SB0109 EnrolledLRB097 00079 HLH 40087 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cigarette Tax Act is amended by changing
5Sections 1, 2, 4d, 7, 8, 9, 10, and 23 and by adding Sections
64f, 9f, and 11b as follows:
 
7    (35 ILCS 130/1)  (from Ch. 120, par. 453.1)
8    Sec. 1. For the purposes of this Act:
9    "Brand Style" means a variety of cigarettes distinguished
10by the tobacco used, tar and nicotine content, flavoring used,
11size of the cigarette, filtration on the cigarette or
12packaging.
13    "Cigarette", means any roll for smoking made wholly or in
14part of tobacco irrespective of size or shape and whether or
15not such tobacco is flavored, adulterated or mixed with any
16other ingredient, and the wrapper or cover of which is made of
17paper or any other substance or material except tobacco.
18    "Contraband cigarettes" means:
19        (a) cigarettes that do not bear a required tax stamp
20    under this Act;
21        (b) cigarettes for which any required federal taxes
22    have not been paid;
23        (c) cigarettes that bear a counterfeit tax stamp;

 

 

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1        (d) cigarettes that are manufactured, fabricated,
2    assembled, processed, packaged, or labeled by any person
3    other than (i) the owner of the trademark rights in the
4    cigarette brand or (ii) a person that is directly or
5    indirectly authorized by such owner;
6        (e) cigarettes imported into the United States, or
7    otherwise distributed, in violation of the federal
8    Imported Cigarette Compliance Act of 2000 (Title IV of
9    Public Law 106-476);
10        (f) cigarettes that have false manufacturing labels;
11        (g) cigarettes identified in Section 3-10(a)(1) of
12    this Act; or
13        (h) cigarettes that are improperly tax stamped,
14    including cigarettes that bear a tax stamp of another state
15    or taxing jurisdiction.
16    "Person" means any natural individual, firm, partnership,
17association, joint stock company, joint adventure, public or
18private corporation, however formed, limited liability
19company, or a receiver, executor, administrator, trustee,
20guardian or other representative appointed by order of any
21court.
22    "Prior Continuous Compliance Taxpayer" means any person
23who is licensed under this Act and who, having been a licensee
24for a continuous period of 5 years, is determined by the
25Department not to have been either delinquent or deficient in
26the payment of tax liability during that period or otherwise in

 

 

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1violation of this Act. Also, any taxpayer who has, as verified
2by the Department, continuously complied with the condition of
3his bond or other security under provisions of this Act for a
4period of 5 consecutive years shall be considered to be a
5"Prior continuous compliance taxpayer". In calculating the
6consecutive period of time described herein for qualification
7as a "prior continuous compliance taxpayer", a consecutive
8period of time of qualifying compliance immediately prior to
9the effective date of this amendatory Act of 1987 shall be
10credited to any licensee who became licensed on or before the
11effective date of this amendatory Act of 1987.
12    "Department" means the Department of Revenue.
13    "Sale" means any transfer, exchange or barter in any manner
14or by any means whatsoever for a consideration, and includes
15and means all sales made by any person.
16    "Original Package" means the individual packet, box or
17other container whatsoever used to contain and to convey
18cigarettes to the consumer.
19    "Distributor" means any and each of the following:
20    (1) Any person engaged in the business of selling
21cigarettes in this State who brings or causes to be brought
22into this State from without this State any original packages
23of cigarettes, on which original packages there is no
24authorized evidence underneath a sealed transparent wrapper
25showing that the tax liability imposed by this Act has been
26paid or assumed by the out-of-State seller of such cigarettes,

 

 

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1for sale or other disposition in the course of such business.
2    (2) Any person who makes, manufactures or fabricates
3cigarettes in this State for sale in this State, except a
4person who makes, manufactures or fabricates cigarettes as a
5part of a correctional industries program for sale to residents
6incarcerated in penal institutions or resident patients of a
7State-operated mental health facility.
8    (3) Any person who makes, manufactures or fabricates
9cigarettes outside this State, which cigarettes are placed in
10original packages contained in sealed transparent wrappers,
11for delivery or shipment into this State, and who elects to
12qualify and is accepted by the Department as a distributor
13under Section 4b of this Act.
14    "Place of business" shall mean and include any place where
15cigarettes are sold or where cigarettes are manufactured,
16stored or kept for the purpose of sale or consumption,
17including any vessel, vehicle, airplane, train or vending
18machine.
19    "Manufacturer representative" means a director, officer,
20or employee of a manufacturer who has obtained authority from
21the Department under Section 4f to maintain representatives in
22Illinois that provide or sell original packages of cigarettes
23made, manufactured, or fabricated by the manufacturer to
24retailers in compliance with Section 4f of this Act to promote
25cigarettes made, manufactured, or fabricated by the
26manufacturer.

 

 

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1    "Business" means any trade, occupation, activity or
2enterprise engaged in for the purpose of selling cigarettes in
3this State.
4    "Retailer" means any person who engages in the making of
5transfers of the ownership of, or title to, cigarettes to a
6purchaser for use or consumption and not for resale in any
7form, for a valuable consideration. "Retailer" does not include
8a person:
9        (1) who transfers to residents incarcerated in penal
10    institutions or resident patients of a State-operated
11    mental health facility ownership of cigarettes made,
12    manufactured, or fabricated as part of a correctional
13    industries program; or
14        (2) who transfers cigarettes to a not-for-profit
15    research institution that conducts tests concerning the
16    health effects of tobacco products and who does not offer
17    the cigarettes for resale.
18    "Retailer" shall be construed to include any person who
19engages in the making of transfers of the ownership of, or
20title to, cigarettes to a purchaser, for use or consumption by
21any other person to whom such purchaser may transfer the
22cigarettes without a valuable consideration, except a person
23who transfers to residents incarcerated in penal institutions
24or resident patients of a State-operated mental health facility
25ownership of cigarettes made, manufactured or fabricated as
26part of a correctional industries program.

