Full Text of HB2494 98th General Assembly
HB2494enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Revenue Law of the
Civil | 5 | | Administrative Code of Illinois is amended by changing Section | 6 | | 2505-380 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 | 9 | | a certificate of
registration, permit, or license. | 10 | | (a) The Department has the power, after notice and an | 11 | | opportunity for
a hearing, to revoke a certificate of | 12 | | registration, permit, or license
issued by the Department if | 13 | | the holder of the certificate of registration, permit, or
| 14 | | license fails to
file a return, or to pay the tax, fee, | 15 | | penalty, or interest shown in a
filed
return, or to pay any | 16 | | final assessment of tax, fee,
penalty, or interest, as required | 17 | | by the tax or fee Act under which the
certificate
of | 18 | | registration, permit, or license is required or any other tax | 19 | | or fee Act
administered
by the Department.
| 20 | | (b) The Department may refuse to issue , reissue, or renew a | 21 | | certificate of registration, permit, or license authorized to | 22 | | be issued by the Department if a person who is named as the | 23 | | owner, a partner, a corporate officer, or, in the case of a |
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| 1 | | limited liability company, a manager or member, of the | 2 | | applicant on the application for the certificate of | 3 | | registration, permit or license, is or has been named as the | 4 | | owner, a partner, a corporate officer, or in the case of a | 5 | | limited liability company, a manager or member, on the | 6 | | application for the certificate of registration, permit, or | 7 | | license of a person that is in default for moneys due under the | 8 | | tax or fee Act upon which the certificate of registration, | 9 | | permit, or license is required or any other tax or fee Act | 10 | | administered by the Department. For purposes of this Section | 11 | | only, in determining whether a person is in default for moneys | 12 | | due, the Department shall include only amounts established as a | 13 | | final liability within the 20 years prior to the date of the | 14 | | Department's notice of refusal to issue or reissue the | 15 | | certificate of registration, permit, or license. For purposes | 16 | | of this Section, "person" means any natural individual, firm, | 17 | | partnership, association, joint stock company, joint | 18 | | adventure, public or private corporation, limited liability | 19 | | company, or a receiver, executor, trustee, guardian or other | 20 | | representative appointed by order of any court. | 21 | | (c) When revoking or refusing to issue or reissue a | 22 | | certificate of registration, permit, or license
issued by the | 23 | | Department, the procedure for notice and hearing used shall be | 24 | | the procedure
provided under the Act pursuant to which the | 25 | | certificate 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 | 2 | | Sections 3-10, 4d, 4e, 4f, 6, 7, 8, 10, 11, 11a, 11b, 23, 24, | 3 | | and 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, | 9 | | each person
licensed
to affix the State tax stamp to cigarettes | 10 | | shall file with the Department, for
all cigarettes
imported | 11 | | into the United States to which the person has affixed the tax | 12 | | stamp
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 | 21 | | penalties provided for in this Act, a violation of subsection | 22 | | (a) or subsection
(b) of this Section shall constitute an | 23 | | unlawful practice as provided in the
Consumer Fraud and | 24 | | Deceptive Business Practices Act.
| 25 | | (d-1) Retailers issued a license under Section 4g of this | 26 | | Act and secondary distributors shall not be liable under |
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| 1 | | subsections (c)(1) and (d) of this Section for unknowingly | 2 | | possessing, selling, or distributing to consumers or users | 3 | | cigarettes identified in subsection (a)(1) of this Section if | 4 | | the cigarettes possessed, sold, or distributed by the licensed | 5 | | retailer or secondary distributor were obtained from a | 6 | | distributor licensed under this Act. | 7 | | (d-2) Criminal penalties. A distributor, secondary | 8 | | distributor, retailer, or person who violates subsection (a), | 9 | | or a distributor, secondary distributor, or person who violates | 10 | | subsection (b) of this Section shall be guilty of a Class 4 | 11 | | felony. | 12 | | (e) Unfair cigarette sales. For purposes of the Trademark | 13 | | Registration and
Protection Act and the Counterfeit Trademark | 14 | | Act, cigarettes imported or
reimported into the United States | 15 | | for sale or distribution under any trade
name, trade dress, or | 16 | | trademark that is the same as, or is confusingly similar
to, | 17 | | any trade name, trade dress, or trademark used for cigarettes | 18 | | manufactured
in the United States for sale or distribution in | 19 | | the United States shall be
presumed to have been purchased | 20 | | outside 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; | 13 | | 96-1027, eff. 7-12-10.)
| 14 | | (35 ILCS 130/4d) | 15 | | Sec. 4d. Sales of cigarettes to and by retailers. In-state | 16 | | makers, manufacturers, and fabricators licensed as | 17 | | distributors under Section 4 of this Act and out-of-state | 18 | | makers, manufacturers, and fabricators holding permits under | 19 | | Section 4b of this Act may not sell original packages of | 20 | | cigarettes to retailers. A retailer who is licensed under | 21 | | Section 4g of this Act may sell only original packages of | 22 | | cigarettes obtained from manufacturer representatives, | 23 | | licensed secondary distributors, or licensed distributors | 24 | | other than in-state makers, manufacturers, or fabricators | 25 | | licensed as distributors under Section 4 of this Act and |
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| 1 | | out-of-state makers, manufacturers, or fabricators holding | 2 | | permits under Section 4b of this Act.
| 3 | | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10; | 4 | | 97-587, eff. 8-26-11.) | 5 | | (35 ILCS 130/4e) | 6 | | Sec. 4e. Sales of cigarettes to and by secondary | 7 | | distributors. In-state makers, manufacturers, and fabricators | 8 | | licensed as distributors under Section 4 of this Act and | 9 | | out-of-state makers, manufacturers, and fabricators holding | 10 | | permits under Section 4b of this Act may not sell original | 11 | | packages of cigarettes to secondary distributors. A secondary | 12 | | distributor may sell only original packages of cigarettes | 13 | | obtained from licensed distributors other than in-state | 14 | | makers, manufacturers, or fabricators licensed as distributors | 15 | | under Section 4 of this Act and out-of-state makers, | 16 | | manufacturers, or fabricators holding permits under Section 4b | 17 | | of this Act. Secondary distributors may sell cigarettes to | 18 | | Illinois retailers issued a license under Section 4g of this | 19 | | Act for resale, and are also authorized to make retail sales of | 20 | | cigarettes at the location on the secondary distributor's | 21 | | license as long as the secondary distributor obtains a license | 22 | | under Section 4g of the Cigarette Tax Act and sells 75% or more | 23 | | of the cigarettes sold at such location to retailers issued a | 24 | | license under Section 4g of this Act for resale. All sales by | 25 | | secondary distributors to retailers issued a license under |
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| 1 | | Section 4g of this Act must be made at the location on the | 2 | | secondary distributor's license. Retailers issued a license | 3 | | under Section 4g of this Act must take possession of all | 4 | | cigarettes sold by the secondary distributor at the secondary | 5 | | distributor's licensed address. Secondary distributors may not | 6 | | make deliveries of cigarettes to retailers. | 7 | | Secondary distributors may not file a claim for credit or | 8 | | refund 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 | 13 | | manufacturer directly to retailers in this State issued a | 14 | | license under Section 4g of this Act without first having | 15 | | obtained authorization from the Department. Application for | 16 | | authority to maintain representatives in this State to market | 17 | | in this State cigarettes produced by the manufacturer shall be | 18 | | made to the Department on a form furnished and prescribed by | 19 | | the Department. Each applicant under this Section shall furnish | 20 | | the following information to the Department on a form signed | 21 | | and 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 | 5 | | authorization to maintain manufacturer representatives in this | 6 | | State: | 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 | 11 | | manufacturer who is eligible to maintain manufacturer | 12 | | representatives in this State, shall notify the applicant in | 13 | | writing, not more than 60 days after an application has been | 14 | | received, that the applicant may or may not maintain the | 15 | | requested number of manufacturer representatives in this | 16 | | State. A copy of the notice authorizing a manufacturer to | 17 | | maintain manufacturer representatives in this State shall be | 18 | | available for inspection by the Department at each place of | 19 | | business identified in the application and in the motor vehicle | 20 | | operated by marketing representatives in the course of | 21 | | performing his or her duties in this State on behalf of the | 22 | | manufacturer. | 23 | | A manufacturer representative shall notify the Department | 24 | | of any change in the information contained on the application | 25 | | form and shall do so within 30 days after any such change. | 26 | | (b) Only directors, officers, and employees of the |
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| 1 | | manufacturer may act as manufacturer representatives in this | 2 | | State. The manufacturer shall provide to the Department the | 3 | | names and addresses of the manufacturer representatives | 4 | | operating in this State and the make, model, and license plate | 5 | | number of each motor vehicle operated by a manufacturer | 6 | | representative in the course of performing his or her duties in | 7 | | this State on behalf of the manufacturer. The following | 8 | | individuals 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 | 25 | | this State who are licensed under Section 4g of this Act only | 26 | | original packages of cigarettes made, manufactured, or |
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| 1 | | fabricated by the manufacturer and purchased or obtained from a | 2 | | distributor licensed under this Act, or the Cigarette Tax Use | 3 | | Act, and on which tax stamps have been affixed. Manufacturer | 4 | | representatives may sell up to 600 stamped original packages of | 5 | | cigarettes in a calendar year, for the purpose of promoting the | 6 | | manufacturer's brands of cigarettes. A manufacturer | 7 | | representative may not possess more than 500 stamped original | 8 | | packages of cigarettes made, manufactured, or fabricated by the | 9 | | manufacturer and purchased or obtained from a distributor | 10 | | licensed under this Act or the Cigarette Use Tax Act. Any | 11 | | original packages of cigarettes in the possession of a | 12 | | manufacturer representative that (i) are not made, | 13 | | manufactured, or fabricated by the manufacturer and purchased | 14 | | or obtained from a distributor licensed under this Act or the | 15 | | Cigarette Use Tax Act, other than cigarettes for personal use | 16 | | and consumption, (ii) exceed the maximum quantity of 500 | 17 | | original packages of cigarettes, excluding packages of | 18 | | cigarettes for personal use and consumption; (iii) violate | 19 | | Section 3-10 of this Act; or (iv) do not have the proper tax | 20 | | stamps affixed, are contraband and subject to seizure and | 21 | | forfeiture. | 22 | | Manufacturer representatives may sell , on behalf of | 23 | | licensed distributors, stamped original packages of cigarettes | 24 | | to retailers who are licensed under Section 4g of this Act on | 25 | | behalf of licensed distributors . The manufacturer | 26 | | representative shall provide the distributor with a signed |
