Full Text of SB0349 96th General Assembly
SB0349ham002 96TH GENERAL ASSEMBLY
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Rep. Frank J. Mautino
Filed: 6/23/2009
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| AMENDMENT TO SENATE BILL 349
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| AMENDMENT NO. ______. Amend Senate Bill 349, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. If and only if House Bill 255 of the 96th | 6 |
| General Assembly (as amended by Senate Amendments Nos. 1 and 3) | 7 |
| becomes law and takes effect, then the Video Gaming Act is | 8 |
| amended by changing Sections 25 and 45 and by adding Sections | 9 |
| 26, 78, and 85 as follows: | 10 |
| (09600HB0255sam001, Sec. 25)
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| Sec. 25. Restriction of licensees.
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| (a) Manufacturer. A person may not be licensed as a | 13 |
| manufacturer of a
video gaming terminal in Illinois unless the | 14 |
| person has a valid
manufacturer's license issued
under this | 15 |
| Act. A manufacturer may only sell video gaming terminals for | 16 |
| use
in Illinois to
persons having a valid distributor's |
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| license.
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| (b) Distributor. A person may not sell, distribute, or | 3 |
| lease
or market a video gaming terminal in Illinois unless the | 4 |
| person has a valid
distributor's
license issued under this Act. | 5 |
| A distributor may only sell video gaming
terminals for use in
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| Illinois to persons having a valid distributor's or terminal | 7 |
| operator's
license.
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| (c) Terminal operator. A person may not own, maintain, or | 9 |
| place a video gaming terminal unless he has a valid terminal | 10 |
| operator's
license issued
under this Act. A terminal operator | 11 |
| may only place video gaming terminals for
use in
Illinois in | 12 |
| licensed establishments, licensed truck stop establishments, | 13 |
| licensed fraternal establishments,
and
licensed veterans | 14 |
| establishments.
No terminal operator may give anything of | 15 |
| value, including but not limited to
a loan or financing | 16 |
| arrangement, to a licensed establishment, licensed truck stop | 17 |
| establishment,
licensed fraternal establishment, or licensed | 18 |
| veterans establishment as
any incentive or inducement to locate | 19 |
| video terminals in that establishment.
Of the after-tax profits
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| from a video gaming terminal, 50% shall be paid to the terminal
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| operator and 50% shall be paid to the licensed establishment, | 22 |
| licensed truck stop establishment,
licensed fraternal | 23 |
| establishment, or
licensed veterans establishment , | 24 |
| nothwithstanding any agreement to the contrary .
No terminal
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| operator may own or have a substantial interest in more than 5% | 26 |
| of the video
gaming terminals licensed in this State. A video |
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| terminal operator that violates one or more requirements of | 2 |
| this subsection is guilty of a Class 4 felony and is subject to | 3 |
| termination of his or her license by the Board.
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| (d) Licensed technician. A person may not service, | 5 |
| maintain, or repair a
video gaming terminal
in this State | 6 |
| unless he or she (1) has a valid technician's license issued
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| under this Act, (2) is a terminal operator, or (3) is employed | 8 |
| by a terminal
operator, distributor, or manufacturer.
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| (d-5) Licensed terminal handler. No person, including, but | 10 |
| not limited to, an employee or independent contractor working | 11 |
| for a manufacturer, distributor, supplier, technician, or | 12 |
| terminal operator licensed pursuant to this Act, shall have | 13 |
| possession or control of a video gaming terminal or access to | 14 |
| the inner workings of a video gaming terminal, unless that | 15 |
| person possesses a valid terminal handler's license issued | 16 |
| under this Act. | 17 |
| (e) Licensed establishment. No video gaming terminal may be | 18 |
| placed in any licensed establishment, licensed veterans | 19 |
| establishment, licensed truck stop establishment,
or licensed | 20 |
| fraternal establishment
unless the owner
or agent of the owner | 21 |
| of the licensed establishment, licensed veterans | 22 |
| establishment, licensed truck stop establishment, or licensed
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| fraternal establishment has entered into a
written use | 24 |
| agreement with the terminal operator for placement of the
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| terminals. A copy of the use agreement shall be on file in the | 26 |
| terminal
operator's place of business and available for |
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| inspection by individuals
authorized by the Board. A licensed | 2 |
| establishment, licensed truck stop establishment, licensed | 3 |
| veterans establishment,
or
licensed
fraternal
establishment | 4 |
| may operate up to 5 video gaming terminals on its premises at | 5 |
| any
time , unless the Board authorizes a greater number .
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| (f) (Blank) Residency requirement. Each licensed | 7 |
| distributor and terminal
operator
must be an Illinois
resident. | 8 |
| However, if an out of state distributor or terminal operator
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| has performed its respective business
within Illinois for at | 10 |
| least 48 months prior to the effective date of this
Act, the | 11 |
| out of state person may be eligible for
licensing under this | 12 |
| Act, upon application to and approval of the Board .
