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Public Act 099-0192


 

Public Act 0192 99TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 099-0192
 
HB2513 EnrolledLRB099 05839 SXM 25883 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Cigarette Tax Act is amended by changing
Sections 4g, 6, 11, and 11c as follows:
 
    (35 ILCS 130/4g)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 4g. Retailer's license. Beginning on January 1, 2016,
no person may engage in business as a retailer of cigarettes in
this State without first having obtained a license from the
Department. Application for license shall be made to the
Department, by electronic means, in a form prescribed by the
Department. Each applicant for a license under this Section
shall furnish to the Department, in an electronic format
established by the Department, the following information:
        (1) the name and address of the applicant;
        (2) the address of the location at which the applicant
    proposes to engage in business as a retailer of cigarettes
    in this State; and
        (3) such other additional information as the
    Department may lawfully require by its rules and
    regulations.
    The annual license fee payable to the Department for each
retailer's license shall be $75. The fee shall be deposited
into the Tax Compliance and Administration Fund and shall be
for the cost of tobacco retail inspection and contraband
tobacco and tobacco smuggling with at least two-thirds of the
money being used for contraband tobacco and tobacco smuggling
operations and enforcement.
    Each applicant for a license shall pay the fee to the
Department at the time of submitting its application for a
license to the Department. The Department shall require an
applicant for a license under this Section to electronically
file and pay the fee.
    A separate annual license fee shall be paid for each place
of business at which a person who is required to procure a
retailer's license under this Section proposes to engage in
business as a retailer in Illinois under this Act.
    The following are ineligible to receive a retailer's
license under this Act:
        (1) a person who has been convicted of a felony related
    to the illegal transportation, sale, or distribution of
    cigarettes, or a tobacco-related felony, under any federal
    or State law, if the Department, after investigation and a
    hearing if requested by the applicant, determines that the
    person has not been sufficiently rehabilitated to warrant
    the public trust; or
        (2) a corporation, if any officer, manager, or director
    thereof, or any stockholder or stockholders owning in the
    aggregate more than 5% of the stock of such corporation,
    would not be eligible to receive a license under this Act
    for any reason.
    The Department, upon receipt of an application and license
fee, in proper form, from a person who is eligible to receive a
retailer's license under this Act, shall issue to such
applicant a license in form as prescribed by the Department.
That license shall permit the applicant to whom it is issued to
engage in business as a retailer under this Act at the place
shown in his or her application. All licenses issued by the
Department under this Section shall be valid for a period not
to exceed one year after issuance unless sooner revoked,
canceled, or suspended as provided in this Act. No license
issued under this Section is transferable or assignable. The
license shall be conspicuously displayed in the place of
business conducted by the licensee in Illinois under such
license. The Department shall not issue a retailer's license to
a retailer unless the retailer is also registered under the
Retailers' Occupation Tax Act. A person who obtains a license
as a retailer who ceases to do business as specified in the
license, or who never commenced business, or who obtains a
distributor's license, or whose license is suspended or
revoked, shall immediately surrender the license to the
Department.
    Any person aggrieved by any decision of the Department
under this Section subsection may, within 30 days after notice
of the decision, protest and request a hearing. Upon receiving
a request for a hearing, the Department shall give written
notice to the person requesting the hearing of the time and
place fixed for the hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person. In
the absence of a protest and request for a hearing within 30
days, the Department's decision shall become final without any
further determination being made or notice given.
(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 
    (35 ILCS 130/6)  (from Ch. 120, par. 453.6)
    (Text of Section before amendment by P.A. 98-1055)
    Sec. 6. Revocation, cancellation, or suspension of
license. The Department may, after notice and hearing as
provided for by this Act, revoke, cancel or suspend the license
of any distributor or secondary distributor for the violation
of any provision of this Act, or for noncompliance with any
provision herein contained, or for any noncompliance with any
lawful rule or regulation promulgated by the Department under
Section 8 of this Act, or because the licensee is determined to
be ineligible for a distributor's license for any one or more
of the reasons provided for in Section 4 of this Act, or
because the licensee is determined to be ineligible for a
secondary distributor's license for any one or more of the
reasons provided for in Section 4c of this Act. However, no
such license shall be revoked, cancelled or suspended, except
after a hearing by the Department with notice to the
distributor or secondary distributor, as aforesaid, and
affording such distributor or secondary distributor a
reasonable opportunity to appear and defend, and any
distributor or secondary distributor aggrieved by any decision
of the Department with respect thereto may have the
determination of the Department judicially reviewed, as herein
provided.
    The Department may revoke, cancel, or suspend the license
of any distributor for a violation of the Tobacco Product
Manufacturers' Escrow Enforcement Act as provided in Section 30
of that Act. The Department may revoke, cancel, or suspend the
license of any secondary distributor for a violation of
subsection (e) of Section 15 of the Tobacco Product
Manufacturers' Escrow Enforcement Act.
    Any distributor or secondary distributor aggrieved by any
decision of the Department under this Section may, within 20
days after notice of the decision, protest and request a
hearing. Upon receiving a request for a hearing, the Department
shall give notice in writing to the distributor or secondary
distributor requesting the hearing that contains a statement of
the charges preferred against the distributor or secondary
distributor and that states the time and place fixed for the
hearing. The Department shall hold the hearing in conformity
with the provisions of this Act and then issue its final
administrative decision in the matter to the distributor or
secondary distributor. In the absence of a protest and request
for a hearing within 20 days, the Department's decision shall
become final without any further determination being made or
notice given.
    No license so revoked, as aforesaid, shall be reissued to
any such distributor or secondary distributor within a period
of 6 months after the date of the final determination of such
revocation. No such license shall be reissued at all so long as
the person who would receive the license is ineligible to
receive a distributor's license under this Act for any one or
more of the reasons provided for in Section 4 of this Act or is
ineligible to receive a secondary distributor's license under
this Act for any one or more of the reasons provided for in
Section 4c of this Act.
    The Department upon complaint filed in the circuit court
may by injunction restrain any person who fails, or refuses, to
comply with any of the provisions of this Act from acting as a
distributor or secondary distributor of cigarettes in this
State.
(Source: P.A. 96-1027, eff. 7-12-10.)
 
