Public Act 093-0930
 		





SB3083 Enrolled
LRB093 20849 SJM 46782 b






    AN ACT concerning finance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Tobacco Products Manufacturers' Escrow 
Enforcement Act of 2003 is amended  by changing Sections 15 and 
30 as follows:
 



    (30 ILCS 167/15)


    Sec. 15. Certifications; directory; tax stamps. 

    (a) Every tobacco product manufacturer whose cigarettes 
are sold in this
State whether
directly or through a 
distributor, retailer, or similar intermediary or

intermediaries shall execute and
deliver on a form prescribed 
by the Attorney General a certification to the
Attorney 
General, no
later than the thirtieth day of April each year, 
certifying under penalty of
perjury that, as of the date
of the 
certification, the tobacco product manufacturer either: (i) is 
a
participating manufacturer and has generally performed its 
financial
obligations under the Master Settlement Agreement; 
or
(ii) is in full compliance with the Escrow Act, including 
all quarterly
installment
payments.


        (1) A participating manufacturer shall include in its 
    certification a list
of its brand
families. The 
    participating manufacturer shall update the list 30 days 
    prior to
any addition to or
modification of its brand 
    families by executing and delivering a supplemental

    certification to the
Attorney General.


        (2) A non-participating manufacturer shall include in 
    its certification a
complete
list of all of its brand 
    families: (i) separately listing brand families of

    cigarettes and the number of
units sold for each brand 
    family that were sold in the State during the
preceding 
    calendar year; (ii)
listing all of its brand families that 
    have been sold in the State at any time
during the current

    calendar year; (iii) indicating by an asterisk, any brand 
    family sold in the
State during the preceding
calendar year 
    that is no longer being sold in the State as of the date of 
    the
certification; and (iv)
identifying by name and address 
    any other manufacturer of the brand families in
the 
    preceding
calendar year. The non-participating 
    manufacturer shall update the list 30 days
prior to any 
    addition
to or modification of its brand families by 
    executing and delivering a
supplemental certification to

    the Attorney General.


        (3) In the case of a non-participating manufacturer, 
    the certification
shall further certify:


            (A) that the non-participating manufacturer is 
        registered to do business
in
this State or has 
        appointed a resident agent for service of process and

        provided notice thereof as
required by item 4 of 
        subsection (a) of this Section;


            (B) that the non-participating manufacturer has 
        (i) established and
continues to maintain a qualified 
        escrow fund as that term is defined in
Section 10 of 
        the Escrow
Act, and (ii) executed a qualified escrow 
        agreement that has been reviewed and
approved by the

        Attorney General and that governs the qualified escrow 
        fund;


            (C) that the non-participating manufacturer is in 
        full compliance with
the Escrow Act and this Act, and 
        any regulations promulgated pursuant thereto;


            (D) the name, address and telephone number of the 
        financial institution
where the non-participating 
        manufacturer has established the qualified escrow
fund 
        required
pursuant to Section 15 of the Escrow Act and 
        all regulations promulgated
thereto;


            (E) the account number of the qualified escrow fund 
        and sub-account
number for this State;


            (F) the amount the non-participating manufacturer 
        placed in the fund
for cigarettes sold in the State 
        during the preceding calendar year, including
the 
        dates and amount
of each deposit, and such evidence or 
        verification as may be deemed necessary
by the Attorney 
        General to confirm the foregoing; and


            (G) the amounts of and dates of any withdrawal or 
        transfer of funds the
non-participating manufacturer 
        made at any time from the fund or from any other

        qualified escrow
fund into which it ever made escrow 
        payments pursuant to Section 15 of the
Escrow Act and 
        all regulations promulgated thereto.


        (4) A tobacco product manufacturer may not include a 
    brand family in its
certification unless: (i) in the case 
    of a participating manufacturer, the
participating 
    manufacturer
affirms that the brand family is to be deemed 
    to be its cigarettes for purposes
of calculating its

    payments under the master settlement agreement for the 
    relevant year, in the
volume and shares
determined pursuant 
    to the master settlement agreement; and (ii) in the case of

    a non-participating
manufacturer, the non-participating 
    manufacturer affirms that the brand family
is to be deemed 
    to
be its cigarettes for purposes of Section 15 of the 
    Escrow Act.


        Nothing in this Section shall be construed as limiting 
    or otherwise
affecting
the State's right
to maintain that a 
    brand family constitutes cigarettes of a different tobacco

    product manufacturer
for purposes of calculating payments 
    under the master settlement agreement or
for purposes of 
    Section 15 of the Escrow Act.


        (5) The tobacco product manufacturers shall maintain 
    all invoices and
documentation of sales and other 
    information relied upon for certification for
a period of 5 
    years,
unless otherwise required by law to maintain them 
    for a greater period of time.