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| (g) Financial interest restrictions.
As used in this Act, | 14 |
| "substantial interest" in a partnership, a corporation, an
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| organization, an association, or a business means:
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| (A) When, with respect to a sole proprietorship, an | 17 |
| individual or
his or her spouse owns, operates, | 18 |
| manages, or conducts, directly
or indirectly, the | 19 |
| organization, association, or business, or any part | 20 |
| thereof;
or
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| (B) When, with respect to a partnership, the | 22 |
| individual or his or
her spouse shares in any of the | 23 |
| profits, or potential profits,
of the partnership | 24 |
| activities; or
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| (C) When, with respect to a corporation, an | 26 |
| individual or his or her
spouse is an officer or |
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| director, or the individual or his or her spouse is a | 2 |
| holder, directly or beneficially, of 5% or more of any | 3 |
| class
of stock of the corporation; or
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| (D) When, with respect to an organization not | 5 |
| covered in (A), (B) or
(C) above, an individual or his | 6 |
| or her spouse is an officer or manages the
business | 7 |
| affairs, or the individual or his or her spouse is the
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| owner of or otherwise controls 10% or more of the | 9 |
| assets of the organization;
or
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| (E) When an individual or his or her spouse | 11 |
| furnishes
5% or more of the capital, whether in cash, | 12 |
| goods, or services, for the
operation of any business, | 13 |
| association, or organization during any calendar
year.
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| (h) Location restriction. A licensed establishment, | 15 |
| licensed truck stop establishment, licensed
fraternal
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| establishment, or licensed veterans establishment that is (i) | 17 |
| located within 1,000
feet of a facility operated by an | 18 |
| organizational licensee, an intertrack wagering licensee, or | 19 |
| an intertrack wagering location licensee licensed under the | 20 |
| Illinois Horse Racing Act of 1975 , or the home dock of a | 21 |
| riverboat licensed under the Riverboat
Gambling Act or (ii) | 22 |
| located with a 100 feet of , a school, or a place of worship | 23 |
| under the Religious Corporation Act , is ineligible to operate a | 24 |
| video gaming terminal.
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| (i) The provisions of the Illinois Antitrust Act are fully | 26 |
| and equally applicable to the activities of any licensee under |
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| this Act. | 2 |
| (Source: 09600HB0255sam001, Sec. 25.) | 3 |
| (09600HB0255sam001, Sec. 26 new)
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| Sec. 26. Residency requirement. Each licensed distributor | 5 |
| and terminal
operator
must be an Illinois
resident. However, if | 6 |
| an out-of-state distributor or terminal operator
has performed | 7 |
| its respective business
within Illinois for at least 48 months | 8 |
| prior to the effective date of this
Act, the out-of-state | 9 |
| person may be eligible for
licensing under this Act, upon | 10 |
| application to and approval of the Board. The Board shall adopt | 11 |
| rules to implement this Section. | 12 |
| (09600HB0255sam001, Sec. 45)
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| Sec. 45. Issuance of license.
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| (a) The burden is upon each applicant to
demonstrate his | 15 |
| suitability for licensure. Each video gaming terminal
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| manufacturer, distributor, supplier, operator, licensed | 17 |
| establishment, licensed truck stop establishment, licensed
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| fraternal
establishment, and licensed veterans establishment | 19 |
| shall be
licensed by the Board.
The Board may issue or deny a | 20 |
| license under this Act to any person pursuant to the same | 21 |
| criteria set forth in Section 9 of the Riverboat Gambling Act.
