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91_HB0461
LRB9101589LDcs
1 AN ACT in relation to tobacco products, creating a new
2 Act, and amending certain named Acts, and repealing certain
3 Acts.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 1. Short title. This Act may be cited as the
7 Illinois Underage Purchase, Possession, and Sales Prevention
8 Act of 1999.
9 Section 5. Definitions. For purposes of this Act:
10 "Distribute" means to give, deliver, sell, furnish, or
11 provide tobacco products, including tobacco product samples,
12 to the ultimate consumer.
13 "Enforcement agency" means the Illinois Liquor Control
14 Commission.
15 "Inspection" means the inspection described in Section
16 1926(b) of the Federal Public Health Service Act (42 U.S.C.
17 300x-26(b)).
18 "Person" means any natural person, company, corporation,
19 firm, partnership, organization, or other legal entity.
20 "Proof of age" means a driver's license or other
21 documentary or written evidence that purports to establish
22 that the person is 18 years of age or older.
23 "Sample" means a tobacco product distributed for members
24 of the general public at no cost for purposes of promoting
25 the product.
26 "Seller" means any person who distributes tobacco
27 products for commercial purposes.
28 "Tobacco product" means any product that contains tobacco
29 and is intended for human consumption.
30 "Vending machine" means any mechanical, electric, or
31 electronic self-service device which, upon insertion of
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1 money, tokens, or any other form of payment, automatically
2 dispenses tobacco products.
3 Section 10. Prohibition of sale or distribution of
4 tobacco products to persons under 18 years of age.
5 (a) No person shall sell, buy for, or distribute any
6 tobacco product to another person who has not attained 18
7 years of age; provided however, that it shall not be unlawful
8 to distribute a tobacco product to any employee when required
9 in the performance of the employee's duties.
10 (b) It shall be an affirmative defense to any action
11 brought pursuant to this Section if the defendant shows any
12 one of the following:
13 (1) That the purchaser or recipient falsely
14 represented that he or she had attained the age of 18;
15 (2) That the purchaser or recipient presented
16 purported proof of age showing that he or she had
17 attained the age of 18;
18 (3) That the appearance of the purchaser or
19 recipient was such that an ordinary and prudent person
20 would believe that the purchaser had attained the age of
21 18; or
22 (4) That the sale was made in good faith and
23 reasonable reliance on the purported proof of age and
24 appearance of the purchaser or recipient in the belief by
25 the seller that the purchaser or recipient had attained
26 the age of 18.
27 (c) A person who distributes tobacco products at retail
28 shall not be convicted of a violation of this Section unless
29 the person under 18 years of age who purchased, attempted to
30 purchase, or possessed tobacco products has been convicted
31 under Section 15, provided such purchase, attempt to
32 purchase, or possession did not occur pursuant to Section 45.
33 (d) Any person with a license under Section 40 and any
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1 employee or agent of such person who violates this Section is
2 guilty of a petty offense and for the first offense shall be
3 fined $200, for the second offense in a 12-month period,
4 $400, and for the third or subsequent offense in a 12-month
5 period, $500. Any other person who sells or distributes
6 tobacco products in violation of this Section is guilty of a
7 petty offense and for the first offense shall be fined $200,
8 for the second offense in a 12-month period, $400, and for
9 the third or subsequent offense in a 12-month period, $500.
10 (e) For purposes of determining the liability of a
11 person controlling franchises or business operations in
12 multiple locations for a second or subsequent violation of
13 this Section, each individual franchise or business location
14 shall be deemed a separate entity.
15 Section 15. Juvenile purchase, possession, and
16 consumption of tobacco.
17 (a) No person under 18 years of age shall attempt to
18 purchase, purchase, accept receipt of, possess, use, or offer
19 to any person any purported proof of age that is false,
20 fraudulent, or not actually his or her own, for the purpose
21 of purchasing or receiving any tobacco product; provided,
22 however, that it shall not be unlawful for such a person to
23 accept receipt of a tobacco product from an employer when
24 required in the performance of the employee's duties.
25 (b) Any person under 18 years of age who violates this
26 Section shall be guilty of a petty offense and shall be
27 penalized as follows:
28 (1) For the first offense, by a mandatory
29 suspension of his or her Illinois driver's license (or in
30 the case of a person without an Illinois driver's
31 license, a postponement of driver's license application
32 eligibility) for a period not to exceed 60 days.
33 (2) For a second offense, a $200 fine and a
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1 mandatory suspension of his or her Illinois driver's
2 license (or in the case of a person without an Illinois
3 driver's license, a postponement of driver's license
4 application eligibility) for a 90-day period.
5 (3) For a third or subsequent offense, a $500 fine
6 and a mandatory suspension of his or her Illinois
7 driver's license (or in the case of a person without an
8 Illinois driver's license a postponement of driver's
9 license application eligibility) for a 180-day period.
10 In geographic areas in which educational programs
11 addressing the risks of tobacco consumption are available, a
12 court may also require participation in such an educational
13 program.