    (b) Not later than 6 months after the effective date of 
this Act, the
Attorney General shall
develop and make available 
for public inspection, through publishing on its
website, a 
directory
listing all tobacco product manufacturers that have 
provided current and
accurate certifications
conforming to the 
requirements of subsection (a) of Section 15 and all brand

families that are listed in the certifications, except for the 
following:


        (1) The Attorney General shall not include or retain in 
    the directory the
name or
brand families of any 
    non-participating manufacturer that fails to provide the

    required certification
or whose certification the Attorney 
    General determines is not in compliance
with subsections 
    (a)(2)
or (a)(3) of Section 15, unless the Attorney General 
    has determined that the
violation has been
cured to the 
    satisfaction of the Attorney General.


        (2) Neither a tobacco product manufacturer nor brand 
    family shall be
included or
retained in the directory if 
    the Attorney General concludes that: (i) in the
case of a 
    non-participating
manufacturer all escrow payments 
    required pursuant to Section 15 of the Escrow
Act for any 
    period
for any brand family, whether or not listed by the 
    non-participating
manufacturer, have not been
fully paid 
    into a qualified escrow fund governed by a qualified escrow

    agreement that has been
approved by the Attorney General; 
    or (ii) all outstanding final judgments,
including 
    interest
thereon, for violations of Section 15 of the 
    Escrow Act have not been fully
satisfied for that brand 
    family and manufacturer.

    (c) The Attorney General shall update the directory as 
necessary in order
to correct
mistakes and to add or remove a 
tobacco product manufacturer or brand families
to keep the 
directory in conformity with the requirements of this Act.

    (d) Every distributor shall provide and update as necessary 
an electronic
mail
address to the Attorney General for the 
purpose of receiving any notifications
as may be required by 
this Act.

    (e) It shall be unlawful for any person: (i) to affix a 
stamp to a package
or other container of
cigarettes of a 
tobacco product manufacturer or brand family not included in

the directory; or (ii) to
sell, offer for sale, or possess for 
sale in this State, ; or (ii) import for personal
consumption in 
this State,
cigarettes of a tobacco product manufacturer or 
brand family not included in
the directory.

(Source: P.A. 93-446, eff. 1-1-04.)

 



    (30 ILCS 167/30)



    Sec. 30. Penalties and other remedies. 

    (a) In addition to or in lieu of any other civil or 
criminal remedy provided
by law, upon a
determination that a 
distributor has violated subsection (e)
(c) of Section 15 or

any regulation adopted
pursuant thereto, the Director may 
revoke or suspend the license of any
stamping agent in the

manner provided by Section 6 of the Cigarette Tax Act, Section 
6 of the
Cigarette Use Tax Act, or
Section 10-25 of the Tobacco 
Products Tax Act of 1995, as appropriate. Each
stamp affixed 
and
each offer to sell cigarettes in violation of subsection 
(e)
(c) of Section 15
shall constitute a separate
violation. 
For each violation, the Director may also impose a civil

penalty in an amount not
to exceed the greater of 500% of the 
retail value of the cigarettes sold or
$5,000 upon a

determination of violation of subsection (e)
(c) of Section 15 
or any regulations
adopted pursuant thereto.

    (b) Any cigarettes that have been sold, offered for sale, 
or possessed for
sale in this State,
or imported for personal 
consumption in this State in violation of subsection (e)
(c) of 
Section 15 shall
be subject to seizure and forfeiture as 
provided in Sections 18, 18a, and 20 of
the Cigarette Tax Act

and Sections 24, 25, 25a and 26 of the Cigarette Use Tax Act, 
and all
cigarettes so seized and forfeited shall be destroyed 
and not resold.

    (c) The Attorney General may seek an injunction to restrain 
a threatened or
actual violation
of subsection (e)
(c) of 
Section 15, subsection (a) of Section 25, or subsection
(d) of 
Section 25 by a
stamping agent and to compel the stamping agent 
to comply with such
subsections. In any action
brought pursuant 
to this Section, the State shall be entitled to recover the

costs of investigation,
costs of the action, and reasonable 
attorney fees.

    (d) It shall be unlawful for a person to: (i) sell or 
distribute cigarettes;
or (ii) acquire, hold,
own, possess, 
transport, import, or cause to be imported cigarettes that the

person knows or should
know are intended for distribution or 
sale in the State in violation of
subsection (e)
(c) of Section 
15. A
violation of this Section shall be a Class 2 felony.

    (e) A person who violates subsection (e)
(c) of Section 15 
engages in an unfair
and deceptive
trade practice in violation 
of the Uniform Deceptive Trade Practices Act.

(Source: P.A. 93-446, eff. 1-1-04.)






Effective Date:  1/1/2005