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| 1 | | receipt for the cigarettes obtained from the distributor. The | 2 | | distributor shall invoice the licensed retailer, and the | 3 | | licensed retailer shall pay the distributor for all cigarettes | 4 | | provided to licensed retailers by manufacturer representatives | 5 | | on behalf of a distributor. | 6 | | Manufacturer representatives may sell stamped original | 7 | | packages of cigarettes to licensed retailers that are purchased | 8 | | from licensed distributors. Distributors shall provide | 9 | | manufacturer representatives with invoices for stamped | 10 | | original packages of cigarettes sold to manufacturer | 11 | | representatives. Manufacturer representatives shall invoice | 12 | | licensed retailers, and the licensed retailers shall pay the | 13 | | manufacturer representatives for all original packages of | 14 | | cigarettes sold to licensed retailers. | 15 | | (d) Any person aggrieved by any decision of the Department | 16 | | under this Section may, within 20 days after notice of the | 17 | | decision, protest and request a hearing. Upon receiving a | 18 | | request for a hearing, the Department shall give notice to the | 19 | | person requesting the hearing of the time and place fixed for | 20 | | the hearing and shall hold a hearing in conformity with the | 21 | | provisions of this Act and then issue its final administrative | 22 | | decision in the matter to that person. In the absence of a | 23 | | protest and request for a hearing within 20 days, the | 24 | | Department's decision shall become final without any further | 25 | | determination 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, | 3 | | no person may engage in business as a retailer of cigarettes in | 4 | | this State without first having obtained a license from the | 5 | | Department. Application for license shall be made to the | 6 | | Department, by electronic means, in a form prescribed by the | 7 | | Department. Each applicant for a license under this Section | 8 | | shall furnish to the Department, in an electronic format | 9 | | established 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 | 18 | | retailer's license shall be $75. The fee shall be deposited | 19 | | into the Tax Compliance and Administration Fund and shall be | 20 | | for the cost of tobacco retail inspection and contraband | 21 | | tobacco and tobacco smuggling with at least two-thirds of the | 22 | | money being used for contraband tobacco and tobacco smuggling | 23 | | operations and enforcement. | 24 | | Each applicant for a license shall pay the fee to the | 25 | | Department at the time of submitting its application for a |
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| 1 | | license to the Department. The Department shall require an | 2 | | applicant for a license under this Section to electronically | 3 | | file and pay the fee. | 4 | | A separate annual license fee shall be paid for each place | 5 | | of business at which a person who is required to procure a | 6 | | retailer's license under this Section proposes to engage in | 7 | | business as a retailer in Illinois under this Act. | 8 | | The following are ineligible to receive a retailer's | 9 | | license 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 | 23 | | fee, in proper form, from a person who is eligible to receive a | 24 | | retailer's license under this Act, shall issue to such | 25 | | applicant a license in form as prescribed by the Department. | 26 | | That license shall permit the applicant to whom it is issued to |
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| 1 | | engage in business as a retailer under this Act at the place | 2 | | shown in his or her application. All licenses issued by the | 3 | | Department under this Section shall be valid for a period not | 4 | | to exceed one year after issuance unless sooner revoked, | 5 | | canceled, or suspended as provided in this Act. No license | 6 | | issued under this Section is transferable or assignable. The | 7 | | license shall be conspicuously displayed in the place of | 8 | | business conducted by the licensee in Illinois under such | 9 | | license. The Department shall not issue a retailer's license to | 10 | | a retailer unless the retailer is also registered under the | 11 | | Retailers' Occupation Tax Act. A person who obtains a license | 12 | | as a retailer who ceases to do business as specified in the | 13 | | license, or who never commenced business, or who obtains a | 14 | | distributor's license, or whose license is suspended or | 15 | | revoked, shall immediately surrender the license to the | 16 | | Department. | 17 | | Any person aggrieved by any decision of the Department | 18 | | under this subsection may, within 30 days after notice of the | 19 | | decision, protest and request a hearing. Upon receiving a | 20 | | request for a hearing, the Department shall give written notice | 21 | | to the person requesting the hearing of the time and place | 22 | | fixed for the hearing and shall hold a hearing in conformity | 23 | | with the provisions of this Act and then issue its final | 24 | | administrative decision in the matter to that person. In the | 25 | | absence of a protest and request for a hearing within 30 days, | 26 | | the Department's decision shall become final without any |
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| 1 | | further determination being made or notice given. | 2 | | (35 ILCS 130/4h new) | 3 | | Sec. 4h. Purchases of cigarettes by licensed retailers. A | 4 | | person who possesses a retailer's license under Section 4g of | 5 | | this Act shall obtain cigarettes for sale only from a licensed | 6 | | distributor, secondary distributor, or manufacturer | 7 | | representative.
| 8 | | (35 ILCS 130/6) (from Ch. 120, par. 453.6)
| 9 | | Sec. 6. Revocation, cancellation, or suspension of | 10 | | license. The Department may, after notice and hearing as | 11 | | provided for by this
Act, revoke, cancel or suspend the license | 12 | | of any distributor , or secondary distributor , or retailer for | 13 | | the
violation of any provision of this Act, or for | 14 | | noncompliance with any
provision herein contained, or for any | 15 | | noncompliance with any lawful rule
or regulation promulgated by | 16 | | the Department under Section 8 of this Act, or
because the | 17 | | licensee is determined to be ineligible for a distributor's
| 18 | | license for any one or more of the reasons provided for in | 19 | | Section 4 of
this Act, or because the licensee is determined to | 20 | | be ineligible for a secondary distributor's license for any one | 21 | | or more of the reasons provided for in Section 4c of this Act , | 22 | | or because the licensee is determined to be ineligible for a | 23 | | retailer's license for any one or more of the reasons provided | 24 | | for in Section 4g of this Act . However, no such license shall |
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| 1 | | be revoked, cancelled or
suspended, except after a hearing by | 2 | | the Department with notice to the
distributor , or secondary | 3 | | distributor , or retailer , as aforesaid, and affording such | 4 | | distributor , or secondary distributor , or retailer a | 5 | | reasonable
opportunity to appear and defend, and any | 6 | | distributor , or secondary distributor , or retailer aggrieved | 7 | | by any
decision of the Department with respect thereto may have | 8 | | the determination
of the Department judicially reviewed, as | 9 | | herein provided.
| 10 | | The Department may revoke, cancel, or suspend the license | 11 | | of any
distributor for a violation of the Tobacco Product | 12 | | Manufacturers' Escrow
Enforcement Act as provided in Section 30 | 13 | | of that Act. The Department may revoke, cancel, or suspend the | 14 | | license of any secondary distributor for a violation of | 15 | | subsection (e) of Section 15 of the Tobacco Product | 16 | | Manufacturers' Escrow Enforcement Act.
| 17 | | If the retailer has a training program that facilitates | 18 | | compliance with minimum-age tobacco laws, the Department shall | 19 | | suspend for 3 days the license of that retailer for a fourth or | 20 | | subsequent violation of the Prevention of Tobacco Use by Minors | 21 | | and Sale and Distribution of Tobacco Products Act, as provided | 22 | | in subsection (a) of Section 2 of that Act. For the purposes of | 23 | | this Section, any violation of subsection (a) of Section 2 of | 24 | | the Prevention of Tobacco Use by Minors and Sale and | 25 | | Distribution of Tobacco Products Act occurring at the | 26 | | retailer's licensed location during a 24-month period shall be |
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| 1 | | counted as a violation against the retailer. | 2 | | If the retailer does not have a training program that | 3 | | facilitates compliance with minimum-age tobacco laws, the | 4 | | Department shall suspend for 3 days the license of that | 5 | | retailer for a second violation of the Prevention of Tobacco | 6 | | Use by Minors and Sale and Distribution of Tobacco Products | 7 | | Act, as provided in subsection (a-5) of Section 2 of that Act. | 8 | | If the retailer does not have a training program that | 9 | | facilitates compliance with minimum-age tobacco laws, the | 10 | | Department shall suspend for 7 days the license of that | 11 | | retailer for a third violation of the Prevention of Tobacco Use | 12 | | by Minors and Sale and Distribution of Tobacco Products Act, as | 13 | | provided in subsection (a-5) of Section 2 of that Act. | 14 | | If the retailer does not have a training program that | 15 | | facilitates compliance with minimum-age tobacco laws, the | 16 | | Department shall suspend for 30 days the license of a retailer | 17 | | for a fourth or subsequent violation of the Prevention of | 18 | | Tobacco Use by Minors and Sale and Distribution of Tobacco | 19 | | Products Act, as provided in subsection (a-5) of Section 2 of | 20 | | that Act. | 21 | | A training program that facilitates compliance with | 22 | | minimum-age tobacco laws must include at least the following | 23 | | elements: (i) it must explain that only individuals displaying | 24 | | valid identification demonstrating that they are 18 years of | 25 | | age or older shall be eligible to purchase cigarettes or | 26 | | tobacco products; (ii) it must explain where a clerk can check |
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| 1 | | identification for a date of birth; and (iii) it must explain | 2 | | the penalties that a clerk and retailer are subject to for | 3 | | violations of the Prevention of Tobacco Use by Minors and Sale | 4 | | and Distribution of Tobacco Products Act. | 5 | | Any distributor , or secondary distributor , or retailer | 6 | | aggrieved by any decision of the Department under this
Section
| 7 | | may, within 20 days after notice of the decision, protest and | 8 | | request a
hearing. Upon receiving a request for a hearing, the | 9 | | Department shall give
notice in writing to the distributor , or | 10 | | secondary distributor , or retailer requesting the hearing that | 11 | | contains a
statement of the charges preferred against the | 12 | | distributor , or secondary distributor , or retailer and that | 13 | | states the
time and place fixed for the hearing. The Department | 14 | | shall hold the hearing in
conformity with the provisions of | 15 | | this Act and then issue its final
administrative decision in | 16 | | the matter to the distributor , or secondary distributor , or | 17 | | retailer . In the absence of a
protest and request for a hearing | 18 | | within 20 days, the Department's decision
shall become final | 19 | | without any further determination being made or notice
given.
| 20 | | No license so revoked, as aforesaid, shall be reissued to | 21 | | any such
distributor , or secondary distributor , or retailer | 22 | | within a period of 6 months after the date of the final
| 23 | | determination of such revocation. No such license shall be | 24 | | reissued at all
so long as the person who would receive the | 25 | | license is ineligible to
receive a distributor's license under | 26 | | this Act for any one or more of the
reasons provided for in |
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| 1 | | Section 4 of this Act , or is ineligible to receive a secondary | 2 | | distributor's license under this Act for any one or more of the | 3 | | reasons provided for in Section 4c of this Act , or is | 4 | | determined to be ineligible for a retailer's license under the | 5 | | Act for any one or more of the reasons provided for in Section | 6 | | 4g of this Act .
| 7 | | The Department upon complaint filed in the circuit
court | 8 | | may by injunction
restrain any person who fails, or refuses, to | 9 | | comply with any of the
provisions of this Act from acting as a | 10 | | distributor , or secondary distributor , or retailer of | 11 | | cigarettes 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 | 15 | | Department
designated, in writing, by the Director thereof, | 16 | | shall at its or his or
her own instance, or on the written | 17 | | request of any distributor, secondary distributor, retailer, | 18 | | manufacturer with authority to maintain manufacturer | 19 | | representatives, or other interested
party to the proceeding, | 20 | | issue subpoenas requiring the attendance of and
the giving of | 21 | | testimony by witnesses, and subpoenas duces tecum requiring
the | 22 | | production of books, papers, records or memoranda. All | 23 | | subpoenas and
subpoenas duces tecum issued under the terms of | 24 | | this Act may be served by
any person of full age. The fees of | 25 | | witnesses for attendance and travel
shall be the same as the |
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| 1 | | fees of witnesses before the circuit court of this
State; such | 2 | | fees to be paid when the witness is excused from further
| 3 | | attendance. When the witness is subpoenaed at the instance of | 4 | | the
Department or any officer or employee thereof, such fees | 5 | | shall be paid in
the same manner as other expenses of the | 6 | | Department, and when the witness
is subpoenaed at the instance | 7 | | of any other party to any such proceeding,
the cost of service | 8 | | of the subpoena or subpoena duces tecum and the fee of
the | 9 | | witness shall be borne by the party at whose instance the | 10 | | witness is
summoned. In such case the Department, in its | 11 | | discretion, may require a
deposit to cover the cost of such | 12 | | service and witness fees. A subpoena or
subpoena duces tecum so | 13 | | issued shall be served in the same manner as a subpoena
or | 14 | | subpoena duces tecum issued out of a court.
