Illinois General Assembly - Full Text of HB2494
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Full Text of HB2494  98th General Assembly

HB2494enr 98TH GENERAL ASSEMBLY

  
  
  

 


 
HB2494 EnrolledLRB098 08122 JLS 38213 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-380 as follows:
 
7    (20 ILCS 2505/2505-380)  (was 20 ILCS 2505/39b47)
8    Sec. 2505-380. Revocation of or refusal to issue or reissue
9a certificate of registration, permit, or license.
10    (a) The Department has the power, after notice and an
11opportunity for a hearing, to revoke a certificate of
12registration, permit, or license issued by the Department if
13the holder of the certificate of registration, permit, or
14license fails to file a return, or to pay the tax, fee,
15penalty, or interest shown in a filed return, or to pay any
16final assessment of tax, fee, penalty, or interest, as required
17by the tax or fee Act under which the certificate of
18registration, permit, or license is required or any other tax
19or fee Act administered by the Department.
20    (b) The Department may refuse to issue, reissue, or renew a
21certificate of registration, permit, or license authorized to
22be issued by the Department if a person who is named as the
23owner, a partner, a corporate officer, or, in the case of a

 

 

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1limited liability company, a manager or member, of the
2applicant on the application for the certificate of
3registration, permit or license, is or has been named as the
4owner, a partner, a corporate officer, or in the case of a
5limited liability company, a manager or member, on the
6application for the certificate of registration, permit, or
7license of a person that is in default for moneys due under the
8tax or fee Act upon which the certificate of registration,
9permit, or license is required or any other tax or fee Act
10administered by the Department. For purposes of this Section
11only, in determining whether a person is in default for moneys
12due, the Department shall include only amounts established as a
13final liability within the 20 years prior to the date of the
14Department's notice of refusal to issue or reissue the
15certificate of registration, permit, or license. For purposes
16of this Section, "person" means any natural individual, firm,
17partnership, association, joint stock company, joint
18adventure, public or private corporation, limited liability
19company, or a receiver, executor, trustee, guardian or other
20representative appointed by order of any court.
21    (c) When revoking or refusing to issue or reissue a
22certificate of registration, permit, or license issued by the
23Department, the procedure for notice and hearing used shall be
24the procedure provided under the Act pursuant to which the
25certificate of registration, permit, or license was issued.
26(Source: P.A. 98-496, eff. 1-1-14.)
 

 

 

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1    Section 10. The Cigarette Tax Act is amended by changing
2Sections 3-10, 4d, 4e, 4f, 6, 7, 8, 10, 11, 11a, 11b, 23, 24,
3and 26 and by adding Sections 4g, 4h, and 11c as follows:
 
4    (35 ILCS 130/3-10)
5    Sec. 3-10. Cigarette enforcement.
6    (a) Prohibitions. It is unlawful for any person:
7        (1) to sell or distribute in this State; to acquire,
8    hold, own, possess, or transport, for sale or distribution
9    in this State; or to import, or cause to be imported into
10    this State for sale or distribution in this State:
11            (A) any cigarettes the package of which:
12                (i) bears any statement, label, stamp,
13            sticker, or notice indicating that the
14            manufacturer did not intend the cigarettes to be
15            sold, distributed, or used in the United States,
16            including but not limited to labels stating "For
17            Export Only", "U.S. Tax Exempt", "For Use Outside
18            U.S.", or similar wording; or
19                (ii) does not comply with:
20                    (aa) all requirements imposed by or
21                pursuant to federal law regarding warnings and
22                other information on packages of cigarettes
23                manufactured, packaged, or imported for sale,
24                distribution, or use in the United States,

 

 

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1                including but not limited to the precise
2                warning labels specified in the federal
3                Cigarette Labeling and Advertising Act, 15
4                U.S.C. 1333; and
5                    (bb) all federal trademark and copyright
6                laws;
7            (B) any cigarettes imported into the United States
8        in violation of 26 U.S.C. 5754 or any other federal
9        law, or implementing federal regulations;
10            (C) any cigarettes that such person otherwise
11        knows or has reason to know the manufacturer did not
12        intend to be sold, distributed, or used in the United
13        States; or
14            (D) any cigarettes for which there has not been
15        submitted to the Secretary of the U.S. Department of
16        Health and Human Services the list or lists of the
17        ingredients added to tobacco in the manufacture of the
18        cigarettes required by the federal Cigarette Labeling
19        and Advertising Act, 15 U.S.C. 1335a;
20        (2) to alter the package of any cigarettes, prior to
21    sale or distribution to the ultimate consumer, so as to
22    remove, conceal, or obscure:
23            (A) any statement, label, stamp, sticker, or
24        notice described in subdivision (a)(1)(A)(i) of this
25        Section;
26            (B) any health warning that is not specified in, or

 

 

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1        does not conform with the requirements of, the federal
2        Cigarette Labeling and Advertising Act, 15 U.S.C.
3        1333; or
4        (3) to affix any stamp required pursuant to this Act to
5    the package of any cigarettes described in subdivision
6    (a)(1) of this Section or altered in violation of
7    subdivision (a)(2).
8    (b) Documentation. On the first business day of each month,
9each person licensed to affix the State tax stamp to cigarettes
10shall file with the Department, for all cigarettes imported
11into the United States to which the person has affixed the tax
12stamp in the preceding month:
13        (1) a copy of:
14            (A) the permit issued pursuant to the Internal
15        Revenue Code, 26 U.S.C. 5713, to the person importing
16        the cigarettes into the United States allowing the
17        person to import the cigarettes; and
18            (B) the customs form containing, with respect to
19        the cigarettes, the internal revenue tax information
20        required by the U.S. Bureau of Alcohol, Tobacco and
21        Firearms;
22        (2) a statement, signed by the person under penalty of
23    perjury, which shall be treated as confidential by the
24    Department and exempt from disclosure under the Freedom of
25    Information Act, identifying the brand and brand styles of
26    all such cigarettes, the quantity of each brand style of

 

 

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1    such cigarettes, the supplier of such cigarettes, and the
2    person or persons, if any, to whom such cigarettes have
3    been conveyed for resale; and a separate statement, signed
4    by the individual under penalty of perjury, which shall not
5    be treated as confidential or exempt from disclosure,
6    separately identifying the brands and brand styles of such
7    cigarettes; and
8        (3) a statement, signed by an officer of the
9    manufacturer or importer under penalty of perjury,
10    certifying that the manufacturer or importer has complied
11    with:
12            (A) the package health warning and ingredient
13        reporting requirements of the federal Cigarette
14        Labeling and Advertising Act, 15 U.S.C. 1333 and 1335a,
15        with respect to such cigarettes; and
16            (B) the provisions of Exhibit T of the Master
17        Settlement Agreement entered in the case of People of
18        the State of Illinois v. Philip Morris, et al. (Circuit
19        Court of Cook County, No. 96-L13146), including a
20        statement indicating whether the manufacturer is, or
21        is not, a participating tobacco manufacturer within
22        the meaning of Exhibit T.
23    (c) Administrative sanctions.
24        (1) Upon finding that a distributor, secondary
25    distributor, retailer, or person has committed any of the
26    acts prohibited by subsection (a), knowing or having reason

 

 

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1    to know that he or she has done so, or upon finding that a
2    distributor or person has failed to comply with any
3    requirement of subsection (b), the Department may revoke or
4    suspend the license or licenses of any distributor, or
5    secondary distributor, or retailer pursuant to the
6    procedures set forth in Section 6 and impose, on the
7    distributor, secondary distributor, retailer, or person, a
8    civil penalty in an amount not to exceed the greater of
9    500% of the retail value of the cigarettes involved or
10    $5,000.
11        (2) Cigarettes that are acquired, held, owned,
12    possessed, transported in, imported into, or sold or
13    distributed in this State in violation of this Section
14    shall be deemed contraband under this Act and are subject
15    to seizure and forfeiture as provided in this Act, and all
16    such cigarettes seized and forfeited shall be destroyed or
17    maintained and used in an undercover capacity. Such
18    cigarettes shall be deemed contraband whether the
19    violation of this Section is knowing or otherwise.
20    (d) Unfair trade practices. In addition to any other
21penalties provided for in this Act, a violation of subsection
22(a) or subsection (b) of this Section shall constitute an
23unlawful practice as provided in the Consumer Fraud and
24Deceptive Business Practices Act.
25    (d-1) Retailers issued a license under Section 4g of this
26Act and secondary distributors shall not be liable under

 

 

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1subsections (c)(1) and (d) of this Section for unknowingly
2possessing, selling, or distributing to consumers or users
3cigarettes identified in subsection (a)(1) of this Section if
4the cigarettes possessed, sold, or distributed by the licensed
5retailer or secondary distributor were obtained from a
6distributor licensed under this Act.
7    (d-2) Criminal penalties. A distributor, secondary
8distributor, retailer, or person who violates subsection (a),
9or a distributor, secondary distributor, or person who violates
10subsection (b) of this Section shall be guilty of a Class 4
11felony.
12    (e) Unfair cigarette sales. For purposes of the Trademark
13Registration and Protection Act and the Counterfeit Trademark
14Act, cigarettes imported or reimported into the United States
15for sale or distribution under any trade name, trade dress, or
16trademark that is the same as, or is confusingly similar to,
17any trade name, trade dress, or trademark used for cigarettes
18manufactured in the United States for sale or distribution in
19the United States shall be presumed to have been purchased
20outside of the ordinary channels of trade.
21    (f) General provisions.
22        (1) This Section shall be enforced by the Department;
23    provided that, at the request of the Director of Revenue or
24    the Director's duly authorized agent, the State police and
25    all local police authorities shall enforce the provisions
26    of this Section. The Attorney General has concurrent power

 

 

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1    with the State's Attorney of any county to enforce this
2    Section.
3        (2) For the purpose of enforcing this Section, the
4    Director of Revenue and any agency to which the Director
5    has delegated enforcement responsibility pursuant to
6    subdivision (f)(1) may request information from any State
7    or local agency and may share information with and request
8    information from any federal agency and any agency of any
9    other state or any local agency of any other state.
10        (3) In addition to any other remedy provided by law,
11    including enforcement as provided in subdivision (f)
12    (a)(1), any person may bring an action for appropriate
13    injunctive or other equitable relief for a violation of
14    this Section; actual damages, if any, sustained by reason
15    of the violation; and, as determined by the court, interest
16    on the damages from the date of the complaint, taxable
17    costs, and reasonable attorney's fees. If the trier of fact
18    finds that the violation is flagrant, it may increase
19    recovery to an amount not in excess of 3 times the actual
20    damages sustained by reason of the violation.
21    (g) Definitions. As used in this Section:
22    "Importer" means that term as defined in 26 U.S.C. 5702(1).
23    "Package" means that term as defined in 15 U.S.C. 1332(4).
24    (h) Applicability.
25        (1) This Section does not apply to:
26            (A) cigarettes allowed to be imported or brought

 

 

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1        into the United States for personal use; and
2            (B) cigarettes sold or intended to be sold as
3        duty-free merchandise by a duty-free sales enterprise
4        in accordance with the provisions of 19 U.S.C. 1555(b)
5        and any implementing regulations; except that this
6        Section shall apply to any such cigarettes that are
7        brought back into the customs territory for resale
8        within the customs territory.
9        (2) The penalties provided in this Section are in
10    addition to any other penalties imposed under other
11    provision of law.
12(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
1396-1027, eff. 7-12-10.)
 
14    (35 ILCS 130/4d)
15    Sec. 4d. Sales of cigarettes to and by retailers. In-state
16makers, manufacturers, and fabricators licensed as
17distributors under Section 4 of this Act and out-of-state
18makers, manufacturers, and fabricators holding permits under
19Section 4b of this Act may not sell original packages of
20cigarettes to retailers. A retailer who is licensed under
21Section 4g of this Act may sell only original packages of
22cigarettes obtained from manufacturer representatives,
23licensed secondary distributors, or licensed distributors
24other than in-state makers, manufacturers, or fabricators
25licensed as distributors under Section 4 of this Act and

 

 

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1out-of-state makers, manufacturers, or fabricators holding
2permits under Section 4b of this Act.
3(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
497-587, eff. 8-26-11.)
 
5    (35 ILCS 130/4e)
6    Sec. 4e. Sales of cigarettes to and by secondary
7distributors. In-state makers, manufacturers, and fabricators
8licensed as distributors under Section 4 of this Act and
9out-of-state makers, manufacturers, and fabricators holding
10permits under Section 4b of this Act may not sell original
11packages of cigarettes to secondary distributors. A secondary
12distributor may sell only original packages of cigarettes
13obtained from licensed distributors other than in-state
14makers, manufacturers, or fabricators licensed as distributors
15under Section 4 of this Act and out-of-state makers,
16manufacturers, or fabricators holding permits under Section 4b
17of this Act. Secondary distributors may sell cigarettes to
18Illinois retailers issued a license under Section 4g of this
19Act for resale, and are also authorized to make retail sales of
20cigarettes at the location on the secondary distributor's
21license as long as the secondary distributor obtains a license
22under Section 4g of the Cigarette Tax Act and sells 75% or more
23of the cigarettes sold at such location to retailers issued a
24license under Section 4g of this Act for resale. All sales by
25secondary distributors to retailers issued a license under

 

 

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1Section 4g of this Act must be made at the location on the
2secondary distributor's license. Retailers issued a license
3under Section 4g of this Act must take possession of all
4cigarettes sold by the secondary distributor at the secondary
5distributor's licensed address. Secondary distributors may not
6make deliveries of cigarettes to retailers.
7    Secondary distributors may not file a claim for credit or
8refund with the State under Section 9d of this Act.
9(Source: P.A. 96-1027, eff. 7-12-10.)
 