    (Text of Section after amendment by P.A. 98-1055)
    Sec. 6. Revocation, cancellation, or suspension of
license. The Department may, after notice and hearing as
provided for by this Act, revoke, cancel or suspend the license
of any distributor, secondary distributor, or retailer for the
violation of any provision of this Act, or for noncompliance
with any provision herein contained, or for any noncompliance
with any lawful rule or regulation promulgated by the
Department under Section 8 of this Act, or because the licensee
is determined to be ineligible for a distributor's license for
any one or more of the reasons provided for in Section 4 of
this Act, or because the licensee is determined to be
ineligible for a secondary distributor's license for any one or
more of the reasons provided for in Section 4c of this Act, or
because the licensee is determined to be ineligible for a
retailer's license for any one or more of the reasons provided
for in Section 4g of this Act. However, no such license shall
be revoked, cancelled or suspended, except after a hearing by
the Department with notice to the distributor, secondary
distributor, or retailer, as aforesaid, and affording such
distributor, secondary distributor, or retailer a reasonable
opportunity to appear and defend, and any distributor,
secondary distributor, or retailer aggrieved by any decision of
the Department with respect thereto may have the determination
of the Department judicially reviewed, as herein provided.
    The Department may revoke, cancel, or suspend the license
of any distributor for a violation of the Tobacco Product
Manufacturers' Escrow Enforcement Act as provided in Section 30
of that Act. The Department may revoke, cancel, or suspend the
license of any secondary distributor for a violation of
subsection (e) of Section 15 of the Tobacco Product
Manufacturers' Escrow Enforcement Act.
    If the retailer has a training program that facilitates
compliance with minimum-age tobacco laws, the Department shall
suspend for 3 days the license of that retailer for a fourth or
subsequent violation of the Prevention of Tobacco Use by Minors
and Sale and Distribution of Tobacco Products Act, as provided
in subsection (a) of Section 2 of that Act. For the purposes of
this Section, any violation of subsection (a) of Section 2 of
the Prevention of Tobacco Use by Minors and Sale and
Distribution of Tobacco Products Act occurring at the
retailer's licensed location during a 24-month period shall be
counted as a violation against the retailer.
    If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 3 days the license of that
retailer for a second violation of the Prevention of Tobacco
Use by Minors and Sale and Distribution of Tobacco Products
Act, as provided in subsection (a-5) of Section 2 of that Act.
    If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 7 days the license of that
retailer for a third violation of the Prevention of Tobacco Use
by Minors and Sale and Distribution of Tobacco Products Act, as
provided in subsection (a-5) of Section 2 of that Act.
    If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 30 days the license of a retailer
for a fourth or subsequent violation of the Prevention of
Tobacco Use by Minors and Sale and Distribution of Tobacco
Products Act, as provided in subsection (a-5) of Section 2 of
that Act.
    A training program that facilitates compliance with
minimum-age tobacco laws must include at least the following
elements: (i) it must explain that only individuals displaying
valid identification demonstrating that they are 18 years of
age or older shall be eligible to purchase cigarettes or
tobacco products and ; (ii) it must explain where a clerk can
check identification for a date of birth; and (iii) it must
explain the penalties that a clerk and retailer are subject to
for violations of the Prevention of Tobacco Use by Minors and
Sale and Distribution of Tobacco Products Act. The training may
be conducted electronically. Each retailer that has a training
program shall require each employee who completes the training
program to sign a form attesting that the employee has received
and completed tobacco training. The form shall be kept in the
employee's file and may be used to provide proof of training.
    Any distributor, secondary distributor, or retailer
aggrieved by any decision of the Department under this Section
may, within 20 days after notice of the decision, protest and
request a hearing. Upon receiving a request for a hearing, the
Department shall give notice in writing to the distributor,
secondary distributor, or retailer requesting the hearing that
contains a statement of the charges preferred against the
distributor, secondary distributor, or retailer and that
states the time and place fixed for the hearing. The Department
shall hold the hearing in conformity with the provisions of
this Act and then issue its final administrative decision in
the matter to the distributor, secondary distributor, or
retailer. In the absence of a protest and request for a hearing
within 20 days, the Department's decision shall become final
without any further determination being made or notice given.
    No license so revoked, as aforesaid, shall be reissued to
any such distributor, secondary distributor, or retailer
within a period of 6 months after the date of the final
determination of such revocation. No such license shall be
reissued at all so long as the person who would receive the
license is ineligible to receive a distributor's license under
this Act for any one or more of the reasons provided for in
Section 4 of this Act, is ineligible to receive a secondary
distributor's license under this Act for any one or more of the
reasons provided for in Section 4c of this Act, or is
determined to be ineligible for a retailer's license under the
Act for any one or more of the reasons provided for in Section
4g of this Act.
    The Department upon complaint filed in the circuit court
may by injunction restrain any person who fails, or refuses, to
comply with any of the provisions of this Act from acting as a
distributor, secondary distributor, or retailer of cigarettes
in this State.
(Source: P.A. 98-1055, eff. 1-1-16.)
 