| 15 | | Any circuit court of this State, upon the
application of | 16 | | the Department or any officer or employee thereof, or upon
the | 17 | | application of any other party to the proceeding, may, in its
| 18 | | discretion, compel the attendance of witnesses, the production | 19 | | of books,
papers, records or memoranda and the giving of | 20 | | testimony before the
Department or any officer or employee | 21 | | thereof conducting an investigation
or holding a hearing | 22 | | authorized by this Act, by an attachment for contempt,
or | 23 | | otherwise, in the same manner as production of evidence may be | 24 | | compelled
before the court.
| 25 | | The Department or any officer or employee thereof, or any | 26 | | other party in
an investigation or hearing before the |
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| 1 | | Department, may cause the
depositions of witnesses within the | 2 | | State to be taken in the manner
prescribed by law for like | 3 | | depositions, or depositions for discovery in
civil actions in | 4 | | courts of this State, and to that end compel the
attendance of | 5 | | witnesses and the production of books, papers, records or
| 6 | | memoranda, 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 | 10 | | such
reasonable rules and regulations relating to the | 11 | | administration and
enforcement of this Act as may be deemed | 12 | | expedient.
| 13 | | Whenever notice is required by this Act, such notice may be | 14 | | given by
United States certified or registered mail, addressed | 15 | | to the person concerned at his
last known address, and proof of | 16 | | such mailing shall be sufficient for the
purposes of this Act. | 17 | | Notice of any hearing provided for by this Act and held before | 18 | | the Department shall
be so given not less than 7 days prior to | 19 | | the day fixed for the hearing.
| 20 | | Hearings provided for in this Act, other than hearings | 21 | | before 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 | 6 | | has
power to review all final administrative decisions of the | 7 | | Department in
administering this Act. The provisions of the | 8 | | Administrative Review Law,
and all amendments and
| 9 | | modifications thereof, and the rules adopted pursuant thereto, | 10 | | shall
apply to and govern all proceedings for the judicial | 11 | | review of final
administrative decisions of the Department | 12 | | under this Act. The term
"administrative decision" is defined | 13 | | as in Section 3-101 of the Code of Civil Procedure.
| 14 | | Service upon the Director of Revenue or Assistant Director | 15 | | of Revenue
of summons issued in any action to review a final
| 16 | | administrative decision shall be service upon the Department. | 17 | | The
Department shall certify the record of its proceedings if | 18 | | the distributor, secondary distributor, retailer, or | 19 | | manufacturer with authority to maintain manufacturer | 20 | | representatives pays to it the sum of 75˘ per page of testimony | 21 | | taken before the Department
and 25˘ per page of all other | 22 | | matters contained in such record, except that
these charges may | 23 | | be waived where the Department is satisfied that the aggrieved
| 24 | | party is a poor person who cannot afford to pay such charges.
| 25 | | Before the delivery of such record to the person applying for | 26 | | it, payment
of these charges must be made, and if
the record is |
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| 1 | | not paid for within 30 days after notice that such record
is | 2 | | available, the
complaint may be dismissed by the court upon | 3 | | motion of the Department.
| 4 | | No stay order shall be entered by the Circuit Court unless | 5 | | the
distributor, secondary distributor, retailer, or | 6 | | manufacturer with authority to maintain manufacturer | 7 | | representatives files with the court a bond in an amount fixed | 8 | | and approved by
the court, to indemnify the State against all | 9 | | loss and injury which may be
sustained by it on account of the | 10 | | review proceedings and to secure all
costs which may be | 11 | | occasioned by such proceedings.
| 12 | | Whenever any proceeding provided by this Act is begun | 13 | | before the
Department, either by the Department or by a person | 14 | | subject to this Act,
and such person thereafter dies or becomes | 15 | | a person under legal disability
before such
proceeding is | 16 | | concluded, the legal representative of the deceased person
or | 17 | | of the person under legal disability shall notify
the | 18 | | Department of such death or legal disability.
Such legal | 19 | | representative, as such, shall then be substituted
by the | 20 | | Department for such person. If the legal representative fails | 21 | | to
notify the Department of his or her appointment as such | 22 | | legal representative, the
Department may, upon its own motion, | 23 | | substitute such legal representative
in the proceeding pending | 24 | | before the Department for the person who died or
became a | 25 | | person under legal disability.
| 26 | | Hearings to contest an administrative decision under this |
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| 1 | | Act conducted as a result of a protest filed with the Illinois | 2 | | Independent Tax Tribunal on or after July 1, 2013 shall be | 3 | | conducted pursuant to the provisions of the Illinois | 4 | | Independent Tax Tribunal Act of 2012. | 5 | | (Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11; | 6 | | 97-1129, 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 | 9 | | designated in writing
by the Director thereof, for the purpose | 10 | | of administering and enforcing the
provisions of this Act, may | 11 | | hold investigations and, except as otherwise provided in the | 12 | | Illinois Independent Tax Tribunal Act of 2012, may hold | 13 | | hearings concerning
any matters covered by this Act, and may | 14 | | examine books, papers, records or
memoranda bearing upon the | 15 | | sale or other disposition of cigarettes by a
distributor, | 16 | | secondary distributor, retailer, manufacturer with authority | 17 | | to maintain manufacturer representatives under Section 4f of | 18 | | this Act, or manufacturer representative, and may issue | 19 | | subpoenas requiring the attendance of a
distributor, secondary | 20 | | distributor, retailer, manufacturer with authority to maintain | 21 | | manufacturer representatives under Section 4f of this Act, or | 22 | | manufacturer representative, or any officer or employee of a | 23 | | distributor, secondary distributor, retailer, manufacturer | 24 | | with authority to maintain manufacturer representatives under | 25 | | Section 4f of this Act, or any person
having knowledge of the |
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| 1 | | facts, and may take testimony and require proof,
and may issue | 2 | | subpoenas duces tecum to compel the production of relevant
| 3 | | books, papers, records and memoranda, for the information of | 4 | | the
Department.
| 5 | | All hearings to contest administrative decisions of the | 6 | | Department conducted as a result of a protest filed with the | 7 | | Illinois Independent Tax Tribunal on or after July 1, 2013 | 8 | | shall be subject to the provisions of the Illinois Independent | 9 | | Tax Tribunal Act of 2012. | 10 | | In the conduct of any investigation or hearing provided for | 11 | | by this Act,
neither the Department, nor any officer or | 12 | | employee thereof, shall be bound
by the technical rules of | 13 | | evidence, and no informality in the proceedings
nor in the | 14 | | manner of taking testimony shall invalidate any rule, order,
| 15 | | decision or regulation made, approved or confirmed by the | 16 | | Department.
| 17 | | The Director of Revenue, or any duly authorized officer or | 18 | | employee of
the Department, shall have the power to administer | 19 | | oaths to such persons
required by this Act to give testimony | 20 | | before the said Department.
| 21 | | The books, papers, records and memoranda of the Department, | 22 | | or parts
thereof, may be proved in any hearing, investigation | 23 | | or legal proceeding by
a reproduced copy thereof under the | 24 | | certificate of the Director of Revenue.
Such reproduced copy | 25 | | shall, without further proof, be admitted into
evidence before | 26 | | the 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; | 2 | | 97-1129, 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 | 5 | | to procure a
license under this Act, shall keep within | 6 | | Illinois, at his licensed
address, complete and accurate | 7 | | records of cigarettes held, purchased,
manufactured, brought | 8 | | in or caused to be brought in from without the State,
and sold, | 9 | | or otherwise disposed of, and shall preserve and keep within
| 10 | | Illinois at his licensed address all invoices, bills of lading, | 11 | | sales
records, copies of bills of sale, inventory at the close | 12 | | of each period for
which a return is required of all cigarettes | 13 | | on hand and of all cigarette
revenue stamps, both affixed and | 14 | | unaffixed, and other pertinent papers and
documents relating to | 15 | | the manufacture, purchase, sale or disposition of
cigarettes. | 16 | | Every sales invoice issued by a licensed distributor to a | 17 | | retailer in this State shall contain the distributor's | 18 | | cigarette distributor license number. All books and records and | 19 | | other papers and documents that are
required by this Act to be | 20 | | kept shall be kept in the English language, and
shall, at all | 21 | | times during the usual business hours of the day, be subject
to | 22 | | inspection by the Department or its duly authorized agents and | 23 | | employees.
The Department may adopt rules that establish | 24 | | requirements, including record
forms and formats, for records | 25 | | required to be kept and maintained by taxpayers.
For purposes |
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| 1 | | of this Section, "records" means all data maintained by the
| 2 | | taxpayer, including data on paper, microfilm, microfiche or any | 3 | | type of
machine-sensible data compilation. Those books, | 4 | | records, papers and documents
shall be preserved for a period | 5 | | of at least 3 years after the date of the
documents, or the | 6 | | date of the entries appearing in the records, unless the
| 7 | | Department, in writing, authorizes their destruction or | 8 | | disposal at an earlier
date. At all times during the usual | 9 | | business hours of the day any duly
authorized agent or employee | 10 | | of the Department may enter any place of business
of the | 11 | | distributor, without a search warrant, and inspect the premises | 12 | | and the
stock or packages of cigarettes and the vending devices | 13 | | therein contained, to
determine whether any of the provisions | 14 | | of this Act are being violated. If such
agent or employee is | 15 | | denied free access or is hindered or interfered with in
making | 16 | | such examination as herein provided, the license of the | 17 | | distributor at
such premises shall be subject to revocation by | 18 | | the Department.
| 19 | | (Source: P.A. 88-480.)