10    (35 ILCS 130/4f)
11    Sec. 4f. Manufacturer representatives.
12    (a) No manufacturer may market cigarettes produced by the
13manufacturer directly to retailers in this State issued a
14license under Section 4g of this Act without first having
15obtained authorization from the Department. Application for
16authority to maintain representatives in this State to market
17in this State cigarettes produced by the manufacturer shall be
18made to the Department on a form furnished and prescribed by
19the Department. Each applicant under this Section shall furnish
20the following information to the Department on a form signed
21and verified by the applicant under penalty of perjury:
22        (1) the name and address of the applicant;
23        (2) the address of every location from which the
24    applicant proposes to engage in business in this State;
25        (3) the number of manufacturer representatives the

 

 

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1    applicant requests to maintain in this State; and
2        (4) any other additional information as the Department
3    may reasonably require.
4    The following manufacturers are ineligible to receive
5authorization to maintain manufacturer representatives in this
6State:
7        (1) a manufacturer who owes, at the time of
8    application, any delinquent cigarette taxes that have been
9    determined by law to be due and unpaid, unless the
10    applicant has entered into an agreement approved by the
11    Department to pay the amount due;
12        (2) a manufacturer who has had a license revoked within
13    the past 2 years for misconduct relating to stolen or
14    contraband cigarettes or has been convicted of a state or
15    federal crime, punishable by imprisonment of one year or
16    more, relating to stolen or contraband cigarettes;
17        (3) a manufacturer who has been found, after notice and
18    a hearing, to have imported or caused to be imported into
19    the United States for sale or distribution any cigarette in
20    violation of 19 U.S.C. 1681a;
21        (4) a manufacturer who has been found, after notice and
22    a hearing, to have imported or caused to be imported into
23    the United States for sale or distribution or manufactured
24    for sale or distribution in the United States any cigarette
25    that does not fully comply with the Federal Cigarette
26    Labeling and Advertising Act (15 U.S.C. 1331, et seq.);

 

 

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1        (5) a manufacturer who has been found, after notice and
2    a hearing, to have made a material false statement in an
3    application or has failed to produce records required to be
4    maintained by this Act;
5        (6) a manufacturer who has been found, after notice and
6    hearing, to have violated any Section of this Act; or
7        (7) a manufacturer licensed as a distributor under
8    Section 4 of this Act or holding a permit under Section 4b
9    of this Act.
10    The Department, upon receipt of an application from a
11manufacturer who is eligible to maintain manufacturer
12representatives in this State, shall notify the applicant in
13writing, not more than 60 days after an application has been
14received, that the applicant may or may not maintain the
15requested number of manufacturer representatives in this
16State. A copy of the notice authorizing a manufacturer to
17maintain manufacturer representatives in this State shall be
18available for inspection by the Department at each place of
19business identified in the application and in the motor vehicle
20operated by marketing representatives in the course of
21performing his or her duties in this State on behalf of the
22manufacturer.
23    A manufacturer representative shall notify the Department
24of any change in the information contained on the application
25form and shall do so within 30 days after any such change.
26    (b) Only directors, officers, and employees of the

 

 

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1manufacturer may act as manufacturer representatives in this
2State. The manufacturer shall provide to the Department the
3names and addresses of the manufacturer representatives
4operating in this State and the make, model, and license plate
5number of each motor vehicle operated by a manufacturer
6representative in the course of performing his or her duties in
7this State on behalf of the manufacturer. The following
8individuals may not act as manufacturer representatives:
9        (1) an individual who owes any delinquent cigarette
10    taxes that have been determined by law to be due and
11    unpaid, unless the individual has entered into an agreement
12    approved by the Department to pay the amount due;
13        (2) an individual who has had a license revoked within
14    the past 2 years for misconduct relating to stolen or
15    contraband cigarettes or has been convicted of a state or
16    federal crime, punishable by imprisonment of one year or
17    more, relating to stolen or contraband cigarettes;
18        (3) an individual who has been found, after notice and
19    a hearing, to have made a material false statement in an
20    application or has failed to produce records required to be
21    maintained by this Act; or
22        (4) an individual who has been found, after notice and
23    hearing, to have violated any Section of this Act.
24    (c) Manufacturer representatives may sell to retailers in
25this State who are licensed under Section 4g of this Act only
26original packages of cigarettes made, manufactured, or

 

 

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1fabricated by the manufacturer and purchased or obtained from a
2distributor licensed under this Act, or the Cigarette Tax Use
3Act, and on which tax stamps have been affixed. Manufacturer
4representatives may sell up to 600 stamped original packages of
5cigarettes in a calendar year, for the purpose of promoting the
6manufacturer's brands of cigarettes. A manufacturer
7representative may not possess more than 500 stamped original
8packages of cigarettes made, manufactured, or fabricated by the
9manufacturer and purchased or obtained from a distributor
10licensed under this Act or the Cigarette Use Tax Act. Any
11original packages of cigarettes in the possession of a
12manufacturer representative that (i) are not made,
13manufactured, or fabricated by the manufacturer and purchased
14or obtained from a distributor licensed under this Act or the
15Cigarette Use Tax Act, other than cigarettes for personal use
16and consumption, (ii) exceed the maximum quantity of 500
17original packages of cigarettes, excluding packages of
18cigarettes for personal use and consumption; (iii) violate
19Section 3-10 of this Act; or (iv) do not have the proper tax
20stamps affixed, are contraband and subject to seizure and
21forfeiture.
22    Manufacturer representatives may sell, on behalf of
23licensed distributors, stamped original packages of cigarettes
24to retailers who are licensed under Section 4g of this Act on
25behalf of licensed distributors. The manufacturer
26representative shall provide the distributor with a signed

 

 

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1receipt for the cigarettes obtained from the distributor. The
2distributor shall invoice the licensed retailer, and the
3licensed retailer shall pay the distributor for all cigarettes
4provided to licensed retailers by manufacturer representatives
5on behalf of a distributor.
6    Manufacturer representatives may sell stamped original
7packages of cigarettes to licensed retailers that are purchased
8from licensed distributors. Distributors shall provide
9manufacturer representatives with invoices for stamped
10original packages of cigarettes sold to manufacturer
11representatives. Manufacturer representatives shall invoice
12licensed retailers, and the licensed retailers shall pay the
13manufacturer representatives for all original packages of
14cigarettes sold to licensed retailers.
15    (d) Any person aggrieved by any decision of the Department
16under this Section may, within 20 days after notice of the
17decision, protest and request a hearing. Upon receiving a
18request for a hearing, the Department shall give notice to the
19person requesting the hearing of the time and place fixed for
20the hearing and shall hold a hearing in conformity with the
21provisions of this Act and then issue its final administrative
22decision in the matter to that person. In the absence of a
23protest and request for a hearing within 20 days, the
24Department's decision shall become final without any further
25determination being made or notice given.
26(Source: P.A. 97-587, eff. 8-26-11.)
 

 

 

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1    (35 ILCS 130/4g new)
2    Sec. 4g. Retailer's license. Beginning on January 1, 2016,
3no person may engage in business as a retailer of cigarettes in
4this State without first having obtained a license from the
5Department. Application for license shall be made to the
6Department, by electronic means, in a form prescribed by the
7Department. Each applicant for a license under this Section
8shall furnish to the Department, in an electronic format
9established by the Department, the following information:
10        (1) the name and address of the applicant;
11        (2) the address of the location at which the applicant
12    proposes to engage in business as a retailer of cigarettes
13    in this State; and
14        (3) such other additional information as the
15    Department may lawfully require by its rules and
16    regulations.
17    The annual license fee payable to the Department for each
18retailer's license shall be $75. The fee shall be deposited
19into the Tax Compliance and Administration Fund and shall be
20for the cost of tobacco retail inspection and contraband
21tobacco and tobacco smuggling with at least two-thirds of the
22money being used for contraband tobacco and tobacco smuggling
23operations and enforcement.
24    Each applicant for a license shall pay the fee to the
25Department at the time of submitting its application for a

 

 

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1license to the Department. The Department shall require an
2applicant for a license under this Section to electronically
3file and pay the fee.
4    A separate annual license fee shall be paid for each place
5of business at which a person who is required to procure a
6retailer's license under this Section proposes to engage in
7business as a retailer in Illinois under this Act.
8    The following are ineligible to receive a retailer's
9license under this Act:
10        (1) a person who has been convicted of a felony related
11    to the illegal transportation, sale, or distribution of
12    cigarettes, or a tobacco-related felony, under any federal
13    or State law, if the Department, after investigation and a
14    hearing if requested by the applicant, determines that the
15    person has not been sufficiently rehabilitated to warrant
16    the public trust; or
17        (2) a corporation, if any officer, manager, or director
18    thereof, or any stockholder or stockholders owning in the
19    aggregate more than 5% of the stock of such corporation,
20    would not be eligible to receive a license under this Act
21    for any reason.
22    The Department, upon receipt of an application and license
23fee, in proper form, from a person who is eligible to receive a
24retailer's license under this Act, shall issue to such
25applicant a license in form as prescribed by the Department.
26That license shall permit the applicant to whom it is issued to

 

 

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1engage in business as a retailer under this Act at the place
2shown in his or her application. All licenses issued by the
3Department under this Section shall be valid for a period not
4to exceed one year after issuance unless sooner revoked,
5canceled, or suspended as provided in this Act. No license
6issued under this Section is transferable or assignable. The
7license shall be conspicuously displayed in the place of
8business conducted by the licensee in Illinois under such
9license. The Department shall not issue a retailer's license to
10a retailer unless the retailer is also registered under the
11Retailers' Occupation Tax Act. A person who obtains a license
12as a retailer who ceases to do business as specified in the
13license, or who never commenced business, or who obtains a
14distributor's license, or whose license is suspended or
15revoked, shall immediately surrender the license to the
16Department.
17    Any person aggrieved by any decision of the Department
18under this subsection may, within 30 days after notice of the
19decision, protest and request a hearing. Upon receiving a
20request for a hearing, the Department shall give written notice
21to the person requesting the hearing of the time and place
22fixed for the hearing and shall hold a hearing in conformity
23with the provisions of this Act and then issue its final
24administrative decision in the matter to that person. In the
25absence of a protest and request for a hearing within 30 days,
26the Department's decision shall become final without any

 

 

HB2494 Enrolled- 21 -LRB098 08122 JLS 38213 b

1further determination being made or notice given.
 
2    (35 ILCS 130/4h new)
3    Sec. 4h. Purchases of cigarettes by licensed retailers. A
4person who possesses a retailer's license under Section 4g of
5this Act shall obtain cigarettes for sale only from a licensed
6distributor, secondary distributor, or manufacturer
7representative.
 
8    (35 ILCS 130/6)  (from Ch. 120, par. 453.6)
9    Sec. 6. Revocation, cancellation, or suspension of
10license. The Department may, after notice and hearing as
11provided for by this Act, revoke, cancel or suspend the license
12of any distributor, or secondary distributor, or retailer for
13the violation of any provision of this Act, or for
14noncompliance with any provision herein contained, or for any
15noncompliance with any lawful rule or regulation promulgated by
16the Department under Section 8 of this Act, or because the
17licensee is determined to be ineligible for a distributor's
18license for any one or more of the reasons provided for in
19Section 4 of this Act, or because the licensee is determined to
20be ineligible for a secondary distributor's license for any one
21or more of the reasons provided for in Section 4c of this Act,
22or because the licensee is determined to be ineligible for a
23retailer's license for any one or more of the reasons provided
24for in Section 4g of this Act. However, no such license shall

 

 

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1be revoked, cancelled or suspended, except after a hearing by
2the Department with notice to the distributor, or secondary
3distributor, or retailer, as aforesaid, and affording such
4distributor, or secondary distributor, or retailer a
5reasonable opportunity to appear and defend, and any
6distributor, or secondary distributor, or retailer aggrieved
7by any decision of the Department with respect thereto may have
8the determination of the Department judicially reviewed, as
9herein provided.
10    The Department may revoke, cancel, or suspend the license
11of any distributor for a violation of the Tobacco Product
12Manufacturers' Escrow Enforcement Act as provided in Section 30
13of that Act. The Department may revoke, cancel, or suspend the
14license of any secondary distributor for a violation of
15subsection (e) of Section 15 of the Tobacco Product
16Manufacturers' Escrow Enforcement Act.
17    If the retailer has a training program that facilitates
18compliance with minimum-age tobacco laws, the Department shall
19suspend for 3 days the license of that retailer for a fourth or
20subsequent violation of the Prevention of Tobacco Use by Minors
21and Sale and Distribution of Tobacco Products Act, as provided
22in subsection (a) of Section 2 of that Act. For the purposes of
23this Section, any violation of subsection (a) of Section 2 of
24the Prevention of Tobacco Use by Minors and Sale and
25Distribution of Tobacco Products Act occurring at the
26retailer's licensed location during a 24-month period shall be

