act, 
        are less than $500,000 during the preceding calendar 
        year, and if the operator elects to be subject to this 
        item (2), then the operator shall pay the Department a 
        surcharge of $5,000.
    (b) For each live adult entertainment facility paying the 
surcharge as set forth in item (1) of subsection (a) of this 
Section, the operator must file a return electronically as 
provided by the Department and remit payment to the Department 
on an annual basis no later than January 20 covering the 
previous calendar year. Each return made to the Department must 
state the following:
        (1) the name of the operator;
        (2) the address of the live adult entertainment 
    facility and the address of the principal place of business 
    (if that is a different address) of the operator;
        (3) the total number of admissions to the facility in 
    the preceding calendar year; and
        (4) the total amount of surcharge collected in the 
    preceding calendar year.
    Notwithstanding any other provision of this subsection 
concerning the time within which an operator may file his or 
her return, if an operator ceases to operate a live adult 
entertainment facility, then he or she must file a final return 
under this Act with the Department not more than one calendar 
month after discontinuing that business.
    (c) For each live adult entertainment facility paying the 
surcharge as set forth in item (2) of subsection (a)  of this 
Section, the operator must file a return electronically as 
provided by the Department and remit payment to the Department 
on an annual basis no later than January 20 covering the 
previous calendar year. Each return made to the Department must 
state the following:
        (1) the name of the operator;
        (2) the address of the live adult entertainment 
    facility and the address of the principal place of business 
    (if that is a different address) of the operator;
        (3) the gross receipts received by the live adult 
    entertainment facility during the preceding calendar year, 
    upon the basis of which tax is imposed under Section 2 of 
    the Retailers' Occupation Tax Act; and
        (4) the applicable surcharge from Section 10(a)(2) of 
    this Act to be paid by the operator.
    Notwithstanding any other provision of this subsection 
concerning the time within which an operator may file his or 
her return, if an operator ceases to operate a live adult 
entertainment facility, then he or she must file a final return 
under this Act with the Department not more than one calendar 
month after discontinuing that business.
    (d) Beginning January 1, 2014, the Department shall pay all 
proceeds collected from the surcharge imposed under this Act 
into the Sexual Assault Services and Prevention Fund, less 2% 
of those proceeds, which shall be paid into the Tax Compliance 
and Administration Fund in the State treasury from which it 
shall be appropriated to the Department to cover the costs of 
the Department in administering and enforcing the provisions of 
this Act.
 
    Section 15. The Sexual Assault Services and Prevention 
Fund.  
    (a) The Sexual Assault Services and Prevention Fund is 
created as a special fund in the State treasury. From 
appropriations from the Fund, the Department of Human Services 
shall make grants to sexual assault organizations with whom the 
Department has contracts for the purpose of providing 
community-based assistance to victims of sexual assault and for 
activities concerning the prevention of sexual assault. Moneys 
received for the purposes of this Act, including, without 
limitation, surcharge proceeds and gifts, grants, and awards 
from any public or private entity, must be deposited into the 
Fund. Any interest earnings that are attributable to moneys in 
the Fund must be deposited into the Fund.
    (b) Notwithstanding any deposits authorized under 
subsection (d) of Section 10 of this Act, the Fund is not 
subject to sweeps, charge-backs, or any other fiscal or 
budgetary maneuver that would in any way transfer any moneys 
from the Fund into any other fund of the State.
 
    Section 20. Books and records. Every operator electing to 
pay the surcharge pursuant to item (1) of subsection (a) of 
Section 10 of this Act shall  record the admissions of customers 
subject to the surcharge under this Act.
 
    Section 25. Application of Retailers' Occupation Tax 
provisions; Uniform Penalty and Interest Act provisions. All 
the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 
5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13 of the Retailers' 
Occupation Tax Act that are not inconsistent with this Act 
apply, as far as practicable, to the surcharge imposed by this 
Act to the same extent as if those provisions were included in 
this Act. References in the incorporated Sections of the 
Retailers' Occupation Tax Act to retailers, to sellers, or to 
persons engaged in the business of selling tangible personal 
property mean operators.  All provisions of the Uniform Penalty 
and Interest Act which are not inconsistent with this Act shall 
apply.
 
    Section 30. Rules. The Department may adopt and enforce any 
reasonable rule to administer and enforce the surcharge imposed 
by this Act.

 
    Section 40. Review under the Administrative Review Law. The 
circuit court of any county in which a hearing is held has the 
power to review all final administrative decisions of the 
Department in administering the surcharge imposed under this 
Act.  The term "administrative decision" is defined as in 
Section 3-101 of the Code of Civil Procedure.
 
    Section 45. Penalty. Any operator who fails to make a 
return or who makes a fraudulent return  is guilty of a Class 4 
felony.
 
    Section 90. The State Finance Act is amended by adding 
Section 5.811 as follows:
 
    (30 ILCS 105/5.811 new)
    Sec. 5.811. The Sexual Assault Services and Prevention 
Fund.
 
    Section 97. Severability. The provisions of this Act are 
severable under Section 1.31 of the Statute on Statutes.
 
    Section 99. Effective date. This Act takes effect January 
1, 2013.