| 20 | | (35 ILCS 130/11a) | 21 | | Sec. 11a. Secondary distributors; records. Every secondary | 22 | | distributor of cigarettes, who is required to procure a license | 23 | | under this Act, shall keep within Illinois, at his licensed | 24 | | address, complete and accurate records of cigarettes held, | 25 | | purchased, brought in from without the State, and sold, or |
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| 1 | | otherwise disposed of, and shall preserve and keep within | 2 | | Illinois at his licensed address all invoices, bills of lading, | 3 | | sales records, copies of bills of sale, inventory at the close | 4 | | of each period for which a report is required of all cigarettes | 5 | | on hand, and other pertinent papers and documents relating to | 6 | | the purchase, sale, or disposition of cigarettes. Every sales | 7 | | invoice issued by a secondary distributor to a retailer in this | 8 | | State shall contain the distributor's secondary distributor | 9 | | license number. All books and records and other papers and | 10 | | documents that are required by this Act to be kept shall be | 11 | | kept in the English language, and shall, at all times during | 12 | | the usual business hours of the day, be subject to inspection | 13 | | by the Department or its duly authorized agents and employees. | 14 | | The Department may adopt rules that establish requirements, | 15 | | including record forms and formats, for records required to be | 16 | | kept and maintained by secondary distributors. For purposes of | 17 | | this Section, "records" means all data maintained by the | 18 | | secondary distributors, including data on paper, microfilm, | 19 | | microfiche or any type of machine sensible data compilation. | 20 | | Those books, records, papers, and documents shall be preserved | 21 | | for a period of at least 3 years after the date of the | 22 | | documents, or the date of the entries appearing in the records, | 23 | | unless the Department, in writing, authorizes their | 24 | | destruction or disposal at an earlier date. At all times during | 25 | | the usual business hours of the day any duly authorized agent | 26 | | or employee of the Department may enter any place of business |
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| 1 | | of the secondary distributor without a search warrant and may | 2 | | inspect the premises and the stock or packages of cigarettes | 3 | | therein contained to determine whether any of the provisions of | 4 | | this Act are being violated. If such agent or employee is | 5 | | denied free access or is hindered or interfered with in making | 6 | | such examination as herein provided, the license of the | 7 | | secondary distributor at such premises shall be subject to | 8 | | revocation 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 | 12 | | manufacturer with authority to maintain manufacturer | 13 | | representatives under Section 4f of this Act shall keep within | 14 | | Illinois, at his business address identified under Section 4f | 15 | | of this Act, complete and accurate records of cigarettes | 16 | | purchased, sold, or otherwise disposed of, and shall preserve | 17 | | and keep within Illinois at his business address all invoices, | 18 | | sales records, copies of bills of sale, inventory at the close | 19 | | of each period for which a report is required of all cigarettes | 20 | | on hand, and other pertinent papers and documents relating to | 21 | | the purchase, sale, or disposition of cigarettes. Every sales | 22 | | invoice issued by a manufacturer representative to a retailer | 23 | | in this State shall contain the manufacturer's manufacturer | 24 | | representative license number. All books and records and other | 25 | | papers and documents that are required by this Act to be kept |
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| 1 | | shall be kept in the English language, and shall, at all times | 2 | | during the usual business hours of the day, be subject to | 3 | | inspection by the Department or its duly authorized agents and | 4 | | employees. The Department may adopt rules that establish | 5 | | requirements, including record forms and formats, for records | 6 | | required to be kept and maintained by manufacturers with | 7 | | authority to maintain manufacturer representatives under | 8 | | Section 4f of this Act and their manufacturer representatives. | 9 | | For purposes of this Section, "records" means all data | 10 | | maintained by the manufacturers with authority to maintain | 11 | | manufacturer representatives under Section 4f of this Act and | 12 | | their manufacturer representatives, including data on paper, | 13 | | microfilm, microfiche or any type of machine sensible data | 14 | | compilation. Those books, records, papers, and documents shall | 15 | | be preserved for a period of at least 3 years after the date of | 16 | | the documents, or the date of the entries appearing in the | 17 | | records, unless the Department, in writing, authorizes their | 18 | | destruction or disposal at an earlier date. At all times during | 19 | | the usual business hours of the day, any duly authorized agent | 20 | | or employee of the Department may enter any place of business | 21 | | of the manufacturers with authority to maintain manufacturer | 22 | | representatives under Section 4f of this Act and their | 23 | | manufacturer representatives, or inspect any motor vehicle | 24 | | used by a manufacturer representative in the course of | 25 | | business, without a search warrant and may inspect the | 26 | | premises, motor vehicle, and any packages of cigarettes therein |
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| 1 | | contained to determine whether any of the provisions of this | 2 | | Act are being violated. If such agent or employee is denied | 3 | | free access or is hindered or interfered with in making such | 4 | | examination as herein provided, the ability to maintain | 5 | | marketing representatives in Illinois may be withdrawn by the | 6 | | Department.
| 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 | 10 | | required to procure a license under this Act shall keep within | 11 | | Illinois complete and accurate records of cigarettes | 12 | | purchased, sold, or otherwise disposed of. It shall be the duty | 13 | | of every retail licensee to make sales records, copies of bills | 14 | | of sale, and inventory at the close of each period for which a | 15 | | report is required of all cigarettes on hand available upon | 16 | | reasonable notice for the purpose of investigation and control | 17 | | by the Department. Such records need not be maintained on the | 18 | | licensed premises, but must be maintained in the State of | 19 | | Illinois; however, if access is available electronically, the | 20 | | records may be maintained out of state. However, all original | 21 | | invoices or copies thereof covering purchases of cigarettes | 22 | | must be retained on the licensed premises for a period of 90 | 23 | | days after such purchase, unless the Department has granted a | 24 | | waiver in response to a written request in cases where records | 25 | | are kept at a central business location within the State of |
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| 1 | | Illinois or in cases where records that are available | 2 | | electronically are maintained out of state. The Department may | 3 | | adopt rules that establish requirements, including record | 4 | | forms and formats, for records required to be kept and | 5 | | maintained by the retailer. | 6 | | For purposes of this Section, "records" means all data | 7 | | maintained by the retailer, including data on paper, microfilm, | 8 | | microfiche or any type of machine sensible data compilation. | 9 | | Those books, records, papers, and documents shall be preserved | 10 | | for a period of at least 3 years after the date of the | 11 | | documents, or the date of the entries appearing in the records, | 12 | | unless the Department, in writing, authorizes their | 13 | | destruction or disposal at an earlier date. At all times during | 14 | | the usual business hours of the day, any duly authorized agent | 15 | | or employee of the Department may enter any place of business | 16 | | of the retailer without a search warrant and may inspect the | 17 | | premises to determine whether any of the provisions of this Act | 18 | | are being violated. If such agent or employee is denied free | 19 | | access or is hindered or interfered with in making such | 20 | | examination as herein provided, the license of the retailer | 21 | | shall 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, | 24 | | retailer, manufacturer with authority to maintain manufacturer | 25 | | representatives under Section 4f of this Act and their |
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| 1 | | manufacturer representatives, or other person who shall | 2 | | knowingly and wilfully
sell or offer for sale any original | 3 | | package, as defined in this Act,
having affixed thereto any | 4 | | fraudulent, spurious, imitation or counterfeit
stamp, or stamp | 5 | | which has been previously affixed, or affixes a stamp which
has | 6 | | previously been affixed to an original package, or who shall | 7 | | knowingly
and wilfully sell or offer for sale any original | 8 | | package, as defined in
this Act, having imprinted thereon | 9 | | underneath the sealed transparent
wrapper thereof any | 10 | | fraudulent, spurious, imitation or counterfeit tax
imprint, | 11 | | shall 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 | 15 | | contraband cigarettes.
| 16 | | (a) Possession or sale of 100 or less packages of | 17 | | contraband cigarettes. With the exception of licensed | 18 | | distributors, licensed secondary distributors, or licensed | 19 | | transporters, as defined in Section 9c of this Act, any person | 20 | | who has in his or her possession or sells 100 or less original | 21 | | packages of contraband cigarettes is guilty of a Class A | 22 | | misdemeanor and a Class 4 felony for each subsequent offense | 23 | | occurring within 12 months of a prior offense . | 24 | | (b) Possession or sale of more than 100 but less than 251 | 25 | | packages of contraband cigarettes. With the exception of |
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| 1 | | licensed distributors, licensed secondary distributors, or | 2 | | licensed transporters, as defined in Section 9c of this Act, | 3 | | any person who has in his or her possession or sells more than | 4 | | 100 but less than 251 original packages of contraband | 5 | | cigarettes is guilty of a Class A misdemeanor for a first | 6 | | offense and a Class 4 felony for each subsequent offense. | 7 | | (c) Possession or sale of more than 250 but less than 1,001 | 8 | | packages of contraband cigarettes. With the exception of | 9 | | licensed distributors, licensed secondary distributors, or | 10 | | licensed transporters, as defined in Section 9c of this Act, | 11 | | any person who has in his or her possession or sells more than | 12 | | 250 but less than 1,001 original packages of contraband | 13 | | cigarettes is guilty of a Class 4 felony. | 14 | | (d) Possession or sale of more than 1,000 packages of | 15 | | contraband cigarettes. With the exception of licensed | 16 | | distributors, licensed secondary distributors, or licensed | 17 | | transporters, as defined in Section 9c of this Act, any person | 18 | | who has in his or her possession or sells more than 1,000 | 19 | | original packages of contraband cigarettes is guilty of a Class | 20 | | 3 felony. | 21 | | (e) Any person licensed as a distributor, secondary | 22 | | distributor, or transporter, as defined in Section 9c of this | 23 | | Act, who has in his or her possession or sells 100 or less | 24 | | original packages of contraband cigarettes is guilty of a Class | 25 | | A misdemeanor and a Class 4 felony for each subsequent offense | 26 | | occurring within 12 months of a prior offense . |
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| 1 | | (f) Any person licensed as a distributor, secondary | 2 | | distributor, or transporter, as defined in Section 9c of this | 3 | | Act, who has in his or her possession or sells more than 100 | 4 | | original packages of contraband cigarettes is guilty of a Class | 5 | | 4 felony. | 6 | | (g) Notwithstanding subsections (e) through (f), licensed | 7 | | distributors and transporters, as defined in Section 9c of this | 8 | | Act, may possess unstamped packages of cigarettes. | 9 | | Notwithstanding subsections (e) through (f), licensed | 10 | | distributors may possess cigarettes that bear a tax stamp of | 11 | | another state or taxing jurisdiction. Notwithstanding | 12 | | subsections (e) through (f), a licensed distributor or licensed | 13 | | secondary distributor may possess contraband cigarettes | 14 | | returned to the distributor or licensed secondary distributor | 15 | | by a retailer if the distributor or licensed secondary | 16 | | distributor immediately conducts an inventory of the | 17 | | cigarettes being returned, the distributor or licensed | 18 | | secondary distributor and the retailer returning the | 19 | | contraband cigarettes sign the inventory, the distributor or | 20 | | licensed secondary distributor provides a copy of the signed | 21 | | inventory to the retailer, and the distributor retains the | 22 | | inventory in its books and records and promptly notifies the | 23 | | Department of Revenue. | 24 | | (h) Notwithstanding subsections (a) through (d) of this | 25 | | Section, a retailer unknowingly possessing contraband | 26 | | cigarettes obtained from a licensed distributor or licensed |
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| 1 | | secondary distributor or knowingly possessing contraband | 2 | | cigarettes obtained from a licensed distributor is not subject | 3 | | to penalties under this Section if the retailer, within 48 | 4 | | hours after discovering that the cigarettes are contraband | 5 | | cigarettes, excluding Saturdays, Sundays, and holidays: (i) | 6 | | notifies the Department and the licensed distributor or | 7 | | licensed secondary distributor from whom the cigarettes were | 8 | | obtained, orally and in writing, that he or she possesses | 9 | | contraband cigarettes obtained from a licensed distributor or | 10 | | licensed secondary distributor; (ii) places the contraband | 11 | | cigarettes in one or more containers and seals those | 12 | | containers; and (iii) places on the containers the following or | 13 | | similar language: "Contraband Cigarettes. Not For Sale." All | 14 | | contraband cigarettes in the possession of a retailer remain | 15 | | subject to forfeiture under the provisions of this Act.
| 16 | | Any retailer who knowingly possesses packages of | 17 | | cigarettes with a counterfeit stamp with intent to sell is | 18 | | guilty of a Class 2 felony. Any retailer who knowingly | 19 | | possesses unstamped packages of cigarettes with intent to sell | 20 | | is guilty of a Class 4 felony. A retailer shall not be liable | 21 | | for unknowingly possessing, selling, or distributing to | 22 | | consumers cigarettes that contain an old stamp if the correct | 23 | | tax was collected at the point of sale and the cigarettes were | 24 | | obtained 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 | 3 | | distributor , retailer, or manufacturer representative of | 4 | | original packages without having
a license, as required by this | 5 | | Act, 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 | 8 | | changing 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, | 14 | | each person
licensed
to affix the State tax stamp to cigarettes | 15 | | shall file with the Department, for
all cigarettes
imported | 16 | | into the United States to which the person has affixed the tax | 17 | | stamp
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 | 26 | | penalties provided for in this Act, a violation of subsection |
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| 1 | | (a) or subsection
(b) of this Section shall constitute an | 2 | | unlawful practice as provided in the
Consumer Fraud and | 3 | | Deceptive Business Practices Act.
| 4 | | (d-1) Retailers who are licensed under Section 4g of the | 5 | | Cigarette Tax Act and secondary distributors shall not be | 6 | | liable under subsections (c)(1) and (d) of this Section for | 7 | | unknowingly possessing, selling, or distributing to consumers | 8 | | or users cigarettes identified in subsection (a)(1) of this | 9 | | Section if the cigarettes possessed, sold, or distributed by | 10 | | the licensed retailer were obtained from a distributor or | 11 | | secondary distributor licensed under this Act or the Cigarette | 12 | | Tax Act. | 13 | | (d-2) Criminal Penalties. A distributor, secondary | 14 | | distributor, retailer, or person who violates subsection (a), | 15 | | or a distributor, secondary distributor, or person who violates | 16 | | subsection (b) of this Section shall be guilty of a Class 4 | 17 | | felony. | 18 | | (e) Unfair cigarette sales. For purposes of the Trademark | 19 | | Registration and
Protection Act and the Counterfeit Trademark | 20 | | Act, cigarettes imported or
reimported into the United States | 21 | | for sale or distribution under any trade
name, trade dress, or | 22 | | trademark that is the same as, or is confusingly similar
to, | 23 | | any trade name, trade dress, or trademark used for cigarettes | 24 | | manufactured
in the United States for sale or distribution in | 25 | | the United States shall be
presumed to have been purchased | 26 | | outside 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.