    (35 ILCS 130/11)  (from Ch. 120, par. 453.11)
    (Text of Section before amendment by P.A. 98-1055)
    Sec. 11. Every distributor of cigarettes, who is required
to procure a license under this Act, shall keep within
Illinois, at his licensed address, complete and accurate
records of cigarettes held, purchased, manufactured, brought
in or caused to be brought in from without the State, and sold,
or otherwise disposed of, and shall preserve and keep within
Illinois at his licensed address all invoices, bills of lading,
sales records, copies of bills of sale, inventory at the close
of each period for which a return is required of all cigarettes
on hand and of all cigarette revenue stamps, both affixed and
unaffixed, and other pertinent papers and documents relating to
the manufacture, purchase, sale or disposition of cigarettes.
All books and records and other papers and documents that are
required by this Act to be kept shall be kept in the English
language, and shall, at all times during the usual business
hours of the day, be subject to inspection by the Department or
its duly authorized agents and employees. The Department may
adopt rules that establish requirements, including record
forms and formats, for records required to be kept and
maintained by taxpayers. For purposes of this Section,
"records" means all data maintained by the taxpayer, including
data on paper, microfilm, microfiche or any type of
machine-sensible data compilation. Those books, records,
papers and documents shall be preserved for a period of at
least 3 years after the date of the documents, or the date of
the entries appearing in the records, unless the Department, in
writing, authorizes their destruction or disposal at an earlier
date. At all times during the usual business hours of the day
any duly authorized agent or employee of the Department may
enter any place of business of the distributor, without a
search warrant, and inspect the premises and the stock or
packages of cigarettes and the vending devices therein
contained, to determine whether any of the provisions of this
Act are being violated. If such agent or employee is denied
free access or is hindered or interfered with in making such
examination as herein provided, the license of the distributor
at such premises shall be subject to revocation by the
Department.
(Source: P.A. 88-480.)
 