14 Section 20. Training of retail clerks.
15 (a) Every person engaged in the business of selling
16 tobacco products at retail shall notify each individual
17 employed by that person as a retail sales clerk that State
18 law prohibits the sale or distribution of tobacco products to
19 any person under 18 years of age and out-of-package sales of
20 cigarettes and smokeless tobacco. This notice shall be
21 provided before the individual commences work as a retail
22 sales clerk, or, in the case of an individual employed as a
23 retail sales clerk on the effective date of this Act, within
24 30 days of that date. The individual shall signify that he
25 or she has received the notice required by this Section by
26 signing a form stating as follows:
27 "I understand that State law prohibits the sale or
28 distribution of tobacco products to persons under 18
29 years of age and out-of-package sales of cigarettes and
30 smokeless tobacco products. I promise, as a condition of
31 my employment, to observe this law."
32 Each form signed by such individual shall indicate the date
33 of signature. The employer shall retain the form signed by
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1 each individual employed as a retail sales clerk until 120
2 days after the individual has left the employer's employ.
3 (b) Any employer who fails to comply with the
4 requirements of this Section is guilty of a petty offense and
5 for the first offense shall be fined $200, for the second
6 offense in a 12-month period, $400, and for the third or
7 subsequent offense in a 12-month period, $500. An employer
8 who complies with the requirements o this Section and who has
9 in effect a training program designed to make his or her
10 employees aware of how to comply with the requirements of
11 Section 10 shall not be subject to any civil penalty or
12 suspension, revocation, denial, or nonrenewal of a license by
13 reason of a sale to a person 18 years of age by a retail
14 sales clerk if the sales clerk had not been convicted of a
15 first offense under that Section prior to such sale.
16 Section 25. Signs.
17 (a) On and after the effective date of this Act, every
18 person who sells tobacco products at retail over the counter
19 shall post and maintain in legible condition, a sign stating
20 the following:
21 "STATE LAW STRICTLY PROHIBITS THE SALE OF TOBACCO
22 PRODUCTS TO PERSONS UNDER 18 YEARS OF AGE, THE PURCHASE
23 OF OR ATTEMPT TO PURCHASE SUCH TOBACCO PRODUCTS BY
24 PERSONS UNDER 18 YEARS OF AGE, OR THE OFFERING OF FALSE
25 PROOF OF AGE IN ORDER TO PURCHASE SUCH PRODUCTS."
26 (b) Any person who fails to place and maintain the sign
27 required by this Section 25 is guilty of a petty offense and
28 shall be fined not more than $100.
29 Section 30. Restriction on vending machines.
30 (a) No person shall sell tobacco products through a
31 vending machine unless the vending machine is located:
32 (1) In an area of factories, businesses, offices,
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1 private clubs, and other places not open to the general
2 public;
3 (2) In an area that is open to the public but to
4 which persons under the age of 18 years are denied
5 access;
6 (3) In a place where alcoholic beverages are sold
7 for consumption on the premises;
8 (4) In another places, but only if the machine (i)
9 is under the continuous supervision of the owner or
10 lessee of the premises or an employee thereof, (ii) can
11 be operated only by the activation of an electronic
12 switch by the owner or lessee of the premises or an
13 employee thereof prior to each purchase, and (iii) is
14 inaccessible to the public when the establishment is
15 closed.
16 (b) A person who violates this Section 30 is guilty of a
17 petty offense and shall be fined $200 for the first offense,
18 $400 for the second offense in a 12-month period, and $500
19 for the third or any subsequent offense in a 12-month period.
20 Section 35. Prohibition on distribution of tobacco
21 products other than in sealed packages.
22 (a) No person shall sell cigarettes or smokeless tobacco
23 products other than in an unopened package originating with
24 the manufacturer.
25 (b) A person who violates this Section 35 is guilty of a
26 petty offense and shall be fined $200 for the first offense,
27 $400 for the second offense in a 12-month period, and $500
28 for the third or any subsequent offense in a 12-month period.
29 Section 40. Licensing of tobacco product retailers.
30 (a) No person shall engage in the retail sale of tobacco
31 products over the counter or through any vending machine on
32 or after 180 days after the effective date of this Act,
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1 unless the person is authorized to do so by a license issued
2 pursuant to this Section 40, or is an employee or agent of a
3 person who has been issued a license pursuant to this Section
4 40. For purposes of this Section 40, the person deemed to be
5 engaged in the retail sale of tobacco products through a
6 vending machine shall be the owner of the business
7 establishment where the vending machine is located
8 (b) The annual license fee for the retail sale of
9 tobacco products shall be as follows:
10 (1) Twenty-five dollars for each place of business
11 where tobacco products are sold over the counter at
12 retail. A separate license shall be required for each
13 place of business where tobacco products are sold over
14 the counter at retail.
15 (2) Twenty-five dollars for each vending machine.
16 A separate license shall be required for each vending
17 machine through which tobacco products are sold.
18 (c) Every application for a license under this Section
19 40 shall be made upon a form provided by the Enforcement
20 Agency and shall set forth the name under which the applicant
21 transacts or intends to transact business, the location of
22 the place of business or vending machine for which the
23 license is to be issued, and any other identifying
24 information that the Enforcement Agency may require.
25 (d) Every license issued by the Enforcement Agency
26 pursuant to this Section 40 shall be valid for one year from
27 the date of issuance and shall be renewed upon application
28 except as otherwise provided in this Act. Upon notification
29 of a change of address, if required by the Enforcement
30 Agency, a license shall be reissued for the new address
31 without the filing of a new application.
