98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3138
 
Introduced , by Rep. Derrick Smith
 
SYNOPSIS AS INTRODUCED:
 

 
815 ILCS 5/18.2 new

     Amends the Illinois Securities Law of 1953. Provides that the Secretary of State may impose and collect a fee on the transfer of securities and derivative financial instruments.  Provides a list of covered transactions and sets the fee rate to be collected by the Secretary.
  


LRB098 09144 HLH 39282 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
HB3138LRB098 09144 HLH 39282 b


  
1    AN ACT concerning business.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Securities Law of 1953 is amended  
5by adding Section 18.2 as follows:
 
6    (815 ILCS 5/18.2 new)
7    Sec. 18.2. Fee on trading transactions.
8    (a) Definitions.  For purposes of this Section:
9    "Derivative financial instrument" means any option, 
10forward contract, futures contract, notional principal 
11contract, or any similar financial instrument. 
12    "Specified base amount" means the fair market value of the 
13security at the time of the covered transaction. 
14    (b) In addition to any other fee that the Secretary of 
15State may impose and collect pursuant to the authority 
16contained in this Act, beginning on January 1, 2014 the 
17Secretary of State shall also collect a fee on the transfer of 
18ownership in each covered transaction with respect to any 
19security.
20    (c) Rate of fee. The fee imposed under subsection (b) of 
21this Section with respect to any covered transaction shall be 
22$0.10 of the specified base amount with respect to the covered 
23transaction.
 
 
HB3138- 2 -LRB098 09144 HLH 39282 b

1    (d) Covered transactions:
2        (1) except as provided in item (2) of this subsection, 
3    any purchase if that purchase occurs or is cleared on a 
4    facility located in Illinois; and 
5        (2) any transaction with respect to a security 
6    described in item (4), (5), or (6) of subsection (e) of 
7    this Section if that security is traded or cleared on a 
8    facility located in Illinois. 
9    (e) "Security" means:
10        (1) any share of stock in a corporation; 
11        (2) any partnership or beneficial ownership interest 
12    in a partnership or trust; 
13        (3) any note, bond, debenture, or other evidence of 
14    indebtedness, other than a State or local bond the interest 
15    of which is a excluded from gross income under Section 
16    103(a) of the Internal Revenue Code; 
17        (4) any evidence of an interest in, or a derivative 
18    financial instrument with respect to, any security or 
19    securities described above; 
20        (5) any derivative financial instrument with respect 
21    to any currency or commodity including notional principal 
22    contracts; and 
23        (6) any other derivative financial instrument any 
24    payment with respect to which is calculated by reference to 
25    any specified index.