 

 

HB2494 Enrolled- 23 -LRB098 08122 JLS 38213 b

1counted as a violation against the retailer.
2    If the retailer does not have a training program that
3facilitates compliance with minimum-age tobacco laws, the
4Department shall suspend for 3 days the license of that
5retailer for a second violation of the Prevention of Tobacco
6Use by Minors and Sale and Distribution of Tobacco Products
7Act, as provided in subsection (a-5) of Section 2 of that Act.
8    If the retailer does not have a training program that
9facilitates compliance with minimum-age tobacco laws, the
10Department shall suspend for 7 days the license of that
11retailer for a third violation of the Prevention of Tobacco Use
12by Minors and Sale and Distribution of Tobacco Products Act, as
13provided in subsection (a-5) of Section 2 of that Act.
14    If the retailer does not have a training program that
15facilitates compliance with minimum-age tobacco laws, the
16Department shall suspend for 30 days the license of a retailer
17for a fourth or subsequent violation of the Prevention of
18Tobacco Use by Minors and Sale and Distribution of Tobacco
19Products Act, as provided in subsection (a-5) of Section 2 of
20that Act.
21    A training program that facilitates compliance with
22minimum-age tobacco laws must include at least the following
23elements: (i) it must explain that only individuals displaying
24valid identification demonstrating that they are 18 years of
25age or older shall be eligible to purchase cigarettes or
26tobacco products; (ii) it must explain where a clerk can check

 

 

HB2494 Enrolled- 24 -LRB098 08122 JLS 38213 b

1identification for a date of birth; and (iii) it must explain
2the penalties that a clerk and retailer are subject to for
3violations of the Prevention of Tobacco Use by Minors and Sale
4and Distribution of Tobacco Products Act.
5    Any distributor, or secondary distributor, or retailer
6aggrieved by any decision of the Department under this Section
7may, within 20 days after notice of the decision, protest and
8request a hearing. Upon receiving a request for a hearing, the
9Department shall give notice in writing to the distributor, or
10secondary distributor, or retailer requesting the hearing that
11contains a statement of the charges preferred against the
12distributor, or secondary distributor, or retailer and that
13states the time and place fixed for the hearing. The Department
14shall hold the hearing in conformity with the provisions of
15this Act and then issue its final administrative decision in
16the matter to the distributor, or secondary distributor, or
17retailer. In the absence of a protest and request for a hearing
18within 20 days, the Department's decision shall become final
19without any further determination being made or notice given.
20    No license so revoked, as aforesaid, shall be reissued to
21any such distributor, or secondary distributor, or retailer
22within a period of 6 months after the date of the final
23determination of such revocation. No such license shall be
24reissued at all so long as the person who would receive the
25license is ineligible to receive a distributor's license under
26this Act for any one or more of the reasons provided for in

 

 

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1Section 4 of this Act, or is ineligible to receive a secondary
2distributor's license under this Act for any one or more of the
3reasons provided for in Section 4c of this Act, or is
4determined to be ineligible for a retailer's license under the
5Act for any one or more of the reasons provided for in Section
64g of this Act.
7    The Department upon complaint filed in the circuit court
8may by injunction restrain any person who fails, or refuses, to
9comply with any of the provisions of this Act from acting as a
10distributor, or secondary distributor, or retailer of
11cigarettes in this State.
12(Source: P.A. 96-1027, eff. 7-12-10.)
 
13    (35 ILCS 130/7)  (from Ch. 120, par. 453.7)
14    Sec. 7. The Department or any officer or employee of the
15Department designated, in writing, by the Director thereof,
16shall at its or his or her own instance, or on the written
17request of any distributor, secondary distributor, retailer,
18manufacturer with authority to maintain manufacturer
19representatives, or other interested party to the proceeding,
20issue subpoenas requiring the attendance of and the giving of
21testimony by witnesses, and subpoenas duces tecum requiring the
22production of books, papers, records or memoranda. All
23subpoenas and subpoenas duces tecum issued under the terms of
24this Act may be served by any person of full age. The fees of
25witnesses for attendance and travel shall be the same as the

 

 

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1fees of witnesses before the circuit court of this State; such
2fees to be paid when the witness is excused from further
3attendance. When the witness is subpoenaed at the instance of
4the Department or any officer or employee thereof, such fees
5shall be paid in the same manner as other expenses of the
6Department, and when the witness is subpoenaed at the instance
7of any other party to any such proceeding, the cost of service
8of the subpoena or subpoena duces tecum and the fee of the
9witness shall be borne by the party at whose instance the
10witness is summoned. In such case the Department, in its
11discretion, may require a deposit to cover the cost of such
12service and witness fees. A subpoena or subpoena duces tecum so
13issued shall be served in the same manner as a subpoena or
14subpoena duces tecum issued out of a court.
15    Any circuit court of this State, upon the application of
16the Department or any officer or employee thereof, or upon the
17application of any other party to the proceeding, may, in its
18discretion, compel the attendance of witnesses, the production
19of books, papers, records or memoranda and the giving of
20testimony before the Department or any officer or employee
21thereof conducting an investigation or holding a hearing
22authorized by this Act, by an attachment for contempt, or
23otherwise, in the same manner as production of evidence may be
24compelled before the court.
25    The Department or any officer or employee thereof, or any
26other party in an investigation or hearing before the

 

 

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1Department, may cause the depositions of witnesses within the
2State to be taken in the manner prescribed by law for like
3depositions, or depositions for discovery in civil actions in
4courts of this State, and to that end compel the attendance of
5witnesses and the production of books, papers, records or
6memoranda, in the same manner hereinbefore provided.
7(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 
8    (35 ILCS 130/8)  (from Ch. 120, par. 453.8)
9    Sec. 8. The Department may make, promulgate and enforce
10such reasonable rules and regulations relating to the
11administration and enforcement of this Act as may be deemed
12expedient.
13    Whenever notice is required by this Act, such notice may be
14given by United States certified or registered mail, addressed
15to the person concerned at his last known address, and proof of
16such mailing shall be sufficient for the purposes of this Act.
17Notice of any hearing provided for by this Act and held before
18the Department shall be so given not less than 7 days prior to
19the day fixed for the hearing.
20    Hearings provided for in this Act, other than hearings
21before the Illinois Independent Tax Tribunal, shall be held:
22        (1) In Cook County, if the taxpayer's or licensee's
23    principal place of business is in that county;
24        (2) At the Department's office nearest the taxpayer's
25    or licensee's principal place of business, if the

 

 

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1    taxpayer's or licensee's principal place of business is in
2    Illinois but outside Cook County;
3        (3) In Sangamon County, if the taxpayer's or licensee's
4    principal place of business is outside Illinois.
5    The Circuit Court of the County wherein the hearing is held
6has power to review all final administrative decisions of the
7Department in administering this Act. The provisions of the
8Administrative Review Law, and all amendments and
9modifications thereof, and the rules adopted pursuant thereto,
10shall apply to and govern all proceedings for the judicial
11review of final administrative decisions of the Department
12under this Act. The term "administrative decision" is defined
13as in Section 3-101 of the Code of Civil Procedure.
14    Service upon the Director of Revenue or Assistant Director
15of Revenue of summons issued in any action to review a final
16administrative decision shall be service upon the Department.
17The Department shall certify the record of its proceedings if
18the distributor, secondary distributor, retailer, or
19manufacturer with authority to maintain manufacturer
20representatives pays to it the sum of 75˘ per page of testimony
21taken before the Department and 25˘ per page of all other
22matters contained in such record, except that these charges may
23be waived where the Department is satisfied that the aggrieved
24party is a poor person who cannot afford to pay such charges.
25Before the delivery of such record to the person applying for
26it, payment of these charges must be made, and if the record is

 

 

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1not paid for within 30 days after notice that such record is
2available, the complaint may be dismissed by the court upon
3motion of the Department.
4    No stay order shall be entered by the Circuit Court unless
5the distributor, secondary distributor, retailer, or
6manufacturer with authority to maintain manufacturer
7representatives files with the court a bond in an amount fixed
8and approved by the court, to indemnify the State against all
9loss and injury which may be sustained by it on account of the
10review proceedings and to secure all costs which may be
11occasioned by such proceedings.
12    Whenever any proceeding provided by this Act is begun
13before the Department, either by the Department or by a person
14subject to this Act, and such person thereafter dies or becomes
15a person under legal disability before such proceeding is
16concluded, the legal representative of the deceased person or
17of the person under legal disability shall notify the
18Department of such death or legal disability. Such legal
19representative, as such, shall then be substituted by the
20Department for such person. If the legal representative fails
21to notify the Department of his or her appointment as such
22legal representative, the Department may, upon its own motion,
23substitute such legal representative in the proceeding pending
24before the Department for the person who died or became a
25person under legal disability.
26    Hearings to contest an administrative decision under this

 

 

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1Act conducted as a result of a protest filed with the Illinois
2Independent Tax Tribunal on or after July 1, 2013 shall be
3conducted pursuant to the provisions of the Illinois
4Independent Tax Tribunal Act of 2012.
5(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11;
697-1129, eff. 8-28-12.)
 
7    (35 ILCS 130/10)  (from Ch. 120, par. 453.10)
8    Sec. 10. The Department, or any officer or employee
9designated in writing by the Director thereof, for the purpose
10of administering and enforcing the provisions of this Act, may
11hold investigations and, except as otherwise provided in the
12Illinois Independent Tax Tribunal Act of 2012, may hold
13hearings concerning any matters covered by this Act, and may
14examine books, papers, records or memoranda bearing upon the
15sale or other disposition of cigarettes by a distributor,
16secondary distributor, retailer, manufacturer with authority
17to maintain manufacturer representatives under Section 4f of
18this Act, or manufacturer representative, and may issue
19subpoenas requiring the attendance of a distributor, secondary
20distributor, retailer, manufacturer with authority to maintain
21manufacturer representatives under Section 4f of this Act, or
22manufacturer representative, or any officer or employee of a
23distributor, secondary distributor, retailer, manufacturer
24with authority to maintain manufacturer representatives under
25Section 4f of this Act, or any person having knowledge of the

 

 

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1facts, and may take testimony and require proof, and may issue
2subpoenas duces tecum to compel the production of relevant
3books, papers, records and memoranda, for the information of
4the Department.
5    All hearings to contest administrative decisions of the
6Department conducted as a result of a protest filed with the
7Illinois Independent Tax Tribunal on or after July 1, 2013
8shall be subject to the provisions of the Illinois Independent
9Tax Tribunal Act of 2012.
10    In the conduct of any investigation or hearing provided for
11by this Act, neither the Department, nor any officer or
12employee thereof, shall be bound by the technical rules of
13evidence, and no informality in the proceedings nor in the
14manner of taking testimony shall invalidate any rule, order,
15decision or regulation made, approved or confirmed by the
16Department.
17    The Director of Revenue, or any duly authorized officer or
18employee of the Department, shall have the power to administer
19oaths to such persons required by this Act to give testimony
20before the said Department.
21    The books, papers, records and memoranda of the Department,
22or parts thereof, may be proved in any hearing, investigation
23or legal proceeding by a reproduced copy thereof under the
24certificate of the Director of Revenue. Such reproduced copy
25shall, without further proof, be admitted into evidence before
26the Department or in any legal proceeding.

 

 

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1(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11;
297-1129, eff. 8-28-12.)
 
3    (35 ILCS 130/11)  (from Ch. 120, par. 453.11)
4    Sec. 11. Every distributor of cigarettes, who is required
5to procure a license under this Act, shall keep within
6Illinois, at his licensed address, complete and accurate
7records of cigarettes held, purchased, manufactured, brought
8in or caused to be brought in from without the State, and sold,
9or otherwise disposed of, and shall preserve and keep within
10Illinois at his licensed address all invoices, bills of lading,
11sales records, copies of bills of sale, inventory at the close
12of each period for which a return is required of all cigarettes
13on hand and of all cigarette revenue stamps, both affixed and
14unaffixed, and other pertinent papers and documents relating to
15the manufacture, purchase, sale or disposition of cigarettes.
16Every sales invoice issued by a licensed distributor to a
17retailer in this State shall contain the distributor's
18cigarette distributor license number. All books and records and
19other papers and documents that are required by this Act to be
20kept shall be kept in the English language, and shall, at all
21times during the usual business hours of the day, be subject to
22inspection by the Department or its duly authorized agents and
23employees. The Department may adopt rules that establish
24requirements, including record forms and formats, for records
25required to be kept and maintained by taxpayers. For purposes

 

 

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1of this Section, "records" means all data maintained by the
2taxpayer, including data on paper, microfilm, microfiche or any
3type of machine-sensible data compilation. Those books,
4records, papers and documents shall be preserved for a period
5of at least 3 years after the date of the documents, or the
6date of the entries appearing in the records, unless the
7Department, in writing, authorizes their destruction or
8disposal at an earlier date. At all times during the usual
9business hours of the day any duly authorized agent or employee
10of the Department may enter any place of business of the
11distributor, without a search warrant, and inspect the premises
12and the stock or packages of cigarettes and the vending devices
13therein contained, to determine whether any of the provisions
14of this Act are being violated. If such agent or employee is
15denied free access or is hindered or interfered with in making
16such examination as herein provided, the license of the
17distributor at such premises shall be subject to revocation by
18the Department.
19(Source: P.A. 88-480.)
 