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| 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; | 19 | | 96-1027, eff. 7-12-10.)
| 20 | | (35 ILCS 135/4d) | 21 | | Sec. 4d. Sales of cigarettes to and by retailers. In-state | 22 | | makers, manufacturers, or fabricators licensed as distributors | 23 | | under Section 4 of this Act and out-of-state makers, | 24 | | manufacturers, or fabricators holding permits under Section 7 | 25 | | of this Act may not sell original packages of cigarettes to |
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| 1 | | retailers. A retailer who is licensed under Section 4g of the | 2 | | Cigarette Tax Act may sell only original packages of cigarettes | 3 | | obtained from licensed secondary distributors or licensed | 4 | | distributors other than in-state makers, manufacturers, or | 5 | | fabricators licensed as distributors under Section 4 of this | 6 | | Act and out-of-state makers, manufacturers, or fabricators | 7 | | holding 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 | 11 | | distributors. In-state makers, manufacturers, and fabricators | 12 | | licensed as distributors under Section 4 of this Act and | 13 | | out-of-state makers, manufacturers, and fabricators holding | 14 | | permits under Section 7 of this Act may not sell original | 15 | | packages of cigarettes to secondary distributors. A secondary | 16 | | distributor may sell only original packages of cigarettes | 17 | | obtained from licensed distributors other than in-state | 18 | | makers, manufacturers, or fabricators licensed as distributors | 19 | | under Section 4 of this Act and out-of-state makers, | 20 | | manufacturers, or fabricators holding permits under Section 7 | 21 | | of this Act. Secondary distributors may sell cigarettes to | 22 | | Illinois retailers who are licensed under Section 4g of the | 23 | | Cigarette Tax Act for resale, and are also authorized to make | 24 | | retail sales of cigarettes at the location on the secondary | 25 | | distributor's license as long as the secondary distributor |
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| 1 | | obtains a license under Section 4g of the Cigarette Tax Act and | 2 | | sells 75% or more of the cigarettes sold at such location to | 3 | | retailers who are licensed under Section 4g of the Cigarette | 4 | | Tax Act for resale. | 5 | | All sales by secondary distributors to Illinois retailers | 6 | | who are licensed under Section 4g of the Cigarette Tax Act must | 7 | | be made at the location on the secondary distributor's license. | 8 | | Retailers who are issued a license under Section 4g of the | 9 | | Cigarette Tax Act must take possession of all cigarettes sold | 10 | | by the secondary distributor at the secondary distributor's | 11 | | licensed address. Secondary distributors may not make | 12 | | deliveries of cigarettes to Illinois retailers who are licensed | 13 | | under Section 4g of the Cigarette Tax Act . | 14 | | Secondary distributors may not file a claim for credit or | 15 | | refund 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, | 19 | | forges, alters
or counterfeits any stamp provided for herein, | 20 | | (b) causes or procures to be
falsely or fraudulently made, | 21 | | forged, altered or counterfeited any such
stamp, (c) knowingly | 22 | | and wilfully utters, publishes, passes or tenders as
genuine | 23 | | any such false, altered, forged or counterfeited stamp, (d) | 24 | | falsely
or fraudulently makes, forges, alters or counterfeits | 25 | | any tax imprint on an
original package of cigarettes inside a |
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| 1 | | sealed transparent wrapper, (e)
causes or procures falsely or | 2 | | fraudulently to be made, forged, altered or
counterfeited any | 3 | | such tax imprint or (f) knowingly and wilfully utters,
| 4 | | publishes, passes or tenders as genuine any such false, | 5 | | altered, forged or
counterfeited tax imprint, for the purpose | 6 | | of evading the tax imposed by
this Act, shall be guilty of a | 7 | | Class 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 | 11 | | packages of cigarettes, other than by a licensed distributor or | 12 | | transporter. | 13 | | (a) Possession or sale of more than 9 but less than 101 | 14 | | unstamped packages of cigarettes. With the exception of | 15 | | licensed distributors, licensed secondary distributors, or | 16 | | licensed transporters, as defined in Section 9c of the | 17 | | Cigarette Tax Act, any person who has in his or her possession | 18 | | or sells more than 9 but less than 101 original packages of | 19 | | contraband cigarettes is guilty of a Class A misdemeanor and a | 20 | | Class 4 felony for each subsequent offense occurring within 12 | 21 | | months of a prior offense . | 22 | | (b) Possession or sale of more than 100 but less than 251 | 23 | | unstamped packages of cigarettes. With the exception of | 24 | | licensed distributors, licensed secondary distributors, or | 25 | | licensed transporters, as defined in Section 9c of the |
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| 1 | | Cigarette Tax Act, any person who has in his or her possession | 2 | | or sells more than 100 but less than 251 original packages of | 3 | | contraband cigarettes is guilty of a Class A misdemeanor for | 4 | | the first offense and a Class 4 felony for each subsequent | 5 | | offense. | 6 | | (c) Possession or sale of more than 250 but less than 1,001 | 7 | | unstamped packages of cigarettes. With the exception of | 8 | | licensed distributors, licensed secondary distributors, or | 9 | | licensed transporters, as defined in Section 9c of the | 10 | | Cigarette Tax Act, any person who has in his or her possession | 11 | | or sells more than 250 but less than 1,001 original packages of | 12 | | contraband cigarettes is guilty of a Class 4 felony. | 13 | | (d) Possession or sale of more than 1,000 contraband | 14 | | packages of cigarettes. With the exception of licensed | 15 | | distributors, licensed secondary distributors, or licensed | 16 | | transporters, as defined in Section 9c of the Cigarette Tax | 17 | | Act, any person who has in his or her possession or sells, more | 18 | | than 1,000 original packages of contraband cigarettes is guilty | 19 | | of a Class 3 felony. | 20 | | (e) Any person licensed as a distributor, secondary | 21 | | distributor, or transporter, as defined in Section 9c of the | 22 | | Cigarette Tax Act, who has in his or her possession or sells | 23 | | 100 or less original packages of contraband cigarettes is | 24 | | guilty of a Class A misdemeanor and a Class 4 felony for each | 25 | | subsequent offense occurring within 12 months of a prior | 26 | | offense . |
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| 1 | | (f) Any person licensed as a distributor, secondary | 2 | | distributor, or transporter, as defined in Section 9c of the | 3 | | Cigarette Tax Act, who has in his or her possession or sells | 4 | | more than 100 original packages of contraband cigarettes is | 5 | | guilty of a Class 4 felony. | 6 | | (g) Notwithstanding subsections (e) through (f), licensed | 7 | | distributors and transporters, as defined in Section 9c of the | 8 | | Cigarette Tax Act, may possess unstamped packages of | 9 | | cigarettes. Notwithstanding subsections (e) through (f), | 10 | | licensed distributors may possess cigarettes that bear a tax | 11 | | stamp of another state or taxing jurisdiction. Notwithstanding | 12 | | subsections (e) through (f), a licensed distributor or licensed | 13 | | secondary distributor may possess contraband cigarettes | 14 | | returned to the distributor or licensed secondary distributor | 15 | | by a retailer if the distributor or licensed secondary | 16 | | distributor immediately conducts an inventory of the | 17 | | cigarettes being returned, the distributor or licensed | 18 | | secondary distributor and the retailer returning the | 19 | | contraband cigarettes sign the inventory, the distributor or | 20 | | licensed secondary distributor provides a copy of the signed | 21 | | inventory to the retailer, and the distributor or licensed | 22 | | secondary distributor retains the inventory in its books and | 23 | | records and promptly notifies the Department of Revenue. | 24 | | (h) Notwithstanding subsections (a) through (d) of this | 25 | | Section, a retailer unknowingly possessing contraband | 26 | | cigarettes obtained from a licensed distributor or licensed |
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| 1 | | secondary distributor or knowingly possessing contraband | 2 | | cigarettes obtained from a licensed distributor or licensed | 3 | | secondary distributor is not subject to penalties under this | 4 | | Section if the retailer, within 48 hours after discovering that | 5 | | the cigarettes are contraband cigarettes, excluding Saturdays, | 6 | | Sundays, and holidays: (i) notifies the Department and the | 7 | | licensed distributor or licensed secondary distributor from | 8 | | whom the cigarettes were obtained, orally and in writing, that | 9 | | he or she possesses contraband cigarettes obtained from a | 10 | | licensed distributor or licensed secondary distributor; (ii) | 11 | | places the contraband cigarettes in one or more containers and | 12 | | seals those containers; and (iii) places on the containers the | 13 | | following or similar language: "Contraband Cigarettes. Not For | 14 | | Sale." All contraband cigarettes in the possession of a | 15 | | retailer remain subject to forfeiture under the provisions of | 16 | | this Act.
| 17 | | Any retailer who knowingly possesses packages of | 18 | | cigarettes with a counterfeit stamp with intent to sell is | 19 | | guilty of a Class 2 felony. Any retailer who knowingly | 20 | | possesses unstamped packages of cigarettes with intent to sell | 21 | | is guilty of a Class 4 felony. A retailer shall not be liable | 22 | | for unknowingly possessing, selling, or distributing to | 23 | | consumers cigarettes that contain an old stamp if the correct | 24 | | tax was collected at the point of sale and the cigarettes were | 25 | | obtained from a distributor licensed under this Act. | 26 | | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
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| 1 | | Section 20. The Tobacco Products Tax Act of 1995 is amended | 2 | | by changing Sections 10-5, 10-20, 10-25, 10-35, and 10-50 and | 3 | | by 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 | 7 | | enterprise engaged
in, at any location whatsoever, for the | 8 | | purpose of selling tobacco products.
| 9 | | "Cigarette" has the meaning ascribed to the term in Section | 10 | | 1 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, |
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| 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 | 7 | | State penal
institution in which residents of the penal | 8 | | institution produce tobacco
products for sale to persons | 9 | | incarcerated in penal institutions or resident
patients of a | 10 | | State 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 |
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| 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 | 7 | | resident or located, who
makes, manufactures, or fabricates | 8 | | tobacco products as part of a Correctional
Industries program | 9 | | for sale to residents incarcerated in penal institutions or
| 10 | | resident patients of a State operated mental health facility.