    (Text of Section after amendment by P.A. 98-1055)
    Sec. 11. Every distributor of cigarettes, who is required
to procure a license under this Act, shall keep within
Illinois, at his licensed address, complete and accurate
records of cigarettes held, purchased, manufactured, brought
in or caused to be brought in from without the State, and sold,
or otherwise disposed of, and shall preserve and keep within
Illinois at his licensed address all invoices, bills of lading,
sales records, copies of bills of sale, inventory at the close
of each period for which a return is required of all cigarettes
on hand and of all cigarette revenue stamps, both affixed and
unaffixed, and other pertinent papers and documents relating to
the manufacture, purchase, sale or disposition of cigarettes.
Every sales invoice issued by a licensed distributor to a
retailer in this State shall contain the distributor's
cigarette distributor license number unless the distributor
has been granted a waiver by the Department in response to a
written request in cases where (i) the distributor sells
cigarettes only to licensed retailers that are wholly-owned by
the distributor or owned by a wholly-owned subsidiary of the
distributor; (ii) the licensed retailer obtains cigarettes
only from the distributor requesting the waiver; and (iii) the
distributor affixes the tax stamps to the original packages of
cigarettes sold to the licensed retailer. The distributor shall
file a written request with the Department, and, if the
Department determines that the distributor meets the
conditions for a waiver, the Department shall grant the waiver.
All books and records and other papers and documents that are
required by this Act to be kept shall be kept in the English
language, and shall, at all times during the usual business
hours of the day, be subject to inspection by the Department or
its duly authorized agents and employees. The Department may
adopt rules that establish requirements, including record
forms and formats, for records required to be kept and
maintained by taxpayers. For purposes of this Section,
"records" means all data maintained by the taxpayer, including
data on paper, microfilm, microfiche or any type of
machine-sensible data compilation. Those books, records,
papers and documents shall be preserved for a period of at
least 3 years after the date of the documents, or the date of
the entries appearing in the records, unless the Department, in
writing, authorizes their destruction or disposal at an earlier
date. At all times during the usual business hours of the day
any duly authorized agent or employee of the Department may
enter any place of business of the distributor, without a
search warrant, and inspect the premises and the stock or
packages of cigarettes and the vending devices therein
contained, to determine whether any of the provisions of this
Act are being violated. If such agent or employee is denied
free access or is hindered or interfered with in making such
examination as herein provided, the license of the distributor
at such premises shall be subject to revocation by the
Department.
(Source: P.A. 98-1055, eff. 1-1-16.)
 
    (35 ILCS 130/11c)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 11c. Retailers; records. Every retailer who is
required to procure a license under this Act shall keep within
Illinois complete and accurate records of cigarettes
purchased, sold, or otherwise disposed of. It shall be the duty
of every retail licensee to make sales records, copies of bills
of sale, and inventory at the close of each period for which a
report is required of all cigarettes on hand available upon
reasonable notice for the purpose of investigation and control
by the Department. Such records need not be maintained on the
licensed premises, but must be maintained in the State of
Illinois; however, if access is available electronically, the
records may be maintained out of state. However, all original
invoices or copies thereof covering purchases of cigarettes
must be retained on the licensed premises for a period of 90
days after such purchase, unless the Department has granted a
waiver in response to a written request in cases where records
are kept at a central business location within the State of
Illinois or in cases where records that are available
electronically are maintained out of state. The Department may
adopt rules that establish requirements, including record
forms and formats, for records required to be kept and
maintained by the retailer. The Department shall adopt rules
regarding the eligibility for a waiver, revocation of a waiver,
and requirements and standards for maintenance and
accessibility of records located at a central location
out-of-State pursuant to a waiver provided under this Section.
    For purposes of this Section, "records" means all data
maintained by the retailer, including data on paper, microfilm,
microfiche or any type of machine sensible data compilation.
Those books, records, papers, and documents shall be preserved
for a period of at least 3 years after the date of the
documents, or the date of the entries appearing in the records,
unless the Department, in writing, authorizes their
destruction or disposal at an earlier date. At all times during
the usual business hours of the day, any duly authorized agent
or employee of the Department may enter any place of business
of the retailer without a search warrant and may inspect the
premises to determine whether any of the provisions of this Act
are being violated. If such agent or employee is denied free
access or is hindered or interfered with in making such
examination as herein provided, the license of the retailer
shall be subject to suspension or revocation by the Department.
(Source: P.A. 98-1055, eff. 1-1-16.)
 
    Section 10. The Tobacco Products Tax Act of 1995 is amended
by changing Sections 10-21, 10-25, and 10-35 as follows:
 