20    (35 ILCS 130/11a)
21    Sec. 11a. Secondary distributors; records. Every secondary
22distributor of cigarettes, who is required to procure a license
23under this Act, shall keep within Illinois, at his licensed
24address, complete and accurate records of cigarettes held,
25purchased, brought in from without the State, and sold, or

 

 

HB2494 Enrolled- 34 -LRB098 08122 JLS 38213 b

1otherwise disposed of, and shall preserve and keep within
2Illinois at his licensed address all invoices, bills of lading,
3sales records, copies of bills of sale, inventory at the close
4of each period for which a report is required of all cigarettes
5on hand, and other pertinent papers and documents relating to
6the purchase, sale, or disposition of cigarettes. Every sales
7invoice issued by a secondary distributor to a retailer in this
8State shall contain the distributor's secondary distributor
9license number. All books and records and other papers and
10documents that are required by this Act to be kept shall be
11kept in the English language, and shall, at all times during
12the usual business hours of the day, be subject to inspection
13by the Department or its duly authorized agents and employees.
14The Department may adopt rules that establish requirements,
15including record forms and formats, for records required to be
16kept and maintained by secondary distributors. For purposes of
17this Section, "records" means all data maintained by the
18secondary distributors, including data on paper, microfilm,
19microfiche or any type of machine sensible data compilation.
20Those books, records, papers, and documents shall be preserved
21for a period of at least 3 years after the date of the
22documents, or the date of the entries appearing in the records,
23unless the Department, in writing, authorizes their
24destruction or disposal at an earlier date. At all times during
25the usual business hours of the day any duly authorized agent
26or employee of the Department may enter any place of business

 

 

HB2494 Enrolled- 35 -LRB098 08122 JLS 38213 b

1of the secondary distributor without a search warrant and may
2inspect the premises and the stock or packages of cigarettes
3therein contained to determine whether any of the provisions of
4this Act are being violated. If such agent or employee is
5denied free access or is hindered or interfered with in making
6such examination as herein provided, the license of the
7secondary distributor at such premises shall be subject to
8revocation by the Department.
9(Source: P.A. 96-1027, eff. 7-12-10.)
 
10    (35 ILCS 130/11b)
11    Sec. 11b. Manufacturer representatives; records. Every
12manufacturer with authority to maintain manufacturer
13representatives under Section 4f of this Act shall keep within
14Illinois, at his business address identified under Section 4f
15of this Act, complete and accurate records of cigarettes
16purchased, sold, or otherwise disposed of, and shall preserve
17and keep within Illinois at his business address all invoices,
18sales records, copies of bills of sale, inventory at the close
19of each period for which a report is required of all cigarettes
20on hand, and other pertinent papers and documents relating to
21the purchase, sale, or disposition of cigarettes. Every sales
22invoice issued by a manufacturer representative to a retailer
23in this State shall contain the manufacturer's manufacturer
24representative license number. All books and records and other
25papers and documents that are required by this Act to be kept

 

 

HB2494 Enrolled- 36 -LRB098 08122 JLS 38213 b

1shall be kept in the English language, and shall, at all times
2during the usual business hours of the day, be subject to
3inspection by the Department or its duly authorized agents and
4employees. The Department may adopt rules that establish
5requirements, including record forms and formats, for records
6required to be kept and maintained by manufacturers with
7authority to maintain manufacturer representatives under
8Section 4f of this Act and their manufacturer representatives.
9For purposes of this Section, "records" means all data
10maintained by the manufacturers with authority to maintain
11manufacturer representatives under Section 4f of this Act and
12their manufacturer representatives, including data on paper,
13microfilm, microfiche or any type of machine sensible data
14compilation. Those books, records, papers, and documents shall
15be preserved for a period of at least 3 years after the date of
16the documents, or the date of the entries appearing in the
17records, unless the Department, in writing, authorizes their
18destruction or disposal at an earlier date. At all times during
19the usual business hours of the day, any duly authorized agent
20or employee of the Department may enter any place of business
21of the manufacturers with authority to maintain manufacturer
22representatives under Section 4f of this Act and their
23manufacturer representatives, or inspect any motor vehicle
24used by a manufacturer representative in the course of
25business, without a search warrant and may inspect the
26premises, motor vehicle, and any packages of cigarettes therein

 

 

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1contained to determine whether any of the provisions of this
2Act are being violated. If such agent or employee is denied
3free access or is hindered or interfered with in making such
4examination as herein provided, the ability to maintain
5marketing representatives in Illinois may be withdrawn by the
6Department.
7(Source: P.A. 97-587, eff. 8-26-11.)
 
8    (35 ILCS 130/11c new)
9    Sec. 11c. Retailers; records. Every retailer who is
10required to procure a license under this Act shall keep within
11Illinois complete and accurate records of cigarettes
12purchased, sold, or otherwise disposed of. It shall be the duty
13of every retail licensee to make sales records, copies of bills
14of sale, and inventory at the close of each period for which a
15report is required of all cigarettes on hand available upon
16reasonable notice for the purpose of investigation and control
17by the Department. Such records need not be maintained on the
18licensed premises, but must be maintained in the State of
19Illinois; however, if access is available electronically, the
20records may be maintained out of state. However, all original
21invoices or copies thereof covering purchases of cigarettes
22must be retained on the licensed premises for a period of 90
23days after such purchase, unless the Department has granted a
24waiver in response to a written request in cases where records
25are kept at a central business location within the State of

 

 

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1Illinois or in cases where records that are available
2electronically are maintained out of state. The Department may
3adopt rules that establish requirements, including record
4forms and formats, for records required to be kept and
5maintained by the retailer.
6    For purposes of this Section, "records" means all data
7maintained by the retailer, including data on paper, microfilm,
8microfiche or any type of machine sensible data compilation.
9Those books, records, papers, and documents shall be preserved
10for a period of at least 3 years after the date of the
11documents, or the date of the entries appearing in the records,
12unless the Department, in writing, authorizes their
13destruction or disposal at an earlier date. At all times during
14the usual business hours of the day, any duly authorized agent
15or employee of the Department may enter any place of business
16of the retailer without a search warrant and may inspect the
17premises to determine whether any of the provisions of this Act
18are being violated. If such agent or employee is denied free
19access or is hindered or interfered with in making such
20examination as herein provided, the license of the retailer
21shall be subject to suspension or revocation by the Department.
 
22    (35 ILCS 130/23)  (from Ch. 120, par. 453.23)
23    Sec. 23. Every distributor, secondary distributor,
24retailer, manufacturer with authority to maintain manufacturer
25representatives under Section 4f of this Act and their

 

 

HB2494 Enrolled- 39 -LRB098 08122 JLS 38213 b

1manufacturer representatives, or other person who shall
2knowingly and wilfully sell or offer for sale any original
3package, as defined in this Act, having affixed thereto any
4fraudulent, spurious, imitation or counterfeit stamp, or stamp
5which has been previously affixed, or affixes a stamp which has
6previously been affixed to an original package, or who shall
7knowingly and wilfully sell or offer for sale any original
8package, as defined in this Act, having imprinted thereon
9underneath the sealed transparent wrapper thereof any
10fraudulent, spurious, imitation or counterfeit tax imprint,
11shall be deemed guilty of a Class 2 felony.
12(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 
13    (35 ILCS 130/24)  (from Ch. 120, par. 453.24)
14    Sec. 24. Punishment for sale or possession of packages of
15contraband cigarettes.
16    (a) Possession or sale of 100 or less packages of
17contraband cigarettes. With the exception of licensed
18distributors, licensed secondary distributors, or licensed
19transporters, as defined in Section 9c of this Act, any person
20who has in his or her possession or sells 100 or less original
21packages of contraband cigarettes is guilty of a Class A
22misdemeanor and a Class 4 felony for each subsequent offense
23occurring within 12 months of a prior offense.
24    (b) Possession or sale of more than 100 but less than 251
25packages of contraband cigarettes. With the exception of

 

 

HB2494 Enrolled- 40 -LRB098 08122 JLS 38213 b

1licensed distributors, licensed secondary distributors, or
2licensed transporters, as defined in Section 9c of this Act,
3any person who has in his or her possession or sells more than
4100 but less than 251 original packages of contraband
5cigarettes is guilty of a Class A misdemeanor for a first
6offense and a Class 4 felony for each subsequent offense.
7    (c) Possession or sale of more than 250 but less than 1,001
8packages of contraband cigarettes. With the exception of
9licensed distributors, licensed secondary distributors, or
10licensed transporters, as defined in Section 9c of this Act,
11any person who has in his or her possession or sells more than
12250 but less than 1,001 original packages of contraband
13cigarettes is guilty of a Class 4 felony.
14    (d) Possession or sale of more than 1,000 packages of
15contraband cigarettes. With the exception of licensed
16distributors, licensed secondary distributors, or licensed
17transporters, as defined in Section 9c of this Act, any person
18who has in his or her possession or sells more than 1,000
19original packages of contraband cigarettes is guilty of a Class
203 felony.
21    (e) Any person licensed as a distributor, secondary
22distributor, or transporter, as defined in Section 9c of this
23Act, who has in his or her possession or sells 100 or less
24original packages of contraband cigarettes is guilty of a Class
25A misdemeanor and a Class 4 felony for each subsequent offense
26occurring within 12 months of a prior offense.

 

 

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1    (f) Any person licensed as a distributor, secondary
2distributor, or transporter, as defined in Section 9c of this
3Act, who has in his or her possession or sells more than 100
4original packages of contraband cigarettes is guilty of a Class
54 felony.
6    (g) Notwithstanding subsections (e) through (f), licensed
7distributors and transporters, as defined in Section 9c of this
8Act, may possess unstamped packages of cigarettes.
9Notwithstanding subsections (e) through (f), licensed
10distributors may possess cigarettes that bear a tax stamp of
11another state or taxing jurisdiction. Notwithstanding
12subsections (e) through (f), a licensed distributor or licensed
13secondary distributor may possess contraband cigarettes
14returned to the distributor or licensed secondary distributor
15by a retailer if the distributor or licensed secondary
16distributor immediately conducts an inventory of the
17cigarettes being returned, the distributor or licensed
18secondary distributor and the retailer returning the
19contraband cigarettes sign the inventory, the distributor or
20licensed secondary distributor provides a copy of the signed
21inventory to the retailer, and the distributor retains the
22inventory in its books and records and promptly notifies the
23Department of Revenue.
24    (h) Notwithstanding subsections (a) through (d) of this
25Section, a retailer unknowingly possessing contraband
26cigarettes obtained from a licensed distributor or licensed

 

 

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1secondary distributor or knowingly possessing contraband
2cigarettes obtained from a licensed distributor is not subject
3to penalties under this Section if the retailer, within 48
4hours after discovering that the cigarettes are contraband
5cigarettes, excluding Saturdays, Sundays, and holidays: (i)
6notifies the Department and the licensed distributor or
7licensed secondary distributor from whom the cigarettes were
8obtained, orally and in writing, that he or she possesses
9contraband cigarettes obtained from a licensed distributor or
10licensed secondary distributor; (ii) places the contraband
11cigarettes in one or more containers and seals those
12containers; and (iii) places on the containers the following or
13similar language: "Contraband Cigarettes. Not For Sale." All
14contraband cigarettes in the possession of a retailer remain
15subject to forfeiture under the provisions of this Act.
16    Any retailer who knowingly possesses packages of
17cigarettes with a counterfeit stamp with intent to sell is
18guilty of a Class 2 felony. Any retailer who knowingly
19possesses unstamped packages of cigarettes with intent to sell
20is guilty of a Class 4 felony. A retailer shall not be liable
21for unknowingly possessing, selling, or distributing to
22consumers cigarettes that contain an old stamp if the correct
23tax was collected at the point of sale and the cigarettes were
24obtained from a distributor licensed under this Act.
25(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
 

 

 

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1    (35 ILCS 130/26)  (from Ch. 120, par. 453.26)
2    Sec. 26. Whoever acts as a distributor, or secondary
3distributor, retailer, or manufacturer representative of
4original packages without having a license, as required by this
5Act, shall be guilty of a Class 4 felony.
6(Source: P.A. 96-1027, eff. 7-12-10.)
 