| 11 | | "Little cigar" means and includes any roll, made wholly or | 12 | | in part of tobacco, where such roll has an integrated cellulose | 13 | | acetate filter and weighs less than 4 pounds per thousand and | 14 | | the wrapper or cover of which is made in whole or in part of | 15 | | tobacco. | 16 | | "Manufacturer" means any person, wherever resident or | 17 | | located, who
manufactures and sells tobacco products, except a | 18 | | person who makes,
manufactures, or fabricates tobacco products | 19 | | as a part of a Correctional
Industries program for sale to | 20 | | persons incarcerated in penal institutions or
resident | 21 | | patients of a State operated mental health facility.
| 22 | | Beginning on January 1, 2013, "moist snuff" means any | 23 | | finely cut, ground, or powdered tobacco that is not intended to | 24 | | be smoked, but shall not include any finely cut, ground, or | 25 | | powdered tobacco that is intended to be placed in the nasal | 26 | | cavity. |
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| 1 | | "Person" means any natural individual, firm, partnership, | 2 | | association, joint
stock company, joint venture, limited | 3 | | liability company, or public or private
corporation, however | 4 | | formed, or a receiver, executor, administrator, trustee,
| 5 | | conservator, or other representative appointed by order of any | 6 | | court.
| 7 | | "Place of business" means and includes any place where | 8 | | tobacco products
are sold or where tobacco products are | 9 | | manufactured, stored, or kept for
the purpose of sale or | 10 | | consumption, including any vessel, vehicle, airplane,
train, | 11 | | or vending machine.
| 12 | | "Retailer" means any person in this State engaged in the | 13 | | business of selling
tobacco products to consumers in this | 14 | | State, regardless of quantity or number
of sales.
| 15 | | "Sale" means any transfer, exchange, or barter in any | 16 | | manner or by any means
whatsoever for a consideration and | 17 | | includes all sales made by
persons.
| 18 | | "Stamp" or "stamps" mean the indicia required to be affixed | 19 | | on a package of little cigars that evidence payment of the tax | 20 | | on packages of little cigars containing 20 or 25 little cigars | 21 | | under Section 10-10 of this Act. These stamps shall be the same | 22 | | stamps used for cigarettes under the Cigarette Tax Act. | 23 | | "Stamping distributor" means a distributor licensed under | 24 | | this Act and also licensed as a distributor under the Cigarette | 25 | | Tax Act or Cigarette Use Tax Act. | 26 | | "Tobacco products" means any cigars, including little |
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| 1 | | cigars; cheroots; stogies; periques; granulated,
plug cut, | 2 | | crimp cut, ready rubbed, and other smoking tobacco; snuff | 3 | | (including moist snuff) or snuff
flour; cavendish; plug and | 4 | | twist tobacco; fine-cut and other chewing tobaccos;
shorts; | 5 | | refuse scraps, clippings, cuttings, and sweeping of tobacco; | 6 | | and
other kinds and forms of tobacco, prepared in such manner | 7 | | as to be suitable for
chewing or smoking in a pipe or | 8 | | otherwise, or both for chewing and smoking; but
does not | 9 | | include cigarettes as defined in Section 1 of the Cigarette Tax | 10 | | Act or tobacco purchased for the manufacture of
cigarettes by | 11 | | cigarette distributors and manufacturers defined in the
| 12 | | Cigarette Tax Act and persons who make, manufacture, or | 13 | | fabricate
cigarettes as a part of a Correctional Industries | 14 | | program for sale to
residents incarcerated in penal | 15 | | institutions or resident patients of a
State operated mental | 16 | | health facility.
| 17 | | "Wholesale price" means the established list price for | 18 | | which a manufacturer
sells tobacco products to a distributor, | 19 | | before the allowance of any discount,
trade allowance, rebate, | 20 | | or other reduction.
In the absence of such an established list | 21 | | price, the manufacturer's invoice
price at which the | 22 | | manufacturer sells the tobacco product to unaffiliated
| 23 | | distributors, before any discounts, trade allowances, rebates, | 24 | | or other
reductions, shall be presumed to be the wholesale | 25 | | price.
| 26 | | "Wholesaler" means any person, wherever resident or |
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| 1 | | located, engaged in the
business of selling tobacco products to | 2 | | others for the purpose of resale. "Wholesaler", when used in | 3 | | this Act, does not include a person licensed as a distributor | 4 | | under Section 10-20 of this Act unless expressly stated in this | 5 | | Act.
| 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 | 9 | | for any person to engage in
business as a distributor of | 10 | | tobacco products within the
meaning
of this Act without first | 11 | | having obtained a license to do so from the
Department. | 12 | | Application for that license shall be made to the Department in | 13 | | a
form prescribed and furnished by the Department. Each | 14 | | applicant for a license
shall furnish to the Department on a | 15 | | form, signed and verified by the
applicant, the following | 16 | | information:
| 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 | 24 | | applicant who is required
to procure a distributor's license | 25 | | shall file with his or her application a
joint and several |
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| 1 | | bond. The bond shall be executed to the Department of
Revenue, | 2 | | with good and sufficient surety or sureties residing or | 3 | | licensed to do
business within the State of Illinois, | 4 | | conditioned upon the true and faithful
compliance by the | 5 | | licensee with all of the provisions of this Act. The
Department | 6 | | shall fix the amount of the bond for each applicant, taking | 7 | | into
consideration the amount of money expected to become due | 8 | | from the applicant
under this Act. The amount of bond required | 9 | | by the Department shall be an
amount that, in its opinion, will | 10 | | protect the State of Illinois against failure
to pay the amount | 11 | | that may become due from the applicant under this Act, but
the | 12 | | amount of the security required by the Department shall not | 13 | | exceed 3 times
the amount of the applicant's average monthly | 14 | | tax liability, or $50,000,
whichever amount is lower. The bond, | 15 | | a reissue, or a substitute shall be kept
in full force and | 16 | | effect during the entire period covered by the license. A
| 17 | | separate application for license shall be made, and bond filed,
| 18 | | for each place of business at which a person who is required to | 19 | | procure a
distributor's license proposes to engage in business | 20 | | as a distributor under this Act.
| 21 | | The Department, upon receipt of an application and bond in | 22 | | proper form,
shall issue to the applicant a license, in a form | 23 | | prescribed by the
Department, which shall permit the applicant | 24 | | to whom it is issued
to engage in business as a distributor at | 25 | | the place shown on his or her
application. The license shall be | 26 | | issued by the Department without charge
or cost to the |
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| 1 | | applicant. No license issued under this Act is
transferable or | 2 | | assignable. The license shall be conspicuously displayed
in the | 3 | | place of business conducted by the licensee under the
license.
| 4 | | The bonding requirement in this Section does not apply to | 5 | | an applicant
for a distributor's license who is already bonded | 6 | | under the Cigarette
Tax Act or the Cigarette Use Tax Act.
| 7 | | Licenses issued by the Department under this Act shall be valid | 8 | | for a period
not to exceed one year after issuance unless | 9 | | sooner revoked, canceled, or
suspended as provided in this Act.
| 10 | | No license shall be issued to any person who is in default | 11 | | to the State
of Illinois for moneys due under this Act or any | 12 | | other tax Act administered
by the Department.
| 13 | | The Department may, in its discretion, upon application, | 14 | | authorize the
payment of the tax imposed under Section 10-10 by | 15 | | any distributor or
manufacturer not otherwise subject to the | 16 | | tax imposed under this Act who, to
the satisfaction of the | 17 | | Department, furnishes adequate security to ensure
payment of | 18 | | the tax. The distributor or manufacturer shall be issued, | 19 | | without
charge, a license to remit the tax. When so authorized, | 20 | | it shall be the duty
of the distributor or manufacturer to | 21 | | remit the tax imposed upon the wholesale
price of tobacco | 22 | | products sold or otherwise disposed of to retailers or
| 23 | | consumers located in this State, in the
same manner and subject | 24 | | to the same requirements as any other
distributor or
| 25 | | manufacturer licensed under this Act.
| 26 | | The Department may revoke, suspend, or cancel the license |
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| 1 | | of a distributor
of roll-your-own tobacco (as that term is used | 2 | | in Section 10 of the Tobacco
Product
Manufacturers' Escrow Act) | 3 | | under this Act if the tobacco product manufacturer,
as
defined | 4 | | in Section 10 of the Tobacco Product Manufacturers' Escrow Act, | 5 | | that
made or sold the roll-your-own tobacco has failed to | 6 | | become a participating
manufacturer, as defined in subdivision | 7 | | (a)(1) of Section 15 of the Tobacco
Product Manufacturers' | 8 | | Escrow Act, or has failed to create a qualified escrow
fund for | 9 | | any roll-your-own tobacco manufactured by the tobacco product
| 10 | | manufacturer
and sold in this State or otherwise failed to | 11 | | bring itself into compliance with
subdivision (a)(2) of Section | 12 | | 15
of the Tobacco Product Manufacturers' Escrow Act.
| 13 | | Any person aggrieved by any decision of the Department | 14 | | under this Section
may, within 20 days after notice of that | 15 | | decision, protest and request a
hearing, whereupon the | 16 | | Department must give notice to that person of the time
and | 17 | | place fixed for the hearing and must hold a hearing in | 18 | | conformity with
the provisions of this Act and then issue its | 19 | | final administrative decision in
the matter to that person. In | 20 | | the absence of such a protest within 20 days,
the Department's | 21 | | decision becomes final without any further determination
being | 22 | | made 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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| 1 | | 2016, no person may engage in business as a retailer of tobacco | 2 | | products in this State without first having obtained a license | 3 | | from the Department. Application for license shall be made to | 4 | | the Department, by electronic means, in a form prescribed by | 5 | | the Department. Each applicant for a license under this Section | 6 | | shall furnish to the Department, in an electronic format | 7 | | established 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 | 16 | | retailer's license shall be $75. The fee will be deposited into | 17 | | the Tax Compliance and Administration Fund and shall be used | 18 | | for the cost of tobacco retail inspection and contraband | 19 | | tobacco and tobacco smuggling with at least two-thirds of the | 20 | | money being used for contraband tobacco and tobacco smuggling | 21 | | operations and enforcement. | 22 | | Each applicant for license shall pay such fee to the | 23 | | Department at the time of submitting its application for | 24 | | license to the Department. The Department shall require an | 25 | | applicant for a license under this Section to electronically | 26 | | file and pay the fee. |
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| 1 | | A separate annual license fee shall be paid for each place | 2 | | of business at which a person who is required to procure a | 3 | | retailer's license under this Section proposes to engage in | 4 | | business as a retailer in Illinois under this Act. | 5 | | The following are ineligible to receive a retailer's | 6 | | license 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 | 20 | | fee, in proper form, from a person who is eligible to receive a | 21 | | retailer's license under this Act, shall issue to such | 22 | | applicant a license in form as prescribed by the Department, | 23 | | which license shall permit the applicant to which it is issued | 24 | | to engage in business as a retailer under this Act at the place | 25 | | shown in his application. All licenses issued by the Department | 26 | | under this Section shall be valid for a period not to exceed |
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| 1 | | one year after issuance unless sooner revoked, canceled or | 2 | | suspended as provided in this Act. No license issued under this | 3 | | Section is transferable or assignable. Such license shall be | 4 | | conspicuously displayed in the place of business conducted by | 5 | | the licensee in Illinois under such license. A person who | 6 | | obtains a license as a retailer who ceases to do business as | 7 | | specified in the license, or who never commenced business, or | 8 | | who obtains a distributor's license, or whose license is | 9 | | suspended or revoked, shall immediately surrender the license | 10 | | to the Department. The Department shall not issue a license to | 11 | | a retailer unless the retailer is also validly registered under | 12 | | the Retailers Occupation Tax Act. | 13 | | A retailer as defined under this Act need not obtain an | 14 | | additional license under this Act, but shall be deemed to be | 15 | | sufficiently licensed by virtue of his being properly licensed | 16 | | as a retailer under Section 4g of the Cigarette Tax Act. | 17 | | Any person aggrieved by any decision of the Department | 18 | | under this subsection may, within 30 days after notice of the | 19 | | decision, protest and request a hearing. Upon receiving a | 20 | | request for a hearing, the Department shall give notice to the | 21 | | person requesting the hearing of the time and place fixed for | 22 | | the hearing and shall hold a hearing in conformity with the | 23 | | provisions of this Act and then issue its final administrative | 24 | | decision in the matter to that person. In the absence of a | 25 | | protest and request for a hearing within 30 days, the | 26 | | Department's decision shall become final without any further |
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| 1 | | determination being made or notice given. | 2 | | (35 ILCS 143/10-22 new) | 3 | | Sec. 10-22. Purchases of tobacco products by licensed | 4 | | retailers. A person who possesses a retailer's license under | 5 | | Section 10-21 of this Act shall obtain tobacco products for | 6 | | sale only from a licensed distributor or licensed secondary | 7 | | distributor.