    (35 ILCS 143/10-21)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 10-21. Retailer's license. Beginning on January 1,
2016, no person may engage in business as a retailer of tobacco
products in this State without first having obtained a license
from the Department. Application for license shall be made to
the Department, by electronic means, in a form prescribed by
the Department. Each applicant for a license under this Section
shall furnish to the Department, in an electronic format
established by the Department, the following information:
        (1) the name and address of the applicant;
        (2) the address of the location at which the applicant
    proposes to engage in business as a retailer of tobacco
    products in this State;
        (3) such other additional information as the
    Department may lawfully require by its rules and
    regulations.
    The annual license fee payable to the Department for each
retailer's license shall be $75. The fee will be deposited into
the Tax Compliance and Administration Fund and shall be used
for the cost of tobacco retail inspection and contraband
tobacco and tobacco smuggling with at least two-thirds of the
money being used for contraband tobacco and tobacco smuggling
operations and enforcement.
    Each applicant for license shall pay such fee to the
Department at the time of submitting its application for
license to the Department. The Department shall require an
applicant for a license under this Section to electronically
file and pay the fee.
    A separate annual license fee shall be paid for each place
of business at which a person who is required to procure a
retailer's license under this Section proposes to engage in
business as a retailer in Illinois under this Act.
    The following are ineligible to receive a retailer's
license under this Act:
        (1) a person who has been convicted of a felony under
    any federal or State law for smuggling cigarettes or
    tobacco products or tobacco tax evasion, if the Department,
    after investigation and a hearing if requested by the
    applicant, determines that such person has not been
    sufficiently rehabilitated to warrant the public trust;
    and
        (2) a corporation, if any officer, manager or director
    thereof, or any stockholder or stockholders owning in the
    aggregate more than 5% of the stock of such corporation,
    would not be eligible to receive a license under this Act
    for any reason.
    The Department, upon receipt of an application and license
fee, in proper form, from a person who is eligible to receive a
retailer's license under this Act, shall issue to such
applicant a license in form as prescribed by the Department,
which license shall permit the applicant to which it is issued
to engage in business as a retailer under this Act at the place
shown in his application. All licenses issued by the Department
under this Section shall be valid for a period not to exceed
one year after issuance unless sooner revoked, canceled or
suspended as provided in this Act. No license issued under this
Section is transferable or assignable. Such license shall be
conspicuously displayed in the place of business conducted by
the licensee in Illinois under such license. A person who
obtains a license as a retailer who ceases to do business as
specified in the license, or who never commenced business, or
who obtains a distributor's license, or whose license is
suspended or revoked, shall immediately surrender the license
to the Department. The Department shall not issue a license to
a retailer unless the retailer is also validly registered under
the Retailers Occupation Tax Act.
    A retailer as defined under this Act need not obtain an
additional license under this Act, but shall be deemed to be
sufficiently licensed by virtue of his being properly licensed
as a retailer under Section 4g of the Cigarette Tax Act.
    Any person aggrieved by any decision of the Department
under this Section subsection may, within 30 days after notice
of the decision, protest and request a hearing. Upon receiving
a request for a hearing, the Department shall give notice to
the person requesting the hearing of the time and place fixed
for the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 days, the
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 
    (35 ILCS 143/10-25)
    (Text of Section before amendment by P.A. 98-1055)
    Sec. 10-25. License actions. The Department may, after
notice and a hearing, revoke, cancel, or suspend the license of
any distributor who violates any of the provisions of this Act.
The notice shall specify the alleged violation or violations
upon which the revocation, cancellation, or suspension
proceeding is based.
    The Department may revoke, cancel, or suspend the license
of any distributor for a violation of the Tobacco Product
Manufacturers' Escrow Enforcement Act as provided in Section 20
of that Act.
    The Department may, by application to any circuit court,
obtain an injunction restraining any person who engages in
business as a distributor of tobacco products without a license
(either because his or her license has been revoked, canceled,
or suspended or because of a failure to obtain a license in the
first instance) from engaging in that business until that
person, as if that person were a new applicant for a license,
complies with all of the conditions, restrictions, and
requirements of Section 10-20 of this Act and qualifies for and
obtains a license. Refusal or neglect to obey the order of the
court may result in punishment for contempt.
(Source: P.A. 92-737, eff. 7-25-02.)
 