7    Section 15. The Cigarette Use Tax Act is amended by
8changing Sections 3-10, 4d, 4e, 28, and 30 as follows:
 
9    (35 ILCS 135/3-10)
10    Sec. 3-10. Cigarette enforcement.
11    (a) Prohibitions. It is unlawful for any person:
12        (1) to sell or distribute in this State; to acquire,
13    hold, own, possess, or transport, for sale or distribution
14    in this State; or to import, or cause to be imported into
15    this State for sale or distribution in this State:
16            (A) any cigarettes the package of which:
17                (i) bears any statement, label, stamp,
18            sticker, or notice indicating that the
19            manufacturer did not intend the cigarettes to be
20            sold, distributed, or used in the United States,
21            including but not limited to labels stating "For
22            Export Only", "U.S. Tax Exempt", "For Use Outside
23            U.S.", or similar wording; or
24                (ii) does not comply with:

 

 

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1                    (aa) all requirements imposed by or
2                pursuant to federal law regarding warnings and
3                other information on packages of cigarettes
4                manufactured, packaged, or imported for sale,
5                distribution, or use in the United States,
6                including but not limited to the precise
7                warning labels specified in the federal
8                Cigarette Labeling and Advertising Act, 15
9                U.S.C. 1333; and
10                    (bb) all federal trademark and copyright
11                laws;
12            (B) any cigarettes imported into the United States
13        in violation of 26 U.S.C. 5754 or any other federal
14        law, or implementing federal regulations;
15            (C) any cigarettes that such person otherwise
16        knows or has reason to know the manufacturer did not
17        intend to be sold, distributed, or used in the United
18        States; or
19            (D) any cigarettes for which there has not been
20        submitted to the Secretary of the U.S. Department of
21        Health and Human Services the list or lists of the
22        ingredients added to tobacco in the manufacture of the
23        cigarettes required by the federal Cigarette Labeling
24        and Advertising Act, 15 U.S.C. 1335a;
25        (2) to alter the package of any cigarettes, prior to
26    sale or distribution to the ultimate consumer, so as to

 

 

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1    remove, conceal, or obscure:
2            (A) any statement, label, stamp, sticker, or
3        notice described in subdivision (a)(1)(A)(i) of this
4        Section;
5            (B) any health warning that is not specified in, or
6        does not conform with the requirements of, the federal
7        Cigarette Labeling and Advertising Act, 15 U.S.C.
8        1333; or
9        (3) to affix any stamp required pursuant to this Act to
10    the package of any cigarettes described in subdivision
11    (a)(1) of this Section or altered in violation of
12    subdivision (a)(2).
13    (b) Documentation. On the first business day of each month,
14each person licensed to affix the State tax stamp to cigarettes
15shall file with the Department, for all cigarettes imported
16into the United States to which the person has affixed the tax
17stamp in the preceding month:
18        (1) a copy of:
19            (A) the permit issued pursuant to the Internal
20        Revenue Code, 26 U.S.C. 5713, to the person importing
21        the cigarettes into the United States allowing the
22        person to import the cigarettes; and
23            (B) the customs form containing, with respect to
24        the cigarettes, the internal revenue tax information
25        required by the U.S. Bureau of Alcohol, Tobacco and
26        Firearms;

 

 

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1        (2) a statement, signed by the person under penalty of
2    perjury, which shall be treated as confidential by the
3    Department and exempt from disclosure under the Freedom of
4    Information Act, identifying the brand and brand styles of
5    all such cigarettes, the quantity of each brand style of
6    such cigarettes, the supplier of such cigarettes, and the
7    person or persons, if any, to whom such cigarettes have
8    been conveyed for resale; and a separate statement, signed
9    by the individual under penalty of perjury, which shall not
10    be treated as confidential or exempt from disclosure,
11    separately identifying the brands and brand styles of such
12    cigarettes; and
13        (3) a statement, signed by an officer of the
14    manufacturer or importer under penalty of perjury,
15    certifying that the manufacturer or importer has complied
16    with:
17            (A) the package health warning and ingredient
18        reporting requirements of the federal Cigarette
19        Labeling and Advertising Act, 15 U.S.C. 1333 and 1335a,
20        with respect to such cigarettes; and
21            (B) the provisions of Exhibit T of the Master
22        Settlement Agreement entered in the case of People of
23        the State of Illinois v. Philip Morris, et al. (Circuit
24        Court of Cook County, No. 96-L13146), including a
25        statement indicating whether the manufacturer is, or
26        is not, a participating tobacco manufacturer within

 

 

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1        the meaning of Exhibit T.
2    (c) Administrative sanctions.
3        (1) Upon finding that a distributor, secondary
4    distributor, retailer, or a person has committed any of the
5    acts prohibited by subsection (a), knowing or having reason
6    to know that he or she has done so, or upon finding that a
7    distributor or person has failed to comply with any
8    requirement of subsection (b), the Department may revoke or
9    suspend the license or licenses of any distributor,
10    retailer, or secondary distributor pursuant to the
11    procedures set forth in Section 6 and impose on the
12    distributor, secondary distributor, retailer, or person, a
13    civil penalty in an amount not to exceed the greater of
14    500% of the retail value of the cigarettes involved or
15    $5,000.
16        (2) Cigarettes that are acquired, held, owned,
17    possessed, transported in, imported into, or sold or
18    distributed in this State in violation of this Section
19    shall be deemed contraband under this Act and are subject
20    to seizure and forfeiture as provided in this Act, and all
21    such cigarettes seized and forfeited shall be destroyed or
22    maintained and used in an undercover capacity. Such
23    cigarettes shall be deemed contraband whether the
24    violation of this Section is knowing or otherwise.
25    (d) Unfair trade practices. In addition to any other
26penalties provided for in this Act, a violation of subsection

 

 

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1(a) or subsection (b) of this Section shall constitute an
2unlawful practice as provided in the Consumer Fraud and
3Deceptive Business Practices Act.
4    (d-1) Retailers who are licensed under Section 4g of the
5Cigarette Tax Act and secondary distributors shall not be
6liable under subsections (c)(1) and (d) of this Section for
7unknowingly possessing, selling, or distributing to consumers
8or users cigarettes identified in subsection (a)(1) of this
9Section if the cigarettes possessed, sold, or distributed by
10the licensed retailer were obtained from a distributor or
11secondary distributor licensed under this Act or the Cigarette
12Tax Act.
13    (d-2) Criminal Penalties. A distributor, secondary
14distributor, retailer, or person who violates subsection (a),
15or a distributor, secondary distributor, or person who violates
16subsection (b) of this Section shall be guilty of a Class 4
17felony.
18    (e) Unfair cigarette sales. For purposes of the Trademark
19Registration and Protection Act and the Counterfeit Trademark
20Act, cigarettes imported or reimported into the United States
21for sale or distribution under any trade name, trade dress, or
22trademark that is the same as, or is confusingly similar to,
23any trade name, trade dress, or trademark used for cigarettes
24manufactured in the United States for sale or distribution in
25the United States shall be presumed to have been purchased
26outside of the ordinary channels of trade.

 

 

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1    (f) General provisions.
2        (1) This Section shall be enforced by the Department;
3    provided that, at the request of the Director of Revenue or
4    the Director's duly authorized agent, the State police and
5    all local police authorities shall enforce the provisions
6    of this Section. The Attorney General has concurrent power
7    with the State's Attorney of any county to enforce this
8    Section.
9        (2) For the purpose of enforcing this Section, the
10    Director of Revenue and any agency to which the Director
11    has delegated enforcement responsibility pursuant to
12    subdivision (f)(1) may request information from any State
13    or local agency and may share information with and request
14    information from any federal agency and any agency of any
15    other state or any local agency of any other state.
16        (3) In addition to any other remedy provided by law,
17    including enforcement as provided in subdivision (f)
18    (a)(1), any person may bring an action for appropriate
19    injunctive or other equitable relief for a violation of
20    this Section; actual damages, if any, sustained by reason
21    of the violation; and, as determined by the court, interest
22    on the damages from the date of the complaint, taxable
23    costs, and reasonable attorney's fees. If the trier of fact
24    finds that the violation is flagrant, it may increase
25    recovery to an amount not in excess of 3 times the actual
26    damages sustained by reason of the violation.

 

 

HB2494 Enrolled- 50 -LRB098 08122 JLS 38213 b

1    (g) Definitions. As used in this Section:
2    "Importer" means that term as defined in 26 U.S.C. 5702(1).
3    "Package" means that term as defined in 15 U.S.C. 1332(4).
4    (h) Applicability.
5        (1) This Section does not apply to:
6            (A) cigarettes allowed to be imported or brought
7        into the United States for personal use; and
8            (B) cigarettes sold or intended to be sold as
9        duty-free merchandise by a duty-free sales enterprise
10        in accordance with the provisions of 19 U.S.C. 1555(b)
11        and any implementing regulations; except that this
12        Section shall apply to any such cigarettes that are
13        brought back into the customs territory for resale
14        within the customs territory.
15        (2) The penalties provided in this Section are in
16    addition to any other penalties imposed under other
17    provision of law.
18(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
1996-1027, eff. 7-12-10.)
 
20    (35 ILCS 135/4d)
21    Sec. 4d. Sales of cigarettes to and by retailers. In-state
22makers, manufacturers, or fabricators licensed as distributors
23under Section 4 of this Act and out-of-state makers,
24manufacturers, or fabricators holding permits under Section 7
25of this Act may not sell original packages of cigarettes to

 

 

HB2494 Enrolled- 51 -LRB098 08122 JLS 38213 b

1retailers. A retailer who is licensed under Section 4g of the
2Cigarette Tax Act may sell only original packages of cigarettes
3obtained from licensed secondary distributors or licensed
4distributors other than in-state makers, manufacturers, or
5fabricators licensed as distributors under Section 4 of this
6Act and out-of-state makers, manufacturers, or fabricators
7holding permits under Section 7 of this Act.
8(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
 
9    (35 ILCS 135/4e)
10    Sec. 4e. Sales of cigarettes to and by secondary
11distributors. In-state makers, manufacturers, and fabricators
12licensed as distributors under Section 4 of this Act and
13out-of-state makers, manufacturers, and fabricators holding
14permits under Section 7 of this Act may not sell original
15packages of cigarettes to secondary distributors. A secondary
16distributor may sell only original packages of cigarettes
17obtained from licensed distributors other than in-state
18makers, manufacturers, or fabricators licensed as distributors
19under Section 4 of this Act and out-of-state makers,
20manufacturers, or fabricators holding permits under Section 7
21of this Act. Secondary distributors may sell cigarettes to
22Illinois retailers who are licensed under Section 4g of the
23Cigarette Tax Act for resale, and are also authorized to make
24retail sales of cigarettes at the location on the secondary
25distributor's license as long as the secondary distributor

 

 

HB2494 Enrolled- 52 -LRB098 08122 JLS 38213 b

1obtains a license under Section 4g of the Cigarette Tax Act and
2sells 75% or more of the cigarettes sold at such location to
3retailers who are licensed under Section 4g of the Cigarette
4Tax Act for resale.
5    All sales by secondary distributors to Illinois retailers
6who are licensed under Section 4g of the Cigarette Tax Act must
7be made at the location on the secondary distributor's license.
8Retailers who are issued a license under Section 4g of the
9Cigarette Tax Act must take possession of all cigarettes sold
10by the secondary distributor at the secondary distributor's
11licensed address. Secondary distributors may not make
12deliveries of cigarettes to Illinois retailers who are licensed
13under Section 4g of the Cigarette Tax Act.
14    Secondary distributors may not file a claim for credit or
15refund with the State under Section 14a of this Act.
16(Source: P.A. 96-1027, eff. 7-12-10.)
 
17    (35 ILCS 135/28)  (from Ch. 120, par. 453.58)
18    Sec. 28. Any person who (a) falsely or fraudulently makes,
19forges, alters or counterfeits any stamp provided for herein,
20(b) causes or procures to be falsely or fraudulently made,
21forged, altered or counterfeited any such stamp, (c) knowingly
22and wilfully utters, publishes, passes or tenders as genuine
23any such false, altered, forged or counterfeited stamp, (d)
24falsely or fraudulently makes, forges, alters or counterfeits
25any tax imprint on an original package of cigarettes inside a

 

 

HB2494 Enrolled- 53 -LRB098 08122 JLS 38213 b

1sealed transparent wrapper, (e) causes or procures falsely or
2fraudulently to be made, forged, altered or counterfeited any
3such tax imprint or (f) knowingly and wilfully utters,
4publishes, passes or tenders as genuine any such false,
5altered, forged or counterfeited tax imprint, for the purpose
6of evading the tax imposed by this Act, shall be guilty of a
7Class 2 3 felony.
8(Source: P.A. 77-2229.)
 
9    (35 ILCS 135/30)  (from Ch. 120, par. 453.60)
10    Sec. 30. Punishment for sale or possession of unstamped
11packages of cigarettes, other than by a licensed distributor or
12transporter.
13    (a) Possession or sale of more than 9 but less than 101
14unstamped packages of cigarettes. With the exception of
15licensed distributors, licensed secondary distributors, or
16licensed transporters, as defined in Section 9c of the
17Cigarette Tax Act, any person who has in his or her possession
18or sells more than 9 but less than 101 original packages of
19contraband cigarettes is guilty of a Class A misdemeanor and a
20Class 4 felony for each subsequent offense occurring within 12
21months of a prior offense.
22    (b) Possession or sale of more than 100 but less than 251
23unstamped packages of cigarettes. With the exception of
24licensed distributors, licensed secondary distributors, or
25licensed transporters, as defined in Section 9c of the

 

 

HB2494 Enrolled- 54 -LRB098 08122 JLS 38213 b

1Cigarette Tax Act, any person who has in his or her possession
2or sells more than 100 but less than 251 original packages of
3contraband cigarettes is guilty of a Class A misdemeanor for
4the first offense and a Class 4 felony for each subsequent
5offense.
6    (c) Possession or sale of more than 250 but less than 1,001
7unstamped packages of cigarettes. With the exception of
8licensed distributors, licensed secondary distributors, or
9licensed transporters, as defined in Section 9c of the
10Cigarette Tax Act, any person who has in his or her possession
11or sells more than 250 but less than 1,001 original packages of
12contraband cigarettes is guilty of a Class 4 felony.
13    (d) Possession or sale of more than 1,000 contraband
14packages of cigarettes. With the exception of licensed
15distributors, licensed secondary distributors, or licensed
16transporters, as defined in Section 9c of the Cigarette Tax
17Act, any person who has in his or her possession or sells, more
18than 1,000 original packages of contraband cigarettes is guilty
19of a Class 3 felony.
20    (e) Any person licensed as a distributor, secondary
21distributor, or transporter, as defined in Section 9c of the
22Cigarette Tax Act, who has in his or her possession or sells
23100 or less original packages of contraband cigarettes is
24guilty of a Class A misdemeanor and a Class 4 felony for each
25subsequent offense occurring within 12 months of a prior
26offense.

