This is not a clear cut thing. My colleagues in California AND New York completely blew a gasket when they figured out I actually used cracked sections in my seismic design of our big project in Las Vegas.
Supposedly everyone in a seismic zone ignores cracked sections and uses 0.7Ig. This includes our peer reviewer (Saiful Bouquet- the "AUTHORITY" on seismic design despite us being the EOR on the most recent tallest buildings in the world.. work including 101 Taipei, Petronas Towers, Burj Dubai, Soldier Field, 1180 Peachtree (great website btw), 181 West Madison, Shanghai Plaza 66 etc..)