    (Text of Section after amendment by P.A. 98-1055)
    Sec. 10-25. License actions.
    (a) The Department may, after notice and a hearing, revoke,
cancel, or suspend the license of any distributor or retailer
who violates any of the provisions of this Act. The notice
shall specify the alleged violation or violations upon which
the revocation, cancellation, or suspension proceeding is
based.
    (b) The Department may revoke, cancel, or suspend the
license of any distributor for a violation of the Tobacco
Product Manufacturers' Escrow Enforcement Act as provided in
Section 20 of that Act.
    (c) If the retailer has a training program that facilitates
compliance with minimum-age tobacco laws, the Department shall
suspend for 3 days the license of that retailer for a fourth or
subsequent violation of the Prevention of Tobacco Use by Minors
and Sale and Distribution of Tobacco Products Act, as provided
in subsection (a) of Section 2 of that Act. For the purposes of
this Section, any violation of subsection (a) of Section 2 of
the Prevention of Tobacco Use by Minors and Sale and
Distribution of Tobacco Products Act occurring at the
retailer's licensed location, during a 24-month period, shall
be counted as a violation against the retailer.
    If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 3 days the license of that
retailer for a second violation of the Prevention of Tobacco
Use by Minors and Sale and Distribution of Tobacco Products
Act, as provided in subsection (a-5) of Section 2 of that Act.
    If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 7 days the license of that
retailer for a third violation of the Prevention of Tobacco Use
by Minors and Sale and Distribution of Tobacco Products Act, as
provided in subsection (a-5) of Section 2 of that Act.
    If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 30 days the license of a retailer
for a fourth or subsequent violation of the Prevention of
Tobacco Use by Minors and Sale and Distribution of Tobacco
Products Act, as provided in subsection (a-5) of Section 2 of
that Act.
    A training program that facilitates compliance with
minimum-age tobacco laws must include at least the following
elements: (i) it must explain that only individuals displaying
valid identification demonstrating that they are 18 years of
age or older shall be eligible to purchase cigarettes or
tobacco products and ; (ii) it must explain where a clerk can
check identification for a date of birth; and (iii) it must
explain the penalties that a clerk and retailer are subject to
for violations of the Prevention of Tobacco Use by Minors and
Sale and Distribution of Tobacco Products Act. The training may
be conducted electronically. Each retailer that has a training
program shall require each employee who completes the training
program to sign a form attesting that the employee has received
and completed tobacco training. The form shall be kept in the
employee's file and may be used to provide proof of training.
    (d) The Department may, by application to any circuit
court, obtain an injunction restraining any person who engages
in business as a distributor of tobacco products without a
license (either because his or her license has been revoked,
canceled, or suspended or because of a failure to obtain a
license in the first instance) from engaging in that business
until that person, as if that person were a new applicant for a
license, complies with all of the conditions, restrictions, and
requirements of Section 10-20 of this Act and qualifies for and
obtains a license. Refusal or neglect to obey the order of the
court may result in punishment for contempt.
(Source: P.A. 98-1055, eff. 1-1-16.)
 
    (35 ILCS 143/10-35)
    (Text of Section before amendment by P.A. 98-1055)
    Sec. 10-35. Record keeping. Every distributor, as defined
in Section 10-5, shall keep complete and accurate records of
tobacco products held, purchased, manufactured, brought in or
caused to be brought in from without the State, and tobacco
products sold, or otherwise disposed of, and shall preserve and
keep all invoices, bills of lading, sales records, and copies
of bills of sale, the wholesale price for tobacco products sold
or otherwise disposed of, an inventory of tobacco products
prepared as of December 31 of each year or as of the last day of
the distributor's fiscal year if he or she files federal income
tax returns on the basis of a fiscal year, and other pertinent
papers and documents relating to the manufacture, purchase,
sale, or disposition of tobacco products. Books, records,
papers, and documents that are required by this Act to be kept
shall, at all times during the usual business hours of the day,
be subject to inspection by the Department or its duly
authorized agents and employees. The books, records, papers,
and documents for any period with respect to which the
Department is authorized to issue a notice of tax liability
shall be preserved until the expiration of that period.
(Source: P.A. 89-21, eff. 6-6-95.)
 