 

 

HB2494 Enrolled- 55 -LRB098 08122 JLS 38213 b

1    (f) Any person licensed as a distributor, secondary
2distributor, or transporter, as defined in Section 9c of the
3Cigarette Tax Act, who has in his or her possession or sells
4more than 100 original packages of contraband cigarettes is
5guilty of a Class 4 felony.
6    (g) Notwithstanding subsections (e) through (f), licensed
7distributors and transporters, as defined in Section 9c of the
8Cigarette Tax Act, may possess unstamped packages of
9cigarettes. Notwithstanding subsections (e) through (f),
10licensed distributors may possess cigarettes that bear a tax
11stamp of another state or taxing jurisdiction. Notwithstanding
12subsections (e) through (f), a licensed distributor or licensed
13secondary distributor may possess contraband cigarettes
14returned to the distributor or licensed secondary distributor
15by a retailer if the distributor or licensed secondary
16distributor immediately conducts an inventory of the
17cigarettes being returned, the distributor or licensed
18secondary distributor and the retailer returning the
19contraband cigarettes sign the inventory, the distributor or
20licensed secondary distributor provides a copy of the signed
21inventory to the retailer, and the distributor or licensed
22secondary distributor retains the inventory in its books and
23records and promptly notifies the Department of Revenue.
24    (h) Notwithstanding subsections (a) through (d) of this
25Section, a retailer unknowingly possessing contraband
26cigarettes obtained from a licensed distributor or licensed

 

 

HB2494 Enrolled- 56 -LRB098 08122 JLS 38213 b

1secondary distributor or knowingly possessing contraband
2cigarettes obtained from a licensed distributor or licensed
3secondary distributor is not subject to penalties under this
4Section if the retailer, within 48 hours after discovering that
5the cigarettes are contraband cigarettes, excluding Saturdays,
6Sundays, and holidays: (i) notifies the Department and the
7licensed distributor or licensed secondary distributor from
8whom the cigarettes were obtained, orally and in writing, that
9he or she possesses contraband cigarettes obtained from a
10licensed distributor or licensed secondary distributor; (ii)
11places the contraband cigarettes in one or more containers and
12seals those containers; and (iii) places on the containers the
13following or similar language: "Contraband Cigarettes. Not For
14Sale." All contraband cigarettes in the possession of a
15retailer remain subject to forfeiture under the provisions of
16this Act.
17    Any retailer who knowingly possesses packages of
18cigarettes with a counterfeit stamp with intent to sell is
19guilty of a Class 2 felony. Any retailer who knowingly
20possesses unstamped packages of cigarettes with intent to sell
21is guilty of a Class 4 felony. A retailer shall not be liable
22for unknowingly possessing, selling, or distributing to
23consumers cigarettes that contain an old stamp if the correct
24tax was collected at the point of sale and the cigarettes were
25obtained from a distributor licensed under this Act.
26(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
 

 

 

HB2494 Enrolled- 57 -LRB098 08122 JLS 38213 b

1    Section 20. The Tobacco Products Tax Act of 1995 is amended
2by changing Sections 10-5, 10-20, 10-25, 10-35, and 10-50 and
3by adding Sections 10-21, 10-22, 10-37, and 10-53 as follows:
 
4    (35 ILCS 143/10-5)
5    Sec. 10-5. Definitions. For purposes of this Act:
6    "Business" means any trade, occupation, activity, or
7enterprise engaged in, at any location whatsoever, for the
8purpose of selling tobacco products.
9    "Cigarette" has the meaning ascribed to the term in Section
101 of the Cigarette Tax Act.
11    "Contraband little cigar" means:
12        (1) packages of little cigars containing 20 or 25
13    little cigars that do not bear a required tax stamp under
14    this Act;
15        (2) packages of little cigars containing 20 or 25
16    little cigars that bear a fraudulent, imitation, or
17    counterfeit tax stamp;
18        (3) packages of little cigars containing 20 or 25
19    little cigars that are improperly tax stamped, including
20    packages of little cigars that bear only a tax stamp of
21    another state or taxing jurisdiction; or
22        (4) packages of little cigars containing other than 20
23    or 25 little cigars in the possession of a distributor,
24    retailer or wholesaler, unless the distributor, retailer,

 

 

HB2494 Enrolled- 58 -LRB098 08122 JLS 38213 b

1    or wholesaler possesses, or produces within the time frame
2    provided in Section 10-27 or 10-28 of this Act, an invoice
3    from a stamping distributor, distributor, or wholesaler
4    showing that the tax on the packages has been or will be
5    paid.
6    "Correctional Industries program" means a program run by a
7State penal institution in which residents of the penal
8institution produce tobacco products for sale to persons
9incarcerated in penal institutions or resident patients of a
10State operated mental health facility.
11    "Department" means the Illinois Department of Revenue.
12    "Distributor" means any of the following:
13        (1) Any manufacturer or wholesaler in this State
14    engaged in the business of selling tobacco products who
15    sells, exchanges, or distributes tobacco products to
16    retailers or consumers in this State.
17        (2) Any manufacturer or wholesaler engaged in the
18    business of selling tobacco products from without this
19    State who sells, exchanges, distributes, ships, or
20    transports tobacco products to retailers or consumers
21    located in this State, so long as that manufacturer or
22    wholesaler has or maintains within this State, directly or
23    by subsidiary, an office, sales house, or other place of
24    business, or any agent or other representative operating
25    within this State under the authority of the person or
26    subsidiary, irrespective of whether the place of business

 

 

HB2494 Enrolled- 59 -LRB098 08122 JLS 38213 b

1    or agent or other representative is located here
2    permanently or temporarily.
3        (3) Any retailer who receives tobacco products on which
4    the tax has not been or will not be paid by another
5    distributor.
6    "Distributor" does not include any person, wherever
7resident or located, who makes, manufactures, or fabricates
8tobacco products as part of a Correctional Industries program
9for sale to residents incarcerated in penal institutions or
10resident patients of a State operated mental health facility.
11    "Little cigar" means and includes any roll, made wholly or
12in part of tobacco, where such roll has an integrated cellulose
13acetate filter and weighs less than 4 pounds per thousand and
14the wrapper or cover of which is made in whole or in part of
15tobacco.
16    "Manufacturer" means any person, wherever resident or
17located, who manufactures and sells tobacco products, except a
18person who makes, manufactures, or fabricates tobacco products
19as a part of a Correctional Industries program for sale to
20persons incarcerated in penal institutions or resident
21patients of a State operated mental health facility.
22    Beginning on January 1, 2013, "moist snuff" means any
23finely cut, ground, or powdered tobacco that is not intended to
24be smoked, but shall not include any finely cut, ground, or
25powdered tobacco that is intended to be placed in the nasal
26cavity.

 

 

HB2494 Enrolled- 60 -LRB098 08122 JLS 38213 b

1    "Person" means any natural individual, firm, partnership,
2association, joint stock company, joint venture, limited
3liability company, or public or private corporation, however
4formed, or a receiver, executor, administrator, trustee,
5conservator, or other representative appointed by order of any
6court.
7    "Place of business" means and includes any place where
8tobacco products are sold or where tobacco products are
9manufactured, stored, or kept for the purpose of sale or
10consumption, including any vessel, vehicle, airplane, train,
11or vending machine.
12    "Retailer" means any person in this State engaged in the
13business of selling tobacco products to consumers in this
14State, regardless of quantity or number of sales.
15    "Sale" means any transfer, exchange, or barter in any
16manner or by any means whatsoever for a consideration and
17includes all sales made by persons.
18    "Stamp" or "stamps" mean the indicia required to be affixed
19on a package of little cigars that evidence payment of the tax
20on packages of little cigars containing 20 or 25 little cigars
21under Section 10-10 of this Act. These stamps shall be the same
22stamps used for cigarettes under the Cigarette Tax Act.
23    "Stamping distributor" means a distributor licensed under
24this Act and also licensed as a distributor under the Cigarette
25Tax Act or Cigarette Use Tax Act.
26    "Tobacco products" means any cigars, including little

 

 

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1cigars; cheroots; stogies; periques; granulated, plug cut,
2crimp cut, ready rubbed, and other smoking tobacco; snuff
3(including moist snuff) or snuff flour; cavendish; plug and
4twist tobacco; fine-cut and other chewing tobaccos; shorts;
5refuse scraps, clippings, cuttings, and sweeping of tobacco;
6and other kinds and forms of tobacco, prepared in such manner
7as to be suitable for chewing or smoking in a pipe or
8otherwise, or both for chewing and smoking; but does not
9include cigarettes as defined in Section 1 of the Cigarette Tax
10Act or tobacco purchased for the manufacture of cigarettes by
11cigarette distributors and manufacturers defined in the
12Cigarette Tax Act and persons who make, manufacture, or
13fabricate cigarettes as a part of a Correctional Industries
14program for sale to residents incarcerated in penal
15institutions or resident patients of a State operated mental
16health facility.
17    "Wholesale price" means the established list price for
18which a manufacturer sells tobacco products to a distributor,
19before the allowance of any discount, trade allowance, rebate,
20or other reduction. In the absence of such an established list
21price, the manufacturer's invoice price at which the
22manufacturer sells the tobacco product to unaffiliated
23distributors, before any discounts, trade allowances, rebates,
24or other reductions, shall be presumed to be the wholesale
25price.
26    "Wholesaler" means any person, wherever resident or

 

 

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1located, engaged in the business of selling tobacco products to
2others for the purpose of resale. "Wholesaler", when used in
3this Act, does not include a person licensed as a distributor
4under Section 10-20 of this Act unless expressly stated in this
5Act.
6(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
 
7    (35 ILCS 143/10-20)
8    Sec. 10-20. Distributor's Licenses. It shall be unlawful
9for any person to engage in business as a distributor of
10tobacco products within the meaning of this Act without first
11having obtained a license to do so from the Department.
12Application for that license shall be made to the Department in
13a form prescribed and furnished by the Department. Each
14applicant for a license shall furnish to the Department on a
15form, signed and verified by the applicant, the following
16information:
17        (1) The name of the applicant.
18        (2) The address of the location at which the applicant
19    proposes to engage in business as a distributor of tobacco
20    products.
21        (3) Other information the Department may reasonably
22    require.
23    Except as otherwise provided in this Section, every
24applicant who is required to procure a distributor's license
25shall file with his or her application a joint and several

 

 

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1bond. The bond shall be executed to the Department of Revenue,
2with good and sufficient surety or sureties residing or
3licensed to do business within the State of Illinois,
4conditioned upon the true and faithful compliance by the
5licensee with all of the provisions of this Act. The Department
6shall fix the amount of the bond for each applicant, taking
7into consideration the amount of money expected to become due
8from the applicant under this Act. The amount of bond required
9by the Department shall be an amount that, in its opinion, will
10protect the State of Illinois against failure to pay the amount
11that may become due from the applicant under this Act, but the
12amount of the security required by the Department shall not
13exceed 3 times the amount of the applicant's average monthly
14tax liability, or $50,000, whichever amount is lower. The bond,
15a reissue, or a substitute shall be kept in full force and
16effect during the entire period covered by the license. A
17separate application for license shall be made, and bond filed,
18for each place of business at which a person who is required to
19procure a distributor's license proposes to engage in business
20as a distributor under this Act.
21    The Department, upon receipt of an application and bond in
22proper form, shall issue to the applicant a license, in a form
23prescribed by the Department, which shall permit the applicant
24to whom it is issued to engage in business as a distributor at
25the place shown on his or her application. The license shall be
26issued by the Department without charge or cost to the

 

 

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1applicant. No license issued under this Act is transferable or
2assignable. The license shall be conspicuously displayed in the
3place of business conducted by the licensee under the license.
4    The bonding requirement in this Section does not apply to
5an applicant for a distributor's license who is already bonded
6under the Cigarette Tax Act or the Cigarette Use Tax Act.
7Licenses issued by the Department under this Act shall be valid
8for a period not to exceed one year after issuance unless
9sooner revoked, canceled, or suspended as provided in this Act.
10    No license shall be issued to any person who is in default
11to the State of Illinois for moneys due under this Act or any
12other tax Act administered by the Department.
13    The Department may, in its discretion, upon application,
14authorize the payment of the tax imposed under Section 10-10 by
15any distributor or manufacturer not otherwise subject to the
16tax imposed under this Act who, to the satisfaction of the
17Department, furnishes adequate security to ensure payment of
18the tax. The distributor or manufacturer shall be issued,
19without charge, a license to remit the tax. When so authorized,
20it shall be the duty of the distributor or manufacturer to
21remit the tax imposed upon the wholesale price of tobacco
22products sold or otherwise disposed of to retailers or
23consumers located in this State, in the same manner and subject
24to the same requirements as any other distributor or
25manufacturer licensed under this Act.
26    The Department may revoke, suspend, or cancel the license

 

 

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1of a distributor of roll-your-own tobacco (as that term is used
2in Section 10 of the Tobacco Product Manufacturers' Escrow Act)
3under this Act if the tobacco product manufacturer, as defined
4in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
5that made or sold the roll-your-own tobacco has failed to
6become a participating manufacturer, as defined in subdivision
7(a)(1) of Section 15 of the Tobacco Product Manufacturers'
8Escrow Act, or has failed to create a qualified escrow fund for
9any roll-your-own tobacco manufactured by the tobacco product
10manufacturer and sold in this State or otherwise failed to
11bring itself into compliance with subdivision (a)(2) of Section
1215 of the Tobacco Product Manufacturers' Escrow Act.
13    Any person aggrieved by any decision of the Department
14under this Section may, within 20 days after notice of that
15decision, protest and request a hearing, whereupon the
16Department must give notice to that person of the time and
17place fixed for the hearing and must hold a hearing in
18conformity with the provisions of this Act and then issue its
19final administrative decision in the matter to that person. In
20the absence of such a protest within 20 days, the Department's
21decision becomes final without any further determination being
22made or notice given.
23(Source: P.A. 92-231, eff. 8-2-01; 92-737, eff. 7-25-02.)
 