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| (b) A non-refundable application fee shall be paid at the | 23 |
| time an
application for a license is filed with the Board in | 24 |
| the following amounts:
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| (1) Manufacturer ..........................$5,000
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| (2) Distributor ...........................$5,000
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| (3) Terminal operator .....................$5,000
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| (4) Supplier ..............................$2,500
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| (5) Technician ...................................$100 | 6 |
| (c) (Blank). | 7 |
| (d) Each licensed distributor, terminal operator, or | 8 |
| person with a
substantial interest in a distributor or terminal | 9 |
| operator must have
resided in Illinois for at least 24 months | 10 |
| prior to application unless he
or she has performed his or her | 11 |
| respective business in Illinois for at least 48
months prior
to | 12 |
| the effective date of this Act. The Board shall establish an
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| annual fee for each license not to exceed the following: | 14 |
| (1) Manufacturer .........................$10,000
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| (2) Distributor ..........................$10,000
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| (3) Terminal operator .....................$5,000
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| (4) Supplier ..............................$2,000
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| (5) Technician ..............................$100
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| (6) Licensed establishment, licensed truck stop
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| establishment, licensed fraternal establishment,
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| or licensed veterans establishment ..............$100
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| (7) Video gaming terminal ........................$100
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| (Source: 09600HB0255sam001, Sec. 45.) | 24 |
| (09600HB0255sam001, Sec. 78 new)
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| Sec. 78. Authority of the Illinois Gaming Board. The Board |
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| shall have jurisdiction over and shall supervise all gaming | 2 |
| operations governed by this Act. The Board shall have all | 3 |
| powers necessary and proper to fully and effectively execute | 4 |
| the provisions of this Act, including, but not limited to, the | 5 |
| following: | 6 |
| (1) To investigate applicants and determine the | 7 |
| eligibility of applicants for licenses and to select among | 8 |
| competing applicants the applicants which best serve the | 9 |
| interests of the citizens of Illinois. | 10 |
| (2) To have jurisdiction and supervision over all video | 11 |
| gaming operations in this State and all persons in | 12 |
| establishments where video gaming operations are | 13 |
| conducted. | 14 |
| (3) To adopt rules for the purpose of administering the | 15 |
| provisions of this Act and to prescribe rules, regulations, | 16 |
| and conditions under which all video gaming in the State | 17 |
| shall be conducted. Such rules and regulations are to | 18 |
| provide for the prevention of practices detrimental to the | 19 |
| public interest and for the best interests of video gaming, | 20 |
| including rules and regulations regarding the inspection | 21 |
| of such establishments and the review of any permits or | 22 |
| licenses necessary to operate an establishment under any | 23 |
| laws or regulations applicable to establishments and to | 24 |
| impose penalties for violations this Act and its rules.
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| (09600HB0255sam001, Sec. 85 new)
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| Sec. 85. Severability. The provisions of the Video Gaming | 2 |
| Act are severable pursuant to Section 1.31 of the Statute on | 3 |
| Statutes.
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| Section 10. If and only if House Bill 255 of the 96th | 5 |
| General Assembly (as amended by Senate Amendments Nos. 1 and 3) | 6 |
| becomes law and takes effect, then the Liquor Control Act of | 7 |
| 1934 is amended by changing Section 8-1 as follows:
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| (235 ILCS 5/8-1) (from Ch. 43, par. 158)
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| Sec. 8-1.
A tax is imposed upon the privilege of engaging | 10 |
| in business as a
manufacturer or as an importing distributor of | 11 |
| alcoholic liquor other than beer
at the rate of $0.185 per | 12 |
| gallon until August 1, 2009 and $0.231 per gallon beginning | 13 |
| August 1, 2009 for cider containing not less than
0.5% alcohol | 14 |
| by volume nor more than 7% alcohol by volume, $0.73
per gallon | 15 |
| until August 1, 2009 and $1.39 per gallon beginning August 1, | 16 |
| 2009 for wine other than
cider containing less than 7% alcohol | 17 |
| by volume, and $4.50
per gallon until August 1, 2009 and $8.55 | 18 |
| per gallon beginning August 1, 2009 on alcohol and spirits | 19 |
| manufactured and sold or used by such
manufacturer, or as agent | 20 |
| for any other person, or sold or used by such
importing | 21 |
| distributor, or as agent for any other person. A tax is imposed
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| upon the privilege of engaging in business as a manufacturer of | 23 |
| beer or as an
importing distributor of beer at the rate of | 24 |
| $0.185 per gallon until August 1, 2009 and $0.231 per gallon |
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| beginning August 1, 2009 on
all beer manufactured and sold or | 2 |
| used by such manufacturer, or as agent for
any other person, or | 3 |
| sold or used by such importing distributor, or as agent
for any | 4 |
| other person. Any brewer manufacturing beer in this State shall | 5 |
| be
entitled to and given a credit or refund of 75% of the tax | 6 |
| imposed on each
gallon of beer up to 4.9 million gallons per | 7 |
| year in any given calendar year
for tax paid or payable on beer | 8 |
| produced and sold in the State of Illinois.
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| For the purpose of this Section, "cider" means any | 10 |
| alcoholic beverage
obtained by the alcohol fermentation of the | 11 |
| juice of apples or pears
including, but not limited to, | 12 |
| flavored, sparkling, or carbonated cider.
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| The credit or refund created by this Act shall apply to all | 14 |
| beer taxes
in the calendar years 1982 through 1986.
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| The increases made by this amendatory Act of the 91st | 16 |
| General Assembly in
the rates of taxes imposed under this | 17 |
| Section shall apply beginning on July
1, 1999.