32 (e) On or before 90 days after the effective date of
33 this Act, the Enforcement Agency shall notify every person in
34 this State who engages in the retail sale of tobacco
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1 products, including retail sale through vending machines, of
2 the license requirements imposed by this Section 40.
3 (f) The Agency shall issue a license or renewal of a
4 license within 30 days of receiving a properly completed
5 application and the applicable license fee. A license or
6 renewal thereof shall not be withheld or denied; provided,
7 however, that (i) no license shall be issued for the sale of
8 tobacco products through a vending machine that dispenses any
9 product in addition to tobacco products, and (ii) no license
10 shall be issued for the sale of tobacco products through a
11 vending machine unless the applicant certifies compliance
12 with the restrictions set forth in Section 30(a) with respect
13 to the machine for which the license is issued. No terms or
14 conditions shall be imposed by any governmental body for the
15 issuance, maintenance, or renewal of a license for the retail
16 sale of tobacco products except as specified in this Section
17 40.
18 (g) Any person who engages in the retail sale of tobacco
19 products without a license as required by this Section 40, or
20 after a license issued pursuant to this Section 40 has been
21 suspended is guilty of a business offense, for which a
22 mandatory $1,000 fine shall be imposed. A person convicted of
23 a second or subsequent violation of this Section 40 is guilty
24 of a Class B misdemeanor. No person shall be liable for more
25 than one violation per day.
26 (h) A license issued under this Section 40 is not
27 assignable and is valid only for the person in whose name it
28 is issued and for the place of business or vending machine
29 designated therein. No license shall be required and no fee
30 shall be specified for the retail sale of tobacco products
31 other than the license required and the fee specified under
32 this Section 40. License fees shall not be raised except by
33 act of the General Assembly.
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1 Section 45. Suspension, revocation, denial, and
2 nonrenewal of licenses.
3 (a) Upon finding that a licensee or an employee or agent
4 of the licensee has been determined by a court of competent
5 jurisdiction to have committed during the license term 3 or
6 more violations of this Act involving the same place of
7 business or vending machine for which the license was issued,
8 the Enforcement Agency shall notify the licensee in writing,
9 served personally or by mail, that any subsequent violation
10 thereof during the license term may result in an
11 administrative action to suspend the license for a period not
12 to exceed 30 days.
13 (b) Upon finding that a further violation has occurred
14 during the license term notwithstanding the notice provided
15 under subsection (a) of this Section 45 involving the same
16 place of business or vending machine for which the license
17 was issued, the Enforcement Agency may initiate an
18 administrative action to suspend the license. No license
19 shall be suspended except after a hearing by the Enforcement
20 Agency with reasonable notice to the licensee served by
21 registered or certified mail with return receipt requested at
22 least 5 days prior to the hearing at the last place of
23 business of the licensee and after an opportunity to appear
24 and defend. Such notice shall specify the time and place of
25 the hearing and the nature of the charges. The findings of
26 the Enforcement Agency shall be predicated upon competent
27 evidence.
28 (c) The Enforcement Agency may initiate an
29 administrative action to revoke a license that previously has
30 been suspended under subsection (b) of this Section 45 if,
31 during the license term, a further violation of this Act is
32 committed involving the same place of business or vending
33 machine for which the license was issued. No license shall
34 be suspended except after a hearing by the Enforcement Agency
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1 with reasonable notice to the licensee served by registered
2 or certified mail with return receipt requested at least 5
3 days prior to the hearings at the last place of business of
4 the licensee and after an opportunity to appear and defend.
5 Such notice shall specify the time and place of the hearing
6 and the nature of the charges. The findings of the
7 Enforcement Agency shall be predicated upon competent
8 evidence.
9 (d) A copy of the order or decision of the Enforcement
10 Agency, in any proceeding before it, certified under the seal
11 of the Enforcement Agency, shall be served upon each party of
12 record to the proceeding before the Enforcement Agency and
13 service upon any attorney of record for any such party shall
14 be deemed service upon such party. Each party appearing
15 before the Enforcement Agency shall enter his or her
16 appearance and indicate to the Enforcement Agency his or her
17 address for the service of a copy of any order, decision, or
18 notice and the mailing of a copy of an order or decision of
19 the Enforcement Agency or of a notice by the Enforcement
20 Agency in the proceeding to that party at his or her address
21 shall be deemed service upon that party. Within 20 days
22 after the service of an order or decision of the Enforcement
23 Agency upon a party to the proceeding, that party may apply
24 for a rehearing with respect to any matter determined by the
25 Enforcement Agency. If a rehearing is granted, the Agency
26 shall hold the rehearing and render a decision within 20 days
27 after the filing of the application for rehearing with the
28 secretary of the Enforcement Agency. The time for holding
29 the rehearing and tendering a decision may be extended for a
30 period not to exceed 30 days, for good cause shown, and by
31 notice in writing to all parties of interest. No action for
32 the judicial review of any decision of the Enforcement Agency
33 shall be allowed unless the party commencing the action has
34 first filed an application for a rehearing and the
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1 Enforcement Agency has acted upon that application. Only one
2 rehearing may be granted by the Enforcement Agency on
3 application of any one party.