24    (35 ILCS 143/10-21 new)
25    Sec. 10-21. Retailer's license. Beginning on January 1,

 

 

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12016, no person may engage in business as a retailer of tobacco
2products in this State without first having obtained a license
3from the Department. Application for license shall be made to
4the Department, by electronic means, in a form prescribed by
5the Department. Each applicant for a license under this Section
6shall furnish to the Department, in an electronic format
7established by the Department, the following information:
8        (1) the name and address of the applicant;
9        (2) the address of the location at which the applicant
10    proposes to engage in business as a retailer of tobacco
11    products in this State;
12        (3) such other additional information as the
13    Department may lawfully require by its rules and
14    regulations.
15    The annual license fee payable to the Department for each
16retailer's license shall be $75. The fee will be deposited into
17the Tax Compliance and Administration Fund and shall be used
18for the cost of tobacco retail inspection and contraband
19tobacco and tobacco smuggling with at least two-thirds of the
20money being used for contraband tobacco and tobacco smuggling
21operations and enforcement.
22    Each applicant for license shall pay such fee to the
23Department at the time of submitting its application for
24license to the Department. The Department shall require an
25applicant for a license under this Section to electronically
26file and pay the fee.

 

 

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1    A separate annual license fee shall be paid for each place
2of business at which a person who is required to procure a
3retailer's license under this Section proposes to engage in
4business as a retailer in Illinois under this Act.
5    The following are ineligible to receive a retailer's
6license under this Act:
7        (1) a person who has been convicted of a felony under
8    any federal or State law for smuggling cigarettes or
9    tobacco products or tobacco tax evasion, if the Department,
10    after investigation and a hearing if requested by the
11    applicant, determines that such person has not been
12    sufficiently rehabilitated to warrant the public trust;
13    and
14        (2) a corporation, if any officer, manager or director
15    thereof, or any stockholder or stockholders owning in the
16    aggregate more than 5% of the stock of such corporation,
17    would not be eligible to receive a license under this Act
18    for any reason.
19    The Department, upon receipt of an application and license
20fee, in proper form, from a person who is eligible to receive a
21retailer's license under this Act, shall issue to such
22applicant a license in form as prescribed by the Department,
23which license shall permit the applicant to which it is issued
24to engage in business as a retailer under this Act at the place
25shown in his application. All licenses issued by the Department
26under this Section shall be valid for a period not to exceed

 

 

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1one year after issuance unless sooner revoked, canceled or
2suspended as provided in this Act. No license issued under this
3Section is transferable or assignable. Such license shall be
4conspicuously displayed in the place of business conducted by
5the licensee in Illinois under such license. A person who
6obtains a license as a retailer who ceases to do business as
7specified in the license, or who never commenced business, or
8who obtains a distributor's license, or whose license is
9suspended or revoked, shall immediately surrender the license
10to the Department. The Department shall not issue a license to
11a retailer unless the retailer is also validly registered under
12the Retailers Occupation Tax Act.
13    A retailer as defined under this Act need not obtain an
14additional license under this Act, but shall be deemed to be
15sufficiently licensed by virtue of his being properly licensed
16as a retailer under Section 4g of the Cigarette Tax Act.
17    Any person aggrieved by any decision of the Department
18under this subsection may, within 30 days after notice of the
19decision, protest and request a hearing. Upon receiving a
20request for a hearing, the Department shall give notice to the
21person requesting the hearing of the time and place fixed for
22the hearing and shall hold a hearing in conformity with the
23provisions of this Act and then issue its final administrative
24decision in the matter to that person. In the absence of a
25protest and request for a hearing within 30 days, the
26Department's decision shall become final without any further

 

 

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1determination being made or notice given.
 
2    (35 ILCS 143/10-22 new)
3    Sec. 10-22. Purchases of tobacco products by licensed
4retailers. A person who possesses a retailer's license under
5Section 10-21 of this Act shall obtain tobacco products for
6sale only from a licensed distributor or licensed secondary
7distributor.
 
8    (35 ILCS 143/10-25)
9    Sec. 10-25. License actions.
10    (a) The Department may, after notice and a hearing, revoke,
11cancel, or suspend the license of any distributor or retailer
12who violates any of the provisions of this Act. The notice
13shall specify the alleged violation or violations upon which
14the revocation, cancellation, or suspension proceeding is
15based.
16    (b) The Department may revoke, cancel, or suspend the
17license of any distributor for a violation of the Tobacco
18Product Manufacturers' Escrow Enforcement Act as provided in
19Section 20 of that Act.
20    (c) If the retailer has a training program that facilitates
21compliance with minimum-age tobacco laws, the Department shall
22suspend for 3 days the license of that retailer for a fourth or
23subsequent violation of the Prevention of Tobacco Use by Minors
24and Sale and Distribution of Tobacco Products Act, as provided

 

 

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1in subsection (a) of Section 2 of that Act. For the purposes of
2this Section, any violation of subsection (a) of Section 2 of
3the Prevention of Tobacco Use by Minors and Sale and
4Distribution of Tobacco Products Act occurring at the
5retailer's licensed location, during a 24-month period, shall
6be counted as a violation against the retailer.
7    If the retailer does not have a training program that
8facilitates compliance with minimum-age tobacco laws, the
9Department shall suspend for 3 days the license of that
10retailer for a second violation of the Prevention of Tobacco
11Use by Minors and Sale and Distribution of Tobacco Products
12Act, as provided in subsection (a-5) of Section 2 of that Act.
13    If the retailer does not have a training program that
14facilitates compliance with minimum-age tobacco laws, the
15Department shall suspend for 7 days the license of that
16retailer for a third violation of the Prevention of Tobacco Use
17by Minors and Sale and Distribution of Tobacco Products Act, as
18provided in subsection (a-5) of Section 2 of that Act.
19    If the retailer does not have a training program that
20facilitates compliance with minimum-age tobacco laws, the
21Department shall suspend for 30 days the license of a retailer
22for a fourth or subsequent violation of the Prevention of
23Tobacco Use by Minors and Sale and Distribution of Tobacco
24Products Act, as provided in subsection (a-5) of Section 2 of
25that Act.
26    A training program that facilitates compliance with

 

 

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1minimum-age tobacco laws must include at least the following
2elements: (i) it must explain that only individuals displaying
3valid identification demonstrating that they are 18 years of
4age or older shall be eligible to purchase cigarettes or
5tobacco products; (ii) it must explain where a clerk can check
6identification for a date of birth; and (iii) it must explain
7the penalties that a clerk and retailer are subject to for
8violations of the Prevention of Tobacco Use by Minors and Sale
9and Distribution of Tobacco Products Act.
10    (d) The Department may, by application to any circuit
11court, obtain an injunction restraining any person who engages
12in business as a distributor of tobacco products without a
13license (either because his or her license has been revoked,
14canceled, or suspended or because of a failure to obtain a
15license in the first instance) from engaging in that business
16until that person, as if that person were a new applicant for a
17license, complies with all of the conditions, restrictions, and
18requirements of Section 10-20 of this Act and qualifies for and
19obtains a license. Refusal or neglect to obey the order of the
20court may result in punishment for contempt.
21(Source: P.A. 92-737, eff. 7-25-02.)
 
22    (35 ILCS 143/10-35)
23    Sec. 10-35. Record keeping.
24    (a) Every distributor, as defined in Section 10-5, shall
25keep complete and accurate records of tobacco products held,

 

 

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1purchased, manufactured, brought in or caused to be brought in
2from without the State, and tobacco products sold, or otherwise
3disposed of, and shall preserve and keep all invoices, bills of
4lading, sales records, and copies of bills of sale, the
5wholesale price for tobacco products sold or otherwise disposed
6of, an inventory of tobacco products prepared as of December 31
7of each year or as of the last day of the distributor's fiscal
8year if he or she files federal income tax returns on the basis
9of a fiscal year, and other pertinent papers and documents
10relating to the manufacture, purchase, sale, or disposition of
11tobacco products. Every sales invoice issued by a licensed
12distributor to a retailer in this State shall contain the
13distributor's Tobacco Products License number.
14    (b) Every retailer, as defined in Section 10-5, shall keep
15complete and accurate records of tobacco products held,
16purchased, sold, or otherwise disposed of, and shall preserve
17and keep all invoices, bills of lading, sales records, and
18copies of bills of sale, returns and other pertinent papers and
19documents relating to the purchase, sale, or disposition of
20tobacco products. Such records need not be maintained on the
21licensed premises, but must be maintained in the State of
22Illinois; however, if access is available electronically, the
23records may be maintained out of state. However, all original
24invoices or copies thereof covering purchases of tobacco
25products must be retained on the licensed premises for a period
26of 90 days after such purchase, unless the Department has

 

 

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1granted a waiver in response to a written request in cases
2where records are kept at a central business location within
3the State of Illinois or in cases where records that are
4available electronically are maintained out of state.
5    (c) Books, records, papers, and documents that are required
6by this Act to be kept shall, at all times during the usual
7business hours of the day, be subject to inspection by the
8Department or its duly authorized agents and employees. The
9books, records, papers, and documents for any period with
10respect to which the Department is authorized to issue a notice
11of tax liability shall be preserved until the expiration of
12that period.
13(Source: P.A. 89-21, eff. 6-6-95.)
 
14    (35 ILCS 143/10-37 new)
15    Sec. 10-37. Proof of payment of tax imposed by this Act.
16Every licensed distributor of tobacco products in this State is
17required to show proof of the tax having been paid as required
18by this Act by displaying its Tobacco Products License number
19on every sales invoice issued to a retailer in this State. No
20retailer shall possess tobacco products without either a proper
21invoice indicating that the tobacco products tax was paid by a
22distributor for the tobacco products in the retailer's
23possession or other proof that the tax was paid by the retailer
24if it has purchased tobacco products on which tax has not been
25paid as required by this Act. Failure to comply with the

 

 

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1provisions of this paragraph may be grounds for revocation of a
2distributor's or retailer's license in accordance with Section
310-25 of this Act or Section 6 of the Cigarette Tax Act. In
4addition, the Department may impose a civil penalty not to
5exceed $1,000 for each violation, which shall be deposited into
6the Tax Compliance and Administration Fund.
 