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| A tax at the rate of 1˘ per gallon on beer and 48˘ per | 19 |
| gallon on
alcohol and spirits is also imposed upon the | 20 |
| privilege of engaging in
business as a retailer or as a | 21 |
| distributor who is not also an importing
distributor with | 22 |
| respect to all beer and all alcohol and spirits owned
or | 23 |
| possessed by such retailer or distributor when this amendatory | 24 |
| Act of
1969 becomes effective, and with respect to which the | 25 |
| additional tax
imposed by this amendatory Act upon | 26 |
| manufacturers and importing
distributors does not apply. |
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| Retailers and distributors who are subject
to the additional | 2 |
| tax imposed by this paragraph of this Section shall be
required | 3 |
| to inventory such alcoholic liquor and to pay this additional
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| tax in a manner prescribed by the Department.
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| The provisions of this Section shall be construed to apply | 6 |
| to any
importing distributor engaging in business in this | 7 |
| State, whether
licensed or not.
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| However, such tax is not imposed upon any such business as | 9 |
| to any
alcoholic liquor shipped outside Illinois by an Illinois | 10 |
| licensed
manufacturer or importing distributor, nor as to any | 11 |
| alcoholic liquor
delivered in Illinois by an Illinois licensed | 12 |
| manufacturer or importing
distributor to a purchaser for | 13 |
| immediate transportation by the purchaser
to another state into | 14 |
| which the purchaser has a legal right, under the
laws of such | 15 |
| state, to import such alcoholic liquor, nor as to any
alcoholic | 16 |
| liquor other than beer sold by one Illinois licensed
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| manufacturer or importing distributor to another Illinois | 18 |
| licensed
manufacturer or importing distributor to the extent to | 19 |
| which the sale of
alcoholic liquor other than beer by one | 20 |
| Illinois licensed manufacturer
or importing distributor to | 21 |
| another Illinois licensed manufacturer or
importing | 22 |
| distributor is authorized by the licensing provisions of this
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| Act, nor to alcoholic liquor whether manufactured in or | 24 |
| imported into
this State when sold to a "non-beverage user" | 25 |
| licensed by the State for
use in the manufacture of any of the | 26 |
| following when they are unfit for
beverage purposes:
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| Patent and proprietary medicines and medicinal, | 2 |
| antiseptic, culinary
and toilet preparations;
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| Flavoring extracts and syrups and food products;
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| Scientific, industrial and chemical products, excepting | 5 |
| denatured
alcohol;
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| Or for scientific, chemical, experimental or mechanical | 7 |
| purposes;
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| Nor is the tax imposed upon the privilege of engaging in | 9 |
| any business
in interstate commerce or otherwise, which | 10 |
| business may not, under the
Constitution and Statutes of the | 11 |
| United States, be made the subject of
taxation by this State.
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| The tax herein imposed shall be in addition to all other | 13 |
| occupation
or privilege taxes imposed by the State of Illinois | 14 |
| or political
subdivision thereof.
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| If any alcoholic liquor manufactured in or imported into | 16 |
| this State
is sold to a licensed manufacturer or importing | 17 |
| distributor by a
licensed manufacturer or importing | 18 |
| distributor to be used solely as an
ingredient in the | 19 |
| manufacture of any beverage for human consumption, the
tax | 20 |
| imposed upon such purchasing manufacturer or importing | 21 |
| distributor
shall be reduced by the amount of the taxes which | 22 |
| have been paid by the
selling manufacturer or importing | 23 |
| distributor under this Act as to such
alcoholic liquor so used | 24 |
| to the Department of Revenue.
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| If any person received any alcoholic liquors from a | 26 |
| manufacturer or
importing distributor, with respect to which |
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| alcoholic liquors no tax is
imposed under this Article, and | 2 |
| such alcoholic liquor shall thereafter
be disposed of in such | 3 |
| manner or under such circumstances as may cause
the same to | 4 |
| become the base for the tax imposed by this Article, such
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| person shall make the same reports and returns, pay the same | 6 |
| taxes and
be subject to all other provisions of this Article | 7 |
| relating to
manufacturers and importing distributors.
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| Nothing in this Article shall be construed to require the | 9 |
| payment to
the Department of the taxes imposed by this Article | 10 |
| more than once with
respect to any quantity of alcoholic liquor | 11 |
| sold or used within this
State.
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| No tax is imposed by this Act on sales of alcoholic liquor | 13 |
| by
Illinois licensed foreign importers to Illinois licensed | 14 |
| importing
distributors.
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| All of the proceeds of the additional tax imposed by this | 16 |
| amendatory Act of the 96th General Assembly shall be deposited | 17 |
| by the Department into the Capital Projects Fund. The remainder | 18 |
| of the tax imposed by this Act shall be deposited by the | 19 |
| Department into the General Revenue Fund. | 20 |
| The provisions of this Section are severable under Section | 21 |
| 1.31 of the Statute on Statutes. | 22 |
| (Source: 09600HB0255sam001.)
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| Section 99. Effective date. This Act takes effect July 1, | 24 |
| 2009.".
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