4 (e) The Enforcement Agency may refuse to grant or renew
5 a license under this Act to any person determined by a court
6 of competent jurisdiction to have committed more than 3
7 violations of this Act during the year preceding the date on
8 which the license or renewal application was filed with the
9 Enforcement Agency. Before refusing to grant or renew a
10 license under this Act, the Enforcement Agency shall give the
11 applicant an opportunity, at least 14 days after written
12 notice is served, personally or by mail upon the applicant,
13 to show why the denial or nonrenewal would be unwarranted or
14 unjust.
15 (f) A person whose license has been suspended or revoked
16 pursuant to this Act shall pay the Enforcement Agency a fee
17 of $50 for the renewal or reissuance of the license. For
18 purposes of determining the liability of a person controlling
19 franchises or business operations in multiple locations for a
20 second or subsequent violation of this Act, each individual
21 franchise or business location shall be deemed a separate
22 entity.
23 (g) All final administrative decisions of the
24 Enforcement Agency under this Act shall be subject to
25 judicial review pursuant to the provisions of the
26 Administrative Review Law and the rules adopted pursuant to
27 the Administrative Review Law. The term "administrative
28 decision" has the same meaning as in Section 3-101 of the
29 Code of Civil Procedure.
30 Section 50. Unannounced inspections; reporting and
31 compliance.
32 (a) The Enforcement Agency shall enforce this Act in a
33 manner that can reasonably be expected to reduce the extent
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1 to which tobacco products are sold or distributed to persons
2 under 18 years of age, and shall annually conduct random,
3 unannounced inspections at locations where tobacco products
4 are sold or distributed, including vending machines, to
5 ensure compliance with this Act. The Enforcement Agency may
6 enter into contracts with the following law enforcement
7 agencies, if those law enforcement agencies demonstrate a
8 pattern of enforcement of the attempt to purchase and
9 possession violation under Section 15, under which the
10 agencies will be authorized to conduct inspections, and
11 engage in enforcement actions, as provided in this Section:
12 (1) the Illinois State Police;
13 (2) the sheriff of a county; or
14 (3) the head of the police department or police
15 force of any county, city, town, or village.
16 (b) The program of inspections authorized under this
17 Section 50 shall cover a range of licensed establishments
18 that reflects the distribution of the population under 18
19 years of age throughout the State where persons under 18
20 years of age are most likely to attempt to purchase tobacco
21 products. Licensed establishments shall not be selected for
22 inspection on the basis of evidence concerning prior
23 violations. If the Enforcement Agency conducts an inspection
24 at an establishment that does not result in evidence of a
25 violation, the Enforcement Agency shall not conduct another
26 inspection at the same establishment for a period of not less
27 than one year.
28 (c) For purposes of inspections and enforcement actions
29 undertaken pursuant to this Section 50, persons under 18
30 years of age may be enlisted to attempt to purchase or to
31 purchase tobacco products, provided that such persons shall
32 have the prior written consent of a parent or legal guardian,
33 and provided further that such persons shall be directly
34 supervised during the conduct of each inspection or
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1 enforcement action by an adult employee of the Enforcement
2 Agency or by the Illinois State Police, the sheriff of a
3 county, county police department, the head of the police
4 department or police force of any county, city, town, or
5 village, or any officer or employee thereof. No person under
6 18 years of age may misrepresent his or her age for the
7 purpose of purchasing or attempting to purchase tobacco
8 products. If questioned about his or her age during an
9 attempt to purchase or receive tobacco products, a person
10 under 18 years of age shall state his or her true age and
11 that he or she is under 18 years of age. A person under 18
12 years of age shall not be used in any inspection or
13 enforcement action at an establishment in which that person
14 is a regular customer. A photograph or video recording of
15 any person under 18 years of age assisting in an inspection
16 or enforcement action shall be taken prior to and after each
17 inspection or enforcement action, or shift of inspections or
18 enforcement actions, and retained for 2 years. The
19 appearance of a person under 18 years of age participating in
20 an inspection or enforcement action shall not be altered.
21 (d) The owner or an authorized employee of an
22 establishment where an inspection or enforcement action under
23 this Section 50 takes place shall be informed of the results
24 of the inspection or enforcement action not more than 72
25 hours after the inspection or enforcement action is
26 completed. The employee of the department or law enforcement
27 officer who directly supervised an inspection conducted
28 pursuant to this Section shall prepare a written report
29 within 7 days after completion. A copy of that report shall
30 be delivered to the owner of the establishment where the
31 inspection took place within 14 days of completion. The
32 report shall include the name and position of the person who
33 directly supervised the inspection, the age and date of birth
34 of the person under 18 years of age who assisted with the
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1 inspection, the date and time of the inspection, a reasonably
2 detailed description of the inspection, and the result of the
3 inspection. Any use of persons under 18 years of age other
4 than that permitted by this Section 50 to measure compliance
5 with or to enforce Section 10 or any other prohibitions of
6 like or similar import shall be unlawful and the person or
7 persons responsible for such use shall be subject to the
8 penalties prescribed for violation of Section 10.
9 (e) The Enforcement Agency shall compile the results of
10 inspections performed pursuant to this Section 50, and shall
11 prepare an annual report reflecting such results for
12 submission with the State's application for federal block
13 grants for substance abuse prevention and treatment in
14 accordance with the requirements of Section 1926 of the
15 federal Public Health Services Act (42 U.S.C. 300x-26).