| 8 | | (35 ILCS 143/10-25)
| 9 | | Sec. 10-25. License actions. | 10 | | (a) The Department may, after notice and a hearing,
revoke, | 11 | | cancel, or suspend the license of any distributor or retailer | 12 | | who violates any of
the provisions of this Act. The notice | 13 | | shall specify the alleged violation or
violations upon which | 14 | | the revocation, cancellation, or suspension proceeding is
| 15 | | based.
| 16 | | (b) The Department may revoke, cancel, or suspend the | 17 | | license of any
distributor for a violation of the Tobacco | 18 | | Product Manufacturers' Escrow
Enforcement Act as provided in | 19 | | Section 20 of that Act.
| 20 | | (c) If the retailer has a training program that facilitates | 21 | | compliance with minimum-age tobacco laws, the Department shall | 22 | | suspend for 3 days the license of that retailer for a fourth or | 23 | | subsequent violation of the Prevention of Tobacco Use by Minors | 24 | | and Sale and Distribution of Tobacco Products Act, as provided |
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| 1 | | in subsection (a) of Section 2 of that Act. For the purposes of | 2 | | this Section, any violation of subsection (a) of Section 2 of | 3 | | the Prevention of Tobacco Use by Minors and Sale and | 4 | | Distribution of Tobacco Products Act occurring at the | 5 | | retailer's licensed location, during a 24-month period, shall | 6 | | be counted as a violation against the retailer. | 7 | | If the retailer does not have a training program that | 8 | | facilitates compliance with minimum-age tobacco laws, the | 9 | | Department shall suspend for 3 days the license of that | 10 | | retailer for a second violation of the Prevention of Tobacco | 11 | | Use by Minors and Sale and Distribution of Tobacco Products | 12 | | Act, as provided in subsection (a-5) of Section 2 of that Act. | 13 | | If the retailer does not have a training program that | 14 | | facilitates compliance with minimum-age tobacco laws, the | 15 | | Department shall suspend for 7 days the license of that | 16 | | retailer for a third violation of the Prevention of Tobacco Use | 17 | | by Minors and Sale and Distribution of Tobacco Products Act, as | 18 | | provided in subsection (a-5) of Section 2 of that Act. | 19 | | If the retailer does not have a training program that | 20 | | facilitates compliance with minimum-age tobacco laws, the | 21 | | Department shall suspend for 30 days the license of a retailer | 22 | | for a fourth or subsequent violation of the Prevention of | 23 | | Tobacco Use by Minors and Sale and Distribution of Tobacco | 24 | | Products Act, as provided in subsection (a-5) of Section 2 of | 25 | | that Act. | 26 | | A training program that facilitates compliance with |
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| 1 | | minimum-age tobacco laws must include at least the following | 2 | | elements: (i) it must explain that only individuals displaying | 3 | | valid identification demonstrating that they are 18 years of | 4 | | age or older shall be eligible to purchase cigarettes or | 5 | | tobacco products; (ii) it must explain where a clerk can check | 6 | | identification for a date of birth; and (iii) it must explain | 7 | | the penalties that a clerk and retailer are subject to for | 8 | | violations of the Prevention of Tobacco Use by Minors and Sale | 9 | | and Distribution of Tobacco Products Act. | 10 | | (d) The Department may, by application to any circuit | 11 | | court, obtain an injunction
restraining any person who engages | 12 | | in business as a distributor of tobacco
products without a | 13 | | license (either because his or her license has been revoked,
| 14 | | canceled, or suspended or because of a failure to obtain a | 15 | | license in the first
instance) from engaging in that business | 16 | | until that person, as if that person
were a new applicant for a | 17 | | license, complies with all of the conditions,
restrictions, and | 18 | | requirements of Section 10-20 of this Act and qualifies for
and | 19 | | obtains a license. Refusal or neglect to obey the order of the | 20 | | court 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 | 25 | | keep complete and accurate records of tobacco products held, |
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| 1 | | purchased,
manufactured, brought in or caused to be brought in | 2 | | from without the State, and
tobacco products sold, or otherwise | 3 | | disposed of, and shall preserve and keep
all invoices, bills of | 4 | | lading, sales records, and copies of bills
of sale, the | 5 | | wholesale price for tobacco products sold or otherwise disposed
| 6 | | of, an inventory of tobacco products prepared as of December 31 | 7 | | of each year or
as of the last day of the distributor's fiscal | 8 | | year if he or she files federal
income tax returns on the basis | 9 | | of a fiscal year, and other pertinent papers
and documents | 10 | | relating to the manufacture, purchase, sale, or disposition of
| 11 | | tobacco products. Every sales invoice issued by a licensed | 12 | | distributor to a retailer in this State shall contain the | 13 | | distributor's Tobacco Products License number. | 14 | | (b) Every retailer, as defined in Section 10-5, shall keep | 15 | | complete and accurate records of tobacco products held, | 16 | | purchased, sold, or otherwise disposed of, and shall preserve | 17 | | and keep all invoices, bills of lading, sales records, and | 18 | | copies of bills of sale, returns and other pertinent papers and | 19 | | documents relating to the purchase, sale, or disposition of | 20 | | tobacco products. Such records need not be maintained on the | 21 | | licensed premises, but must be maintained in the State of | 22 | | Illinois; however, if access is available electronically, the | 23 | | records may be maintained out of state. However, all original | 24 | | invoices or copies thereof covering purchases of tobacco | 25 | | products must be retained on the licensed premises for a period | 26 | | of 90 days after such purchase, unless the Department has |
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| 1 | | granted a waiver in response to a written request in cases | 2 | | where records are kept at a central business location within | 3 | | the State of Illinois or in cases where records that are | 4 | | available electronically are maintained out of state. | 5 | | (c) Books, records, papers, and documents that are
required | 6 | | by this Act to be kept shall, at all times during the usual | 7 | | business
hours of the day, be subject to inspection by the | 8 | | Department or its duly
authorized agents and employees. The | 9 | | books, records, papers, and documents for
any period with | 10 | | respect to which the Department is authorized to issue a notice
| 11 | | of tax liability shall be preserved until the expiration of | 12 | | that 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. | 16 | | Every licensed distributor of tobacco products in this State is | 17 | | required to show proof of the tax having been paid as required | 18 | | by this Act by displaying its Tobacco Products License number | 19 | | on every sales invoice issued to a retailer in this State. No | 20 | | retailer shall possess tobacco products without either a proper | 21 | | invoice indicating that the tobacco products tax was paid by a | 22 | | distributor for the tobacco products in the retailer's | 23 | | possession or other proof that the tax was paid by the retailer | 24 | | if it has purchased tobacco products on which tax has not been | 25 | | paid as required by this Act. Failure to comply with the |
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| 1 | | provisions of this paragraph may be grounds for revocation of a | 2 | | distributor's or retailer's license in accordance with Section | 3 | | 10-25 of this Act or Section 6 of the Cigarette Tax Act. In | 4 | | addition, the Department may impose a civil penalty not to | 5 | | exceed $1,000 for each violation, which shall be deposited into | 6 | | the Tax Compliance and Administration Fund.
| 7 | | (35 ILCS 143/10-50)
| 8 | | Sec. 10-50. Violations and penalties. When the amount due | 9 | | is under $300,
any distributor who fails to file a return, | 10 | | willfully wilfully fails or refuses to
make any payment to the | 11 | | Department of the tax imposed by this Act, or files
a | 12 | | fraudulent return, or any officer or agent of a corporation | 13 | | engaged in the
business of distributing tobacco products to | 14 | | retailers and consumers
located in this State who signs a | 15 | | fraudulent
return filed on behalf of the corporation, or any | 16 | | accountant or other agent
who knowingly enters false | 17 | | information on the return of any taxpayer under this
Act is | 18 | | guilty of a Class 4 felony.
| 19 | | Any person who violates any provision of Sections Section | 20 | | 10-20 , 10-21, or 10-22 of this Act, fails
to keep books and | 21 | | records as required under this Act, or willfully wilfully | 22 | | violates a
rule or regulation of the Department for the | 23 | | administration and enforcement of
this Act is guilty of a Class | 24 | | 4 felony. A person commits a separate offense on
each day that | 25 | | he or she engages in business in violation of Sections Section |
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| 1 | | 10-20 , 10-21, or 10-22 of
this Act.
| 2 | | When the amount due is under $300, any person who accepts | 3 | | money that is due
to the Department under this Act from a | 4 | | taxpayer for the purpose of acting as
the taxpayer's agent to | 5 | | make the payment to the Department, but who fails to
remit the | 6 | | payment to the Department when due, is guilty of a Class 4 | 7 | | felony.
| 8 | | Any person who violates any provision of Sections 10-20, | 9 | | 10-21 and 10-22 of this Act, fails to keep books and records as | 10 | | required under this Act, or willfully violates a rule or | 11 | | regulation of the Department for the administration and | 12 | | enforcement of this Act is guilty of a business offense and may | 13 | | be fined up to $5,000. A person commits a separate offense on | 14 | | each day that he or she engages in business in violation of | 15 | | Sections 10-20, 10-21 and 10-22 of this Act. | 16 | | When the amount due is $300 or more, any distributor who | 17 | | files,
or causes to be filed, a fraudulent return, or any | 18 | | officer or agent of a
corporation engaged in the business of | 19 | | distributing tobacco products
to retailers and consumers | 20 | | located in this State who files or causes to be
filed or signs | 21 | | or causes
to be signed a fraudulent return filed on behalf of | 22 | | the corporation, or
any accountant or other agent who knowingly | 23 | | enters false information on
the return of any taxpayer under | 24 | | this Act is guilty of a Class 3 felony.
| 25 | | When the amount due is $300 or more, any person engaged in | 26 | | the business
of distributing tobacco products to retailers and |
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| 1 | | consumers located in this
State who fails to file a return,
| 2 | | willfully wilfully fails or refuses to make any payment to the | 3 | | Department of the tax
imposed by this Act, or accepts money | 4 | | that is due to the Department under
this Act from a taxpayer | 5 | | for the purpose of acting as the taxpayer's agent to
make | 6 | | payment to the Department but fails to remit such payment to | 7 | | the
Department when due is guilty of a Class 3 felony.
| 8 | | When the amount due is under $300, any retailer who fails | 9 | | to file a return, willfully fails or refuses to make any | 10 | | payment to the Department of the tax imposed by this Act, or | 11 | | files a fraudulent return, or any officer or agent of a | 12 | | corporation engaged in the retail business of selling tobacco | 13 | | products to purchasers of tobacco products for use and | 14 | | consumption located in this State who signs a fraudulent return | 15 | | filed on behalf of the corporation, or any accountant or other | 16 | | agent who knowingly enters false information on the return of | 17 | | any taxpayer under this Act is guilty of a Class A misdemeanor | 18 | | for a first offense and a Class 4 felony for each subsequent | 19 | | offense. | 20 | | When the amount due is $300 or more, any retailer who fails | 21 | | to file a return, willfully fails or refuses to make any | 22 | | payment to the Department of the tax imposed by this Act, or | 23 | | files a fraudulent return, or any officer or agent of a | 24 | | corporation engaged in the retail business of selling tobacco | 25 | | products to purchasers of tobacco products for use and | 26 | | consumption located in this State who signs a fraudulent return |
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| 1 | | filed on behalf of the corporation, or any accountant or other | 2 | | agent who knowingly enters false information on the return of | 3 | | any taxpayer under this Act is guilty of a Class 4 felony. | 4 | | Any person whose principal place of business is in this | 5 | | State and
who is charged with a violation under this Section | 6 | | shall be
tried in the county where his or her principal place | 7 | | of business is
located unless he or she asserts a right to be | 8 | | tried in another venue.