    (Text of Section after amendment by P.A. 98-1055)
    Sec. 10-35. Record keeping.
    (a) Every distributor, as defined in Section 10-5, shall
keep complete and accurate records of tobacco products held,
purchased, manufactured, brought in or caused to be brought in
from without the State, and tobacco products sold, or otherwise
disposed of, and shall preserve and keep all invoices, bills of
lading, sales records, and copies of bills of sale, the
wholesale price for tobacco products sold or otherwise disposed
of, an inventory of tobacco products prepared as of December 31
of each year or as of the last day of the distributor's fiscal
year if he or she files federal income tax returns on the basis
of a fiscal year, and other pertinent papers and documents
relating to the manufacture, purchase, sale, or disposition of
tobacco products. Every sales invoice issued by a licensed
distributor to a retailer in this State shall contain the
distributor's Tobacco Products License number unless the
distributor has been granted a waiver by the Department in
response to a written request in cases where (i) the
distributor sells little cigars or other tobacco products only
to licensed retailers that are wholly-owned by the distributor
or owned by a wholly-owned subsidiary of the distributor; (ii)
the licensed retailer obtains little cigars or other tobacco
products only from the distributor requesting the waiver; and
(iii) the distributor affixes the tax stamps to the original
packages of little cigars or has or will pay the tax on the
other tobacco products sold to the licensed retailer. The
distributor shall file a written request with the Department,
and, if the Department determines that the distributor meets
the conditions for a waiver, the Department shall grant the
waiver.
    (b) Every retailer, as defined in Section 10-5, shall keep
complete and accurate records of tobacco products held,
purchased, sold, or otherwise disposed of, and shall preserve
and keep all invoices, bills of lading, sales records, and
copies of bills of sale, returns and other pertinent papers and
documents relating to the purchase, sale, or disposition of
tobacco products. Such records need not be maintained on the
licensed premises, but must be maintained in the State of
Illinois; however, if access is available electronically, the
records may be maintained out of state. However, all original
invoices or copies thereof covering purchases of tobacco
products must be retained on the licensed premises for a period
of 90 days after such purchase, unless the Department has
granted a waiver in response to a written request in cases
where records are kept at a central business location within
the State of Illinois or in cases where records that are
available electronically are maintained out of state. The
Department shall adopt rules regarding the eligibility for a
waiver, revocation of a waiver, and requirements and standards
for maintenance and accessibility of records located at a
central location out-of-State pursuant to a waiver provided
under this Section.
    (c) Books, records, papers, and documents that are required
by this Act to be kept shall, at all times during the usual
business hours of the day, be subject to inspection by the
Department or its duly authorized agents and employees. The
books, records, papers, and documents for any period with
respect to which the Department is authorized to issue a notice
of tax liability shall be preserved until the expiration of
that period.
(Source: P.A. 98-1055, eff. 1-1-16.)
 
    Section 15. The Prevention of Tobacco Use by Minors and
Sale and Distribution of Tobacco Products Act is amended by
changing Section 2 as follows:
 
    (720 ILCS 675/2)  (from Ch. 23, par. 2358)
    (Text of Section before amendment by P.A. 98-1055)
    Sec. 2. Penalties.
    (a) Any person who violates subsection (a), (a-5), or (a-6)
of Section 1 or Section 1.5 of this Act is guilty of a petty
offense and for the first offense shall be fined $200, $400 for
the second offense in a 12-month period, and $600 for the third
or any subsequent offense in a 12-month period.
    (b) If a minor violates subsection (a-7) of Section 1 he or
she is guilty of a petty offense and the court may impose a
sentence of 15 hours of community service or a fine of $25 for
a first violation.
    (c) A second violation by a minor of subsection (a-7) of
Section 1 that occurs within 12 months after the first
violation is punishable by a fine of $50 and 25 hours of
community service.
    (d) A third or subsequent violation by a minor of
subsection (a-7) of Section 1 that occurs within 12 months
after the first violation is punishable by a $100 fine and 30
hours of community service.
    (e) Any second or subsequent violation not within the
12-month time period after the first violation is punishable as
provided for a first violation.
    (f) If a minor is convicted of or placed on supervision for
a violation of subsection (a-7) of Section 1, the court may, in
its discretion, and upon recommendation by the State's
Attorney, order that minor and his or her parents or legal
guardian to attend a smoker's education or youth diversion
program if that program is available in the jurisdiction where
the offender resides. Attendance at a smoker's education or
youth diversion program shall be time-credited against any
community service time imposed for any first violation of
subsection (a-7) of Section 1. In addition to any other penalty
that the court may impose for a violation of subsection (a-7)
of Section 1, the court, upon request by the State's Attorney,
may in its discretion require the offender to remit a fee for
his or her attendance at a smoker's education or youth
diversion program.
    (g) For purposes of this Section, "smoker's education
program" or "youth diversion program" includes, but is not
limited to, a seminar designed to educate a person on the
physical and psychological effects of smoking tobacco products
and the health consequences of smoking tobacco products that
can be conducted with a locality's youth diversion program.
    (h) All moneys collected as fines for violations of
subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
distributed in the following manner:
        (1) one-half of each fine shall be distributed to the
    unit of local government or other entity that successfully
    prosecuted the offender; and
        (2) one-half shall be remitted to the State to be used
    for enforcing this Act.
(Source: P.A. 98-350, eff. 1-1-14.)
 