16 (f) Failure to comply with any requirement of
17 subsections (a) through (d) of this Section 50 during an
18 inspection or enforcement action shall be an affirmative
19 defense to any action for violation of Section 10 brought as
20 a result of such inspection or enforcement action.
21 Information gathered during an inspection or enforcement
22 action that was conducted in a manner not in accordance with
23 this Section shall not be admitted as evidence in any action
24 and shall not be used in any report, filing, application, or
25 publication prepared by the Enforcement Agency or any other
26 agency of the State, including any report under Section 1926
27 of the federal Public Health Services Act (42 U.S.C.
28 300x-26).
29 (g) The Enforcement Agency shall negotiate annually with
30 the United States Secretary of Health and Human Services
31 interim performance targets and the time frame for achieving
32 the ultimate performance objective as provided in 45 C.F.R.
33 96.130. The Enforcement Agency shall not agree to any
34 interim performance target or any such time frame that is not
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1 realistic and attainable, and shall strive consistent with
2 this Section 50 and with Section 10 to ensure continued
3 federal funding for the State's substance abuse programs.
4 (h) To support inspections and enforcement actions
5 authorized under this Section, the Enforcement Agency may
6 expend funds from the following to the full extent permitted
7 by federal law:
8 (1) The primary prevention set-aside portion of
9 federal block grants for substance abuse prevention and
10 treatment (45 C.F.R. 96.124(b)(1));
11 (2) The Centers for Disease Control's Preventive
12 Health and Health Services Block Grant (42 U.S.C. par.
13 300-w et seq.); and
14 (3) Any other available source of federal funds.
15 Section 55. Offset for enforcement and inspection.
16 License fees and penalties collected pursuant to this Act
17 shall be distributed to the Enforcement Agency for the
18 administration and enforcement of this Act.
19 Section 60. Preemption.
20 (a) Except as provided in subsection (b) of this
21 Section, a home rule or non-home rule unit of local
22 government in this State shall not have the power or
23 authority to enact or enforce any laws, ordinances, rules, or
24 regulations concerning the sale, distribution, display, use,
25 advertising or promotion of tobacco products. Except as
26 provided in subsection (b) of this Section, the power and
27 authority to regulate the sale, distribution, display, use
28 advertising, and promotion of tobacco products is an
29 exclusive State power or function. This Act is a denial and
30 limitation of home rule powers and functions under subsection
31 (h) of Section 6 of Article VII of the Illinois Constitution.
32 (b) Subsection (a) shall not preclude a home rule or
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1 non-home rule unit from continuing to require a license or
2 permit as a condition of selling tobacco products pursuant to
3 an ordinance enacted prior to the effective date of this Act
4 for the sole purpose of collecting the license or permit fee;
5 provided, that the fee imposed to obtain such permit or
6 license may not exceed the fee in effect on the effective
7 date of this Act.
8 Section 150. The Cigarette Tax Act is amended by
9 changing Section 4 as follows:
10 (35 ILCS 130/4) (from Ch. 120, par. 453.4)
11 Sec. 4. No person may engage in business as a distributor
12 of cigarettes in this State within the meaning of the first 2
13 definitions of distributor in Section 1 of this Act without
14 first having obtained a license therefor from the Department.
15 Application for license shall be made to the Department in
16 form as furnished and prescribed by the Department. Each
17 applicant for a license under this Section shall furnish to
18 the Department on the form signed and verified by the
19 applicant the following information:
20 (a) The name and address of the applicant;
21 (b) The address of the location at which the applicant
22 proposes to engage in business as a distributor of cigarettes
23 in this State;
24 (c) Such other additional information as the Department
25 may lawfully require by its rules and regulations.
26 The annual license fee payable to the Department for each
27 distributor's license shall be $250. The purpose of such
28 annual license fee is to defray the cost, to the Department,
29 of coding, serializing or coding and serializing, cigarette
30 tax stamps, and to assist the Enforcement Agency defined in
31 Section 5(2) of the Illinois Underage Purchase, Possession,
32 and Sales Prevention Act of 1999 with costs associated with
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1 the enforcement of that Act. Each applicant for license shall
2 pay such fee to the Department at the time of submitting his
3 application for license to the Department. Such fee shall be
4 divided equally between the Department and the Enforcement
5 Agency defined in Section 5(2) of the Illinois Underage
6 Purchase, Possession, and Sales Prevention Act of 1999. The
7 portion allocable to the Enforcement Agency shall be
8 transferred by the Department to the Enforcement Agency.
9 Every applicant who is required to procure a
10 distributor's license shall file with his application a joint
11 and several bond. Such bond shall be executed to the
12 Department of Revenue, with good and sufficient surety or
13 sureties residing or licensed to do business within the State
14 of Illinois, in the amount of $2,500, conditioned upon the
15 true and faithful compliance by the licensee with all of the
16 provisions of this Act. Such bond, or a reissue thereof, or a
17 substitute therefor, shall be kept in effect during the
18 entire period covered by the license. A separate application
19 for license shall be made, a separate annual license fee
20 paid, and a separate bond filed, for each place of business
21 at which a person who is required to procure a distributor's
22 license under this Section proposes to engage in business as
23 a distributor in Illinois under this Act.