7    (35 ILCS 143/10-50)
8    Sec. 10-50. Violations and penalties. When the amount due
9is under $300, any distributor who fails to file a return,
10willfully wilfully fails or refuses to make any payment to the
11Department of the tax imposed by this Act, or files a
12fraudulent return, or any officer or agent of a corporation
13engaged in the business of distributing tobacco products to
14retailers and consumers located in this State who signs a
15fraudulent return filed on behalf of the corporation, or any
16accountant or other agent who knowingly enters false
17information on the return of any taxpayer under this Act is
18guilty of a Class 4 felony.
19    Any person who violates any provision of Sections Section
2010-20, 10-21, or 10-22 of this Act, fails to keep books and
21records as required under this Act, or willfully wilfully
22violates a rule or regulation of the Department for the
23administration and enforcement of this Act is guilty of a Class
244 felony. A person commits a separate offense on each day that
25he or she engages in business in violation of Sections Section

 

 

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110-20, 10-21, or 10-22 of this Act.
2    When the amount due is under $300, any person who accepts
3money that is due to the Department under this Act from a
4taxpayer for the purpose of acting as the taxpayer's agent to
5make the payment to the Department, but who fails to remit the
6payment to the Department when due, is guilty of a Class 4
7felony.
8    Any person who violates any provision of Sections 10-20,
910-21 and 10-22 of this Act, fails to keep books and records as
10required under this Act, or willfully violates a rule or
11regulation of the Department for the administration and
12enforcement of this Act is guilty of a business offense and may
13be fined up to $5,000. A person commits a separate offense on
14each day that he or she engages in business in violation of
15Sections 10-20, 10-21 and 10-22 of this Act.
16    When the amount due is $300 or more, any distributor who
17files, or causes to be filed, a fraudulent return, or any
18officer or agent of a corporation engaged in the business of
19distributing tobacco products to retailers and consumers
20located in this State who files or causes to be filed or signs
21or causes to be signed a fraudulent return filed on behalf of
22the corporation, or any accountant or other agent who knowingly
23enters false information on the return of any taxpayer under
24this Act is guilty of a Class 3 felony.
25    When the amount due is $300 or more, any person engaged in
26the business of distributing tobacco products to retailers and

 

 

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1consumers located in this State who fails to file a return,
2willfully wilfully fails or refuses to make any payment to the
3Department of the tax imposed by this Act, or accepts money
4that is due to the Department under this Act from a taxpayer
5for the purpose of acting as the taxpayer's agent to make
6payment to the Department but fails to remit such payment to
7the Department when due is guilty of a Class 3 felony.
8    When the amount due is under $300, any retailer who fails
9to file a return, willfully fails or refuses to make any
10payment to the Department of the tax imposed by this Act, or
11files a fraudulent return, or any officer or agent of a
12corporation engaged in the retail business of selling tobacco
13products to purchasers of tobacco products for use and
14consumption located in this State who signs a fraudulent return
15filed on behalf of the corporation, or any accountant or other
16agent who knowingly enters false information on the return of
17any taxpayer under this Act is guilty of a Class A misdemeanor
18for a first offense and a Class 4 felony for each subsequent
19offense.
20    When the amount due is $300 or more, any retailer who fails
21to file a return, willfully fails or refuses to make any
22payment to the Department of the tax imposed by this Act, or
23files a fraudulent return, or any officer or agent of a
24corporation engaged in the retail business of selling tobacco
25products to purchasers of tobacco products for use and
26consumption located in this State who signs a fraudulent return

 

 

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1filed on behalf of the corporation, or any accountant or other
2agent who knowingly enters false information on the return of
3any taxpayer under this Act is guilty of a Class 4 felony.
4    Any person whose principal place of business is in this
5State and who is charged with a violation under this Section
6shall be tried in the county where his or her principal place
7of business is located unless he or she asserts a right to be
8tried in another venue. If the taxpayer does not have his or
9her principal place of business in this State, however, the
10hearing must be held in Sangamon County unless the taxpayer
11asserts a right to be tried in another venue.
12    Any taxpayer or agent of a taxpayer who with the intent to
13defraud purports to make a payment due to the Department by
14issuing or delivering a check or other order upon a real or
15fictitious depository for the payment of money, knowing that it
16will not be paid by the depository, is guilty of a deceptive
17practice in violation of Section 17-1 of the Criminal Code of
182012.
19    A prosecution for a violation described in this Section may
20be commenced within 3 years after the commission of the act
21constituting the violation.
22(Source: P.A. 97-1150, eff. 1-25-13.)
 
23    (35 ILCS 143/10-53 new)
24    Sec. 10-53. Acting as a retailer of tobacco products
25without a license. Any person who knowingly acts as a retailer

 

 

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1of tobacco products in this State without first having obtained
2a license to do so in compliance with Section 10-21 of this Act
3or a license in compliance with Section 4g of the Cigarette Tax
4Act shall be guilty of a Class A misdemeanor for the first
5offense and a Class 4 felony for a second or subsequent
6offense. Each day such person operates as a retailer without a
7license constitutes a separate offense.
 
8    Section 25. The Prevention of Tobacco Use by Minors and
9Sale and Distribution of Tobacco Products Act is amended by
10changing Sections 1 and 2 as follows:
 
11    (720 ILCS 675/1)  (from Ch. 23, par. 2357)
12    Sec. 1. Prohibition on sale to and possession of tobacco by
13minors; prohibition on the distribution of tobacco samples to
14any person; use of identification cards; vending machines;
15lunch wagons; out-of-package sales.
16    (a) No minor under 18 years of age shall buy any tobacco
17product. No person shall sell, buy for, distribute samples of
18or furnish any tobacco product to any minor under 18 years of
19age.
20    (a-5) No minor under 16 years of age may sell any tobacco
21product at a retail establishment selling tobacco products.
22This subsection does not apply to a sales clerk in a
23family-owned business which can prove that the sales clerk is
24in fact a son or daughter of the owner.

 

 

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1    (a-6) No minor under 18 years of age in the furtherance or
2facilitation of obtaining any tobacco product shall display or
3use a false or forged identification card or transfer, alter,
4or deface an identification card.
5     (a-7) No minor under 18 years of age shall possess any
6cigar, cigarette, smokeless tobacco, or tobacco in any of its
7forms.
8    (a-8) A person shall not distribute without charge samples
9of any tobacco product to any other person, regardless of age:
10        (1) within a retail establishment selling tobacco
11    products, unless the retailer has verified the purchaser's
12    age with a government issued identification;
13        (2) from a lunch wagon; or
14        (3) on a public way as a promotion or advertisement of
15    a tobacco manufacturer or tobacco product.
16    This subsection (a-8) does not apply to the distribution of
17a tobacco product sample in any adult-only facility.
18    (a-9) For the purpose of this Section:
19        "Adult-only facility means a facility or restricted
20    area (whether open-air or enclosed) where the operator
21    ensures or has a reasonable basis to believe (such as by
22    checking identification as required under State law, or by
23    checking the identification of any person appearing to be
24    under the age of 27) that no person under legal age is
25    present. A facility or restricted area need not be
26    permanently restricted to persons under legal age to

 

 

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1    constitute an adult-only facility, provided that the
2    operator ensures or has a reasonable basis to believe that
3    no person under legal age is present during the event or
4    time period in question.
5        "Lunch wagon" means a mobile vehicle designed and
6    constructed to transport food and from which food is sold
7    to the general public.
8        "Smokeless tobacco" means any tobacco products that
9    are suitable for dipping or chewing.
10        "Tobacco product" means any cigar, cigarette,
11    smokeless tobacco, or tobacco in any of its forms.
12    (b) Tobacco products listed in this Section may be sold
13through a vending machine only if such tobacco products are not
14placed together with any non-tobacco product, other than
15matches, in the vending machine and the vending machine is in
16any of the following locations:
17        (1) (Blank).
18        (2) Places to which minors under 18 years of age are
19    not permitted access.
20        (3) Places where alcoholic beverages are sold and
21    consumed on the premises and vending machine operation is
22    under the direct supervision of the owner or manager.
23        (4) (Blank).
24        (5) Places where the vending machine can only be
25    operated by the owner or an employee over age 18 either
26    directly or through a remote control device if the device

 

 

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1    is inaccessible to all customers.
2    (c) (Blank).
3    (d) The sale or distribution by any person of a tobacco
4product in this Section, including but not limited to a single
5or loose cigarette, that is not contained within a sealed
6container, pack, or package as provided by the manufacturer,
7which container, pack, or package bears the health warning
8required by federal law, is prohibited.
9    (e) It is not a violation of this Act for a person under 18
10years of age to purchase or possess a cigar, cigarette,
11smokeless tobacco or tobacco in any of its forms if the person
12under the age of 18 purchases or is given the cigar, cigarette,
13smokeless tobacco or tobacco in any of its forms from a retail
14seller of tobacco products or an employee of the retail seller
15pursuant to a plan or action to investigate, patrol, or
16otherwise conduct a "sting operation" or enforcement action
17against a retail seller of tobacco products or a person
18employed by the retail seller of tobacco products or on any
19premises authorized to sell tobacco products to determine if
20tobacco products are being sold or given to persons under 18
21years of age if the "sting operation" or enforcement action is
22approved by, conducted by, or conducted on behalf of the
23Department of State Police, the county sheriff, a municipal
24police department, the Department of Revenue, the Department of
25Public Health, or a local health department. The results of any
26sting operation or enforcement action, including the name of

 

 

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1the clerk, shall be provided to the retail seller within 7
2business days.
3(Source: P.A. 95-905, eff. 1-1-09; 96-179, eff. 8-10-09;
496-446, eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
5    (720 ILCS 675/2)  (from Ch. 23, par. 2358)
6    Sec. 2. Penalties.
7    (a) Any person who violates subsection (a) or (a-5) of
8Section 1 or Section 1.5 of this Act is guilty of a petty
9offense. For the first offense in a 24-month period, the person
10shall be fined $200 if his or her employer has a training
11program that facilitates compliance with minimum-age tobacco
12laws. For the second offense in a 24-month period, the person
13shall be fined $400 if his or her employer has a training
14program that facilitates compliance with minimum-age tobacco
15laws. For the third offense in a 24-month period, the person
16shall be fined $600 if his or her employer has a training
17program that facilitates compliance with minimum-age tobacco
18laws. For the fourth or subsequent offense in a 24-month
19period, the person shall be fined $800 if his or her employer
20has a training program that facilitates compliance with
21minimum-age tobacco laws. For the purposes of this subsection,
22the 24-month period shall begin with the person's first
23violation of the Act. The penalties in this subsection are in
24addition to any other penalties prescribed under the Cigarette
25Tax Act and the Tobacco Products Tax Act of 1995.

 

 

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1    (a-5) Any person who violates subsection (a) or (a-5) of
2Section 1 or Section 1.5 of this Act is guilty of a petty
3offense. For the first offense, the retailer shall be fined
4$200 if it does not have a training program that facilitates
5compliance with minimum-age tobacco laws. For the second
6offense, the retailer shall be fined $400 if it does not have a
7training program that facilitates compliance with minimum-age
8tobacco laws. For the third offense, the retailer shall be
9fined $600 if it does not have a training program that
10facilitates compliance with minimum-age tobacco laws. For the
11fourth or subsequent offense in a 24-month period, the retailer
12shall be fined $800 if it does not have a training program that
13facilitates compliance with minimum-age tobacco laws. For the
14purposes of this subsection, the 24-month period shall begin
15with the person's first violation of the Act. The penalties in
16this subsection are in addition to any other penalties
17prescribed under the Cigarette Tax Act and the Tobacco Products
18Tax Act of 1995.
19    (a-6) For the purpose of this Act, a training program that
20facilitates compliance with minimum-age tobacco laws must
21include at least the following elements: (i) it must explain
22that only individuals displaying valid identification
23demonstrating that they are 18 years of age or older shall be
24eligible to purchase cigarettes or tobacco products; (ii) it
25must explain where a clerk can check identification for a date
26of birth; and (iii) it must explain the penalties that a clerk

 

 

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1and retailer are subject to for violations of the Prevention of
2Tobacco Use by Minors and Sale and Distribution of Tobacco
3Products Act.
4Any person who violates subsection (a), (a-5), or (a-6) of
5Section 1 or Section 1.5 of this Act is guilty of a petty
6offense and for the first offense shall be fined $200, $400 for
7the second offense in a 12-month period, and $600 for the third
8or any subsequent offense in a 12-month period.
9    (b) If a minor violates subsection (a-7) of Section 1 he or
10she is guilty of a petty offense and the court may impose a
11sentence of 25 15 hours of community service and or a fine of
12$50 $25 for a first violation. If a minor violates subsection
13(a-6) of Section 1, he or she is guilty of a Class A
14misdemeanor.
15    (c) A second violation by a minor of subsection (a-7) of
16Section 1 that occurs within 12 months after the first
17violation is punishable by a fine of $75 $50 and 50 25 hours of
18community service.
19    (d) A third or subsequent violation by a minor of
20subsection (a-7) of Section 1 that occurs within 12 months
21after the first violation is punishable by a $200 $100 fine and
2250 30 hours of community service.
23    (e) Any second or subsequent violation not within the
2412-month time period after the first violation is punishable as
25provided for a first violation.
26    (f) If a minor is convicted of or placed on supervision for

 

 

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1a violation of subsection (a-6) or (a-7) of Section 1, the
2court may, in its discretion, and upon recommendation by the
3State's Attorney, order that minor and his or her parents or
4legal guardian to attend a smoker's education or youth
5diversion program if that program is available in the
6jurisdiction where the offender resides. Attendance at a
7smoker's education or youth diversion program shall be
8time-credited against any community service time imposed for
9any first violation of subsection (a-7) of Section 1. In
10addition to any other penalty that the court may impose for a
11violation of subsection (a-7) of Section 1, the court, upon
12request by the State's Attorney, may in its discretion require
13the offender to remit a fee for his or her attendance at a
14smoker's education or youth diversion program.
15    (g) For purposes of this Section, "smoker's education
16program" or "youth diversion program" includes, but is not
17limited to, a seminar designed to educate a person on the
18physical and psychological effects of smoking tobacco products
19and the health consequences of smoking tobacco products that
20can be conducted with a locality's youth diversion program.
21    (h) All moneys collected as fines for violations of
22subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
23distributed in the following manner:
24        (1) one-half of each fine shall be distributed to the
25    unit of local government or other entity that successfully
26    prosecuted the offender; and

 

 

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1        (2) one-half shall be remitted to the State to be used
2    for enforcing this Act.
3    Any violation of subsection (a) or (a-5) of Section 1 or
4Section 1.5 shall be reported to the Department of Revenue
5within 7 business days.
6(Source: P.A. 98-350, eff. 1-1-14.)
 
7    Section 99. Effective date. This Act takes effect January
81, 2016.