    (Text of Section after amendment by P.A. 98-1055)
    Sec. 2. Penalties.
    (a) Any person who violates subsection (a) or (a-5) of
Section 1 or Section 1.5 of this Act is guilty of a petty
offense. For the first offense in a 24-month period, the person
shall be fined $200 if his or her employer has a training
program that facilitates compliance with minimum-age tobacco
laws. For the second offense in a 24-month period, the person
shall be fined $400 if his or her employer has a training
program that facilitates compliance with minimum-age tobacco
laws. For the third offense in a 24-month period, the person
shall be fined $600 if his or her employer has a training
program that facilitates compliance with minimum-age tobacco
laws. For the fourth or subsequent offense in a 24-month
period, the person shall be fined $800 if his or her employer
has a training program that facilitates compliance with
minimum-age tobacco laws. For the purposes of this subsection,
the 24-month period shall begin with the person's first
violation of the Act. The penalties in this subsection are in
addition to any other penalties prescribed under the Cigarette
Tax Act and the Tobacco Products Tax Act of 1995.
    (a-5) Any person who violates subsection (a) or (a-5) of
Section 1 or Section 1.5 of this Act is guilty of a petty
offense. For the first offense, the retailer shall be fined
$200 if it does not have a training program that facilitates
compliance with minimum-age tobacco laws. For the second
offense, the retailer shall be fined $400 if it does not have a
training program that facilitates compliance with minimum-age
tobacco laws. For the third offense, the retailer shall be
fined $600 if it does not have a training program that
facilitates compliance with minimum-age tobacco laws. For the
fourth or subsequent offense in a 24-month period, the retailer
shall be fined $800 if it does not have a training program that
facilitates compliance with minimum-age tobacco laws. For the
purposes of this subsection, the 24-month period shall begin
with the person's first violation of the Act. The penalties in
this subsection are in addition to any other penalties
prescribed under the Cigarette Tax Act and the Tobacco Products
Tax Act of 1995.
    (a-6) For the purpose of this Act, a training program that
facilitates compliance with minimum-age tobacco laws must
include at least the following elements: (i) it must explain
that only individuals displaying valid identification
demonstrating that they are 18 years of age or older shall be
eligible to purchase cigarettes or tobacco products and ; (ii)
it must explain where a clerk can check identification for a
date of birth; and (iii) it must explain the penalties that a
clerk and retailer are subject to for violations of the
Prevention of Tobacco Use by Minors and Sale and Distribution
of Tobacco Products Act. The training may be conducted
electronically. Each retailer that has a training program shall
require each employee who completes the training program to
sign a form attesting that the employee has received and
completed tobacco training. The form shall be kept in the
employee's file and may be used to provide proof of training.
    (b) If a minor violates subsection (a-7) of Section 1 he or
she is guilty of a petty offense and the court may impose a
sentence of 25 hours of community service and a fine of $50 for
a first violation. If a minor violates subsection (a-6) of
Section 1, he or she is guilty of a Class A misdemeanor.
    (c) A second violation by a minor of subsection (a-7) of
Section 1 that occurs within 12 months after the first
violation is punishable by a fine of $75 and 50 hours of
community service.
    (d) A third or subsequent violation by a minor of
subsection (a-7) of Section 1 that occurs within 12 months
after the first violation is punishable by a $200 fine and 50
hours of community service.
    (e) Any second or subsequent violation not within the
12-month time period after the first violation is punishable as
provided for a first violation.
    (f) If a minor is convicted of or placed on supervision for
a violation of subsection (a-6) or (a-7) of Section 1, the
court may, in its discretion, and upon recommendation by the
State's Attorney, order that minor and his or her parents or
legal guardian to attend a smoker's education or youth
diversion program if that program is available in the
jurisdiction where the offender resides. Attendance at a
smoker's education or youth diversion program shall be
time-credited against any community service time imposed for
any first violation of subsection (a-7) of Section 1. In
addition to any other penalty that the court may impose for a
violation of subsection (a-7) of Section 1, the court, upon
request by the State's Attorney, may in its discretion require
the offender to remit a fee for his or her attendance at a
smoker's education or youth diversion program.
    (g) For purposes of this Section, "smoker's education
program" or "youth diversion program" includes, but is not
limited to, a seminar designed to educate a person on the
physical and psychological effects of smoking tobacco products
and the health consequences of smoking tobacco products that
can be conducted with a locality's youth diversion program.
    (h) All moneys collected as fines for violations of
subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
distributed in the following manner:
        (1) one-half of each fine shall be distributed to the
    unit of local government or other entity that successfully
    prosecuted the offender; and
        (2) one-half shall be remitted to the State to be used
    for enforcing this Act.
    Any violation of subsection (a) or (a-5) of Section 1 or
Section 1.5 shall be reported to the Department of Revenue
within 7 business days.
(Source: P.A. 98-350, eff. 1-1-14; 98-1055, eff. 1-1-16.)
 
    Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.

Effective Date: 1/1/2016