24 The following are ineligible to receive a distributor's
25 license under this Act:
26 (1) a person who is not of good character and reputation
27 in the community in which he resides;
28 (2) a person who has been convicted of a felony under
29 any Federal or State law, if the Department, after
30 investigation and a hearing, if requested by the applicant,
31 determines that such person has not been sufficiently
32 rehabilitated to warrant the public trust;
33 (3) a corporation, if any officer, manager or director
34 thereof, or any stockholder or stockholders owning in the
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1 aggregate more than 5% of the stock of such corporation,
2 would not be eligible to receive a license under this Act for
3 any reason;
4 (4) a person previously licensed as a distributor or
5 wholesaler who has been convicted of a second offense under
6 Section 35 of the Illinois Underage Purchase, Possession, and
7 Sales Prevention Act of 1999.
8 The Department, upon receipt of an application, license
9 fee and bond in proper form, from a person who is eligible to
10 receive a distributor's license under this Act, shall issue
11 to such applicant a license in form as prescribed by the
12 Department, which license shall permit the applicant to which
13 it is issued to engage in business as a distributor at the
14 place shown in his application. All licenses issued by the
15 Department under this Act shall be valid for not to exceed
16 one year after issuance unless sooner revoked, canceled or
17 suspended as provided in this Act. No license issued under
18 this Act is transferable or assignable. Such license shall be
19 conspicuously displayed in the place of business conducted by
20 the licensee in Illinois under such license.
21 (Source: P.A. 78-255.)
22 Section 160. The Cigarette Use Tax Act is amended by
23 changing Section 4 as follows:
24 (35 ILCS 135/4) (from Ch. 120, par. 453.34)
25 Sec. 4. A distributor maintaining a place of business in
26 this State, if required to procure a license or allowed to
27 obtain a permit as a distributor under the Cigarette Tax Act,
28 need not obtain an additional license or permit under this
29 Act, but shall be deemed to be sufficiently licensed or
30 registered by virtue of his being licensed or registered
31 under the Cigarette Tax Act.
32 Every distributor maintaining a place of business in this
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1 State, if not required to procure a license or allowed to
2 obtain a permit as a distributor under the Cigarette Tax Act,
3 shall make a verified application to the Department (upon a
4 form prescribed and furnished by the Department) for a
5 license to act as a distributor under this Act. In completing
6 such application, the applicant shall furnish such
7 information as the Department may reasonably require.
8 The annual license fee payable to the Department for each
9 distributor's license shall be $250. The purpose of such
10 annual license fee is to defray the cost, to the Department,
11 of coding, serializing, or coding and serializing cigarette
12 tax stamps, and to assist the Enforcement Agency defined in
13 Section 5(2) of the Illinois Underage Purchase, Possession,
14 and Sales Prevention Act of 1999 with costs associated with
15 the enforcement of that Act. The applicant for license shall
16 pay such fee to the Department at the time of submitting the
17 application for license to the Department. Such fee shall be
18 divided equally between the Department and the Enforcement
19 Agency defined in Section 5(2) of the Illinois Underage
20 Purchase, Possession, and Sales Prevention Act of 1999. The
21 portion allocable to the Enforcement Agency shall be
22 transferred by the Department to the Enforcement Agency.
23 Such applicant shall file, with his application, a joint
24 and several bond. Such bond shall be executed to the
25 Department of Revenue, with good and sufficient surety or
26 sureties residing or licensed to do business within the State
27 of Illinois, in the amount of $2,500, conditioned upon the
28 true and faithful compliance by the licensee with all of the
29 provisions of this Act. Such bond, or a reissue thereof, or a
30 substitute therefor, shall be kept in effect during the
31 entire period covered by the license. A separate application
32 for license shall be made, a separate annual license fee
33 paid, and a separate bond filed, for each place of business
34 at or from which the applicant proposes to act as a
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1 distributor under this Act and for which the applicant is not
2 required to procure a license or allowed to obtain a permit
3 as a distributor under the Cigarette Tax Act.
4 The following are ineligible to receive a distributor's
5 license under this Act:
6 (1) a person who is not of good character and reputation
7 in the community in which he resides;
8 (2) a person who has been convicted of a felony under
9 any Federal or State law, if the Department, after
10 investigation and a hearing, if requested by the applicant,
11 determines that such person has not been sufficiently
12 rehabilitated to warrant the public trust;
13 (3) a corporation, if any officer, manager or director
14 thereof, or any stockholder or stockholders owning in the
15 aggregate more than 5% of the stock of such corporation,
16 would not be eligible to receive a license hereunder for any
17 reason;
18 (4) a person previously licensed as a distributor or
19 wholesaler who has been convicted of a second offense under
20 Section 35 of the Illinois Underage Purchase, Possession, and
21 Sales Prevention Act of 1999.
22 Upon approval of such application and bond and payment of
23 the required annual license fee, the Department shall issue a
24 license to the applicant. Such license shall permit the
25 applicant to engage in business as a distributor at or from
26 the place shown in his application. All licenses issued by
27 the Department under this Act shall be valid for not to
28 exceed one year after issuance unless sooner revoked,
29 canceled or suspended as in this Act provided. No license
30 issued under this Act is transferable or assignable. Such
31 license shall be conspicuously displayed at the place of
32 business for which it is issued.
33 (Source: P.A. 78-255.)