If the taxpayer does not have his or | 9 | | her principal place of business
in this State, however, the | 10 | | hearing must be held in Sangamon County unless
the taxpayer | 11 | | asserts a right to be tried in another venue.
| 12 | | Any taxpayer or agent of a taxpayer who with the intent to | 13 | | defraud
purports to make a payment due to the Department by | 14 | | issuing or delivering a
check or other order upon a real or | 15 | | fictitious depository for the payment
of money, knowing that it | 16 | | will not be paid by the depository, is
guilty of a deceptive | 17 | | practice in violation of Section 17-1 of the Criminal
Code of | 18 | | 2012.
| 19 | | A prosecution for a violation described in this Section may | 20 | | be commenced
within 3 years after the commission of the act | 21 | | constituting 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 | 25 | | without a license. Any person who knowingly acts as a retailer |
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| 1 | | of tobacco products in this State without first having obtained | 2 | | a license to do so in compliance with Section 10-21 of this Act | 3 | | or a license in compliance with Section 4g of the Cigarette Tax | 4 | | Act shall be guilty of a Class A misdemeanor for the first | 5 | | offense and a Class 4 felony for a second or subsequent | 6 | | offense. Each day such person operates as a retailer without a | 7 | | license constitutes a separate offense. | 8 | | Section 25. The Prevention of Tobacco Use by
Minors and | 9 | | Sale and Distribution of Tobacco Products Act is amended by | 10 | | changing 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 | 13 | | minors; prohibition on the distribution of tobacco samples to | 14 | | any person; use of identification cards; vending machines; | 15 | | lunch
wagons; out-of-package sales.
| 16 | | (a) No minor under 18 years of age shall buy any tobacco | 17 | | product. No person shall sell, buy
for, distribute samples of | 18 | | or furnish any tobacco product to any minor under 18 years of | 19 | | age. | 20 | | (a-5) No minor under 16 years of
age may sell any tobacco | 21 | | product at a retail
establishment selling tobacco products. | 22 | | This subsection does not apply
to a sales clerk in a | 23 | | family-owned business which can prove that the sales
clerk
is | 24 | | in 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 | 2 | | facilitation of obtaining any tobacco product shall display or | 3 | | use a false or forged identification card or transfer, alter, | 4 | | or deface an identification card.
| 5 | | (a-7) No minor under 18 years of age shall possess any | 6 | | cigar, cigarette,
smokeless tobacco, or tobacco in any of its | 7 | | forms. | 8 | | (a-8) A person shall not distribute without charge samples | 9 | | of 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 | 17 | | a 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 | 13 | | through a vending machine
only if such tobacco products are not | 14 | | placed together with any non-tobacco product, other than | 15 | | matches, in the vending machine and the vending machine is in
| 16 | | any 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 | 4 | | product in this Section, including but not limited to a single | 5 | | or loose cigarette, that is not contained within a sealed | 6 | | container, pack, or package as provided by the manufacturer, | 7 | | which container, pack, or package bears the health warning | 8 | | required by federal law, is prohibited.
| 9 | | (e) It is not a violation of this Act for a person under 18 | 10 | | years of age to purchase or possess a cigar, cigarette, | 11 | | smokeless tobacco or tobacco in any of its forms if the person | 12 | | under the age of 18 purchases or is given the cigar, cigarette, | 13 | | smokeless tobacco or tobacco in any of its forms from a retail | 14 | | seller of tobacco products or an employee of the retail seller | 15 | | pursuant to a plan or action to investigate, patrol, or | 16 | | otherwise conduct a "sting operation" or enforcement action | 17 | | against a retail seller of tobacco products or a person | 18 | | employed by the retail seller of tobacco products or on any | 19 | | premises authorized to sell tobacco products to determine if | 20 | | tobacco products are being sold or given to persons under 18 | 21 | | years of age if the "sting operation" or enforcement action is | 22 | | approved by , conducted by, or conducted on behalf of the | 23 | | Department of State Police, the county sheriff, a municipal | 24 | | police department , the Department of Revenue , the Department of | 25 | | Public Health, or a local health department. The results of any | 26 | | sting operation or enforcement action, including the name of |
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| 1 | | the clerk, shall be provided to the retail seller within 7 | 2 | | business days. | 3 | | (Source: P.A. 95-905, eff. 1-1-09; 96-179, eff. 8-10-09; | 4 | | 96-446, 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 | 8 | | Section 1 or Section 1.5 of this Act is guilty of a petty | 9 | | offense. For the first offense in a 24-month period, the person | 10 | | shall be fined $200 if his or her employer has a training | 11 | | program that facilitates compliance with minimum-age tobacco | 12 | | laws. For the second offense in a 24-month period, the person | 13 | | shall be fined $400 if his or her employer has a training | 14 | | program that facilitates compliance with minimum-age tobacco | 15 | | laws. For the third offense in a 24-month period, the person | 16 | | shall be fined $600 if his or her employer has a training | 17 | | program that facilitates compliance with minimum-age tobacco | 18 | | laws. For the fourth or subsequent offense in a 24-month | 19 | | period, the person shall be fined $800 if his or her employer | 20 | | has a training program that facilitates compliance with | 21 | | minimum-age tobacco laws. For the purposes of this subsection, | 22 | | the 24-month period shall begin with the person's first | 23 | | violation of the Act. The penalties in this subsection are in | 24 | | addition to any other penalties prescribed under the Cigarette | 25 | | Tax 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 | 2 | | Section 1 or Section 1.5 of this Act is guilty of a petty | 3 | | offense. For the first offense, the retailer shall be fined | 4 | | $200 if it does not have a training program that facilitates | 5 | | compliance with minimum-age tobacco laws. For the second | 6 | | offense, the retailer shall be fined $400 if it does not have a | 7 | | training program that facilitates compliance with minimum-age | 8 | | tobacco laws. For the third offense, the retailer shall be | 9 | | fined $600 if it does not have a training program that | 10 | | facilitates compliance with minimum-age tobacco laws. For the | 11 | | fourth or subsequent offense in a 24-month period, the retailer | 12 | | shall be fined $800 if it does not have a training program that | 13 | | facilitates compliance with minimum-age tobacco laws. For the | 14 | | purposes of this subsection, the 24-month period shall begin | 15 | | with the person's first violation of the Act. The penalties in | 16 | | this subsection are in addition to any other penalties | 17 | | prescribed under the Cigarette Tax Act and the Tobacco Products | 18 | | Tax Act of 1995. | 19 | | (a-6) For the purpose of this Act, a training program that | 20 | | facilitates compliance with minimum-age tobacco laws must | 21 | | include at least the following elements: (i) it must explain | 22 | | that only individuals displaying valid identification | 23 | | demonstrating that they are 18 years of age or older shall be | 24 | | eligible to purchase cigarettes or tobacco products; (ii) it | 25 | | must explain where a clerk can check identification for a date | 26 | | of birth; and (iii) it must explain the penalties that a clerk |
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| 1 | | and retailer are subject to for violations of the Prevention of | 2 | | Tobacco Use by Minors and Sale and Distribution of Tobacco | 3 | | Products Act. | 4 | | Any person who violates subsection (a), (a-5), or (a-6) of | 5 | | Section 1
or Section 1.5 of this Act is guilty of a
petty | 6 | | offense and
for the first offense
shall be fined $200, $400 for | 7 | | the
second offense in a 12-month period, and
$600 for the third | 8 | | or any
subsequent
offense in a 12-month period.
| 9 | | (b) If a minor violates subsection (a-7) of Section 1 he or | 10 | | she is guilty of a petty offense and the court may
impose a | 11 | | sentence 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 | 14 | | misdemeanor.
| 15 | | (c) A second violation by a minor of subsection (a-7) of | 16 | | Section 1 that occurs
within 12 months after the first | 17 | | violation is punishable by a fine of $75 $50 and 50
25
hours of | 18 | | community service.
| 19 | | (d) A third or subsequent violation by a minor of | 20 | | subsection (a-7) of Section
1
that
occurs within 12 months | 21 | | after the first violation is punishable by a $200 $100
fine
and | 22 | | 50 30 hours of community service.
| 23 | | (e) Any second or subsequent violation not within the | 24 | | 12-month time period
after
the first violation is punishable as | 25 | | provided for a first violation.
| 26 | | (f) If a minor is convicted of or placed on supervision for |
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| 1 | | a violation of
subsection (a-6) or (a-7) of Section 1, the | 2 | | court may, in its discretion, and upon
recommendation by the | 3 | | State's Attorney, order that minor and his or her parents
or | 4 | | legal
guardian to attend a smoker's education or youth | 5 | | diversion program if that
program is available in the | 6 | | jurisdiction where the offender resides.
Attendance at a | 7 | | smoker's education or youth diversion program
shall be | 8 | | time-credited against any community service time imposed for | 9 | | any
first violation of subsection (a-7) of Section 1. In | 10 | | addition to any other
penalty
that the court may impose for a | 11 | | violation of subsection (a-7) of Section 1, the
court, upon | 12 | | request by the State's Attorney, may in its discretion
require
| 13 | | the offender to remit a fee for his or her attendance at a | 14 | | smoker's
education or
youth diversion program.
| 15 | | (g) For purposes of this Section, "smoker's education
| 16 | | program"
or
"youth diversion program" includes, but is not | 17 | | limited to, a seminar designed
to educate a person on the | 18 | | physical and psychological effects of smoking
tobacco products | 19 | | and the health consequences of smoking tobacco products
that | 20 | | can be conducted with a locality's youth diversion program.
| 21 | | (h) All moneys collected as fines for violations of | 22 | | subsection (a), (a-5), (a-6), or (a-7) of
Section 1
shall be | 23 | | distributed 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 | 4 | | Section 1.5 shall be reported to the Department of Revenue | 5 | | within 7 business days. | 6 | | (Source: P.A. 98-350, eff. 1-1-14.)
| 7 | | Section 99. Effective date. This Act takes effect January | 8 | | 1, 2016.
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