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1 Section 180. The Liquor Control Act of 1934 is amended
2 by changing Section 3-12 as follows:
3 (235 ILCS 5/3-12) (from Ch. 43, par. 108)
4 Sec. 3-12. (a) The State commission shall have the
5 following powers, functions and duties:
6 (1) To receive applications and to issue licenses to
7 manufacturers, foreign importers, importing distributors,
8 distributors, non-resident dealers, on premise consumption
9 retailers, off premise sale retailers, special event retailer
10 licensees, special use permit licenses, auction liquor
11 licenses, brew pubs, caterer retailers, non-beverage users,
12 railroads, including owners and lessees of sleeping, dining
13 and cafe cars, airplanes, boats, brokers, and wine maker's
14 retail licensees in accordance with the provisions of this
15 Act, and to suspend or revoke such licenses upon the State
16 commission's determination, upon notice after hearing, that a
17 licensee has violated any provision of this Act or any rule
18 or regulation issued pursuant thereto and in effect for 30
19 days prior to such violation.
20 In lieu of suspending or revoking a license, the
21 commission may impose a fine, upon the State commission's
22 determination and notice after hearing, that a licensee has
23 violated any provision of this Act or any rule or regulation
24 issued pursuant thereto and in effect for 30 days prior to
25 such violation. The fine imposed under this paragraph may
26 not exceed $500 for each violation. Each day that the
27 activity, which gave rise to the original fine, continues is
28 a separate violation. The maximum fine that may be levied
29 against any licensee, for the period of the license, shall
30 not exceed $20,000. The maximum penalty that may be imposed
31 on a licensee for selling a bottle of alcoholic liquor with a
32 foreign object in it or serving from a bottle of alcoholic
33 liquor with a foreign object in it shall be the destruction
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1 of that bottle of alcoholic liquor for the first 10 bottles
2 so sold or served from by the licensee. For the eleventh
3 bottle of alcoholic liquor and for each third bottle
4 thereafter sold or served from by the licensee with a foreign
5 object in it, the maximum penalty that may be imposed on the
6 licensee is the destruction of the bottle of alcoholic liquor
7 and a fine of up to $50.
8 (2) To adopt such rules and regulations consistent with
9 the provisions of this Act which shall be necessary to carry
10 on its functions and duties to the end that the health,
11 safety and welfare of the People of the State of Illinois
12 shall be protected and temperance in the consumption of
13 alcoholic liquors shall be fostered and promoted and to
14 distribute copies of such rules and regulations to all
15 licensees affected thereby.
16 (3) To call upon other administrative departments of the
17 State, county and municipal governments, county and city
18 police departments and upon prosecuting officers for such
19 information and assistance as it deems necessary in the
20 performance of its duties.
21 (4) To recommend to local commissioners rules and
22 regulations, not inconsistent with the law, for the
23 distribution and sale of alcoholic liquors throughout the
24 State.
25 (5) To inspect, or cause to be inspected, any premises
26 in this State where alcoholic liquors are manufactured,
27 distributed, warehoused, or sold.
28 (5.1) Upon receipt of a complaint or upon having
29 knowledge that any person is engaged in business as a
30 manufacturer, importing distributor, distributor, or retailer
31 without a license or valid license, to notify the local
32 liquor authority, file a complaint with the State's
33 Attorney's Office of the county where the incident occurred,
34 or initiate an investigation with the appropriate law
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1 enforcement officials.
2 (5.2) To issue a cease and desist notice to persons
3 shipping alcoholic liquor into this State from a point
4 outside of this State if the shipment is in violation of this
5 Act.
6 (6) To hear and determine appeals from orders of a local
7 commission in accordance with the provisions of this Act, as
8 hereinafter set forth. Hearings under this subsection shall
9 be held in Springfield or Chicago, at whichever location is
10 the more convenient for the majority of persons who are
11 parties to the hearing.
12 (7) The commission shall establish uniform systems of
13 accounts to be kept by all retail licensees having more than
14 4 employees, and for this purpose the commission may classify
15 all retail licensees having more than 4 employees and
16 establish a uniform system of accounts for each class and
17 prescribe the manner in which such accounts shall be kept.
18 The commission may also prescribe the forms of accounts to be
19 kept by all retail licensees having more than 4 employees,
20 including but not limited to accounts of earnings and
21 expenses and any distribution, payment, or other distribution
22 of earnings or assets, and any other forms, records and
23 memoranda which in the judgment of the commission may be
24 necessary or appropriate to carry out any of the provisions
25 of this Act, including but not limited to such forms, records
26 and memoranda as will readily and accurately disclose at all
27 times the beneficial ownership of such retail licensed
28 business. The accounts, forms, records and memoranda shall
29 be available at all reasonable times for inspection by
30 authorized representatives of the State commission or by any
31 local liquor control commissioner or his or her authorized
32 representative. The commission, may, from time to time,
33 alter, amend or repeal, in whole or in part, any uniform
34 system of accounts, or the form and manner of keeping
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1 accounts.
2 (8) In the conduct of any hearing authorized to be held
3 by the commission, to examine, or cause to be examined, under
4 oath, any licensee, and to examine or cause to be examined
5 the books and records of such licensee; to hear testimony and
6 take proof material for its information in the discharge of
7 its duties hereunder; to administer or cause to be
8 administered oaths; and for any such purpose to issue
9 subpoena or subpoenas to require the attendance of witnesses
10 and the production of books, which shall be effective in any
11 part of this State.
12 Any Circuit Court may by order duly entered, require the
13 attendance of witnesses and the production of relevant books
14 subpoenaed by the State commission and the court may compel
15 obedience to its order by proceedings for contempt.
16 (9) To investigate the administration of laws in
17 relation to alcoholic liquors in this and other states and
18 any foreign countries, and to recommend from time to time to
19 the Governor and through him or her to the legislature of
20 this State, such amendments to this Act, if any, as it may
21 think desirable and as will serve to further the general
22 broad purposes contained in Section 1-2 hereof.
23 (10) To adopt such rules and regulations consistent with
24 the provisions of this Act which shall be necessary for the
25 control, sale or disposition of alcoholic liquor damaged as a
26 result of an accident, wreck, flood, fire or other similar
27 occurrence.
28 (11) To develop industry educational programs related to
29 responsible serving and selling, particularly in the areas of
30 overserving consumers and illegal underage purchasing and
31 consumption of alcoholic beverages.
32 (12) To develop and maintain a repository of license and
33 regulatory information.
34 (13) (Blank) On or before January 15, 1994, the
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1 Commission shall issue a written report to the Governor and
2 General Assembly that is to be based on a comprehensive study
3 of the impact on and implications for the State of Illinois
4 of Section 1926 of the Federal ADAMHA Reorganization Act of
5 1992 (Public Law 102-321). This study shall address the
6 extent to which Illinois currently complies with the
7 provisions of P.L. 102-321 and the rules promulgated pursuant
8 thereto.
9 As part of its report, the Commission shall provide the
10 following essential information:
11 (i) the number of retail distributors of tobacco
12 products, by type and geographic area, in the State;
13 (ii) the number of reported citations and
14 successful convictions, categorized by type and location
15 of retail distributor, for violation of the Sale of
16 Tobacco to Minors Act and the Smokeless Tobacco
17 Limitation Act;
18 (iii) the extent and nature of organized
19 educational and governmental activities that are intended
20 to promote, encourage or otherwise secure compliance with
21 any Illinois laws that prohibit the sale or distribution
22 of tobacco products to minors; and
23 (iv) the level of access and availability of
24 tobacco products to individuals under the age of 18.
25 To obtain the data necessary to comply with the
26 provisions of P.L. 102-321 and the requirements of this
27 report, the Commission shall conduct random, unannounced
28 inspections of a geographically and scientifically
29 representative sample of the State's retail tobacco
30 distributors.
31 The Commission shall consult with the Department of
32 Public Health, the Department of Human Services, the Illinois
33 State Police and any other executive branch agency, and
34 private organizations that may have information relevant to
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1 this report.
2 The Commission may contract with the Food and Drug
3 Administration of the U.S. Department of Health and Human
4 Services to conduct unannounced investigations of Illinois
5 tobacco vendors to determine compliance with federal laws
6 relating to the illegal sale of cigarettes and smokeless
7 tobacco products to persons under the age of 18.
8 (14) The Commission shall receive and issue licenses to
9 persons engaged in the retail sales of tobacco products over
10 the counter or through any vending machine, as specified in
11 Section 40 of the Illinois Underage Purchase, Possession, and
12 Sales Prevention Act of 1999. The Commission shall enforce
13 the Illinois Underage Purchase Possession, and Sales
14 Prevention Act of 1999, conduct the inspections described in
15 Section 45 of that Act, and submit the report required by
16 Section 1926 of the federal Public Health Service Act (42
17 U.S.C. 300x-26). The Commission shall not promulgate any
18 rules with respect to the Illinois Underage Purchase,
19 Possession, and Sales Prevention Act of 1999.
20 Notwithstanding any other provision of this Act, and except
21 as specifically provided in Sections 40 and 45 of the
22 Illinois Underage Purchase, Possession, and Sales Prevention
23 Act of 1999, the Commission shall not exercise any authority
24 with respect to the licensing of sellers of tobacco products,
25 the sale or distribution of such products, or the inspection
26 of establishments that sell such products at retail.
27 (b) On or before April 30, 1999, the Commission shall
28 present a written report to the Governor and the General
29 Assembly that shall be based on a study of the impact of this
30 amendatory Act of 1998 on the business of soliciting,
31 selling, and shipping alcoholic liquor from outside of this
32 State directly to residents of this State.
33 As part of its report, the Commission shall provide the
34 following information:
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1 (i) the amount of State excise and sales tax
2 revenues generated as a result of this amendatory Act of
3 1998;
4 (ii) the amount of licensing fees received as a
5 result of this amendatory Act of 1998;
6 (iii) the number of reported violations, the number
7 of cease and desist notices issued by the Commission, the
8 number of notices of violations issued to the Department
9 of Revenue, and the number of notices and complaints of
10 violations to law enforcement officials.
11 (Source: P.A. 89-507, eff. 7-1-97; 90-9, eff. 7-1-97; 90-432,
12 eff. 1-1-98; 90-655, eff. 7-30-98; 90-739, eff. 8-13-98.)
13 (720 ILCS 675/Act rep.)
14 Section 300. The Sale of Tobacco to Minors Act is
15 repealed.
16 (720 ILCS 680/Act rep.)
17 Section 400. The Smokeless Tobacco Limitation Act is
18 repealed.
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.