 

 

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1    "Secondary distributor" means any person engaged in the
2business of selling cigarettes who purchases stamped original
3packages of cigarettes from a licensed distributor under this
4Act or the Cigarette Use Tax Act, sells 75% or more of those
5cigarettes to retailers for resale, and maintains an
6established business where a substantial stock of cigarettes is
7available to retailers for resale.
8    "Stamp" or "stamps" mean the indicia required to be affixed
9on a pack of cigarettes that evidence payment of the tax on
10cigarettes under Section 2 of this Act.
11    "Related party" means any person that is associated with
12any other person because he or she:
13        (a) is an officer or director of a business; or
14        (b) is legally recognized as a partner in business.
15(Source: P.A. 95-462, eff. 8-27-07; 95-1053, eff. 1-1-10;
1696-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
 
17    (35 ILCS 130/2)  (from Ch. 120, par. 453.2)
18    Sec. 2. Tax imposed; rate; collection, payment, and
19distribution; discount.
20    (a) A tax is imposed upon any person engaged in business as
21a retailer of cigarettes in this State at the rate of 5 1/2
22mills per cigarette sold, or otherwise disposed of in the
23course of such business in this State. In addition to any other
24tax imposed by this Act, a tax is imposed upon any person
25engaged in business as a retailer of cigarettes in this State

 

 

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1at a rate of 1/2 mill per cigarette sold or otherwise disposed
2of in the course of such business in this State on and after
3January 1, 1947, and shall be paid into the Metropolitan Fair
4and Exposition Authority Reconstruction Fund or as otherwise
5provided in Section 29. On and after December 1, 1985, in
6addition to any other tax imposed by this Act, a tax is imposed
7upon any person engaged in business as a retailer of cigarettes
8in this State at a rate of 4 mills per cigarette sold or
9otherwise disposed of in the course of such business in this
10State. Of the additional tax imposed by this amendatory Act of
111985, $9,000,000 of the moneys received by the Department of
12Revenue pursuant to this Act shall be paid each month into the
13Common School Fund. On and after the effective date of this
14amendatory Act of 1989, in addition to any other tax imposed by
15this Act, a tax is imposed upon any person engaged in business
16as a retailer of cigarettes at the rate of 5 mills per
17cigarette sold or otherwise disposed of in the course of such
18business in this State. On and after the effective date of this
19amendatory Act of 1993, in addition to any other tax imposed by
20this Act, a tax is imposed upon any person engaged in business
21as a retailer of cigarettes at the rate of 7 mills per
22cigarette sold or otherwise disposed of in the course of such
23business in this State. On and after December 15, 1997, in
24addition to any other tax imposed by this Act, a tax is imposed
25upon any person engaged in business as a retailer of cigarettes
26at the rate of 7 mills per cigarette sold or otherwise disposed

 

 

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1of in the course of such business of this State. All of the
2moneys received by the Department of Revenue pursuant to this
3Act and the Cigarette Use Tax Act from the additional taxes
4imposed by this amendatory Act of 1997, shall be paid each
5month into the Common School Fund. On and after July 1, 2002,
6in addition to any other tax imposed by this Act, a tax is
7imposed upon any person engaged in business as a retailer of
8cigarettes at the rate of 20.0 mills per cigarette sold or
9otherwise disposed of in the course of such business in this
10State. The payment of such taxes shall be evidenced by a stamp
11affixed to each original package of cigarettes, or an
12authorized substitute for such stamp imprinted on each original
13package of such cigarettes underneath the sealed transparent
14outside wrapper of such original package, as hereinafter
15provided. However, such taxes are not imposed upon any activity
16in such business in interstate commerce or otherwise, which
17activity may not under the Constitution and statutes of the
18United States be made the subject of taxation by this State.
19    Beginning on the effective date of this amendatory Act of
20the 92nd General Assembly and through June 30, 2006, all of the
21moneys received by the Department of Revenue pursuant to this
22Act and the Cigarette Use Tax Act, other than the moneys that
23are dedicated to the Common School Fund, shall be distributed
24each month as follows: first, there shall be paid into the
25General Revenue Fund an amount which, when added to the amount
26paid into the Common School Fund for that month, equals

 

 

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1$33,300,000, except that in the month of August of 2004, this
2amount shall equal $83,300,000; then, from the moneys
3remaining, if any amounts required to be paid into the General
4Revenue Fund in previous months remain unpaid, those amounts
5shall be paid into the General Revenue Fund; then, beginning on
6April 1, 2003, from the moneys remaining, $5,000,000 per month
7shall be paid into the School Infrastructure Fund; then, if any
8amounts required to be paid into the School Infrastructure Fund
9in previous months remain unpaid, those amounts shall be paid
10into the School Infrastructure Fund; then the moneys remaining,
11if any, shall be paid into the Long-Term Care Provider Fund. To
12the extent that more than $25,000,000 has been paid into the
13General Revenue Fund and Common School Fund per month for the
14period of July 1, 1993 through the effective date of this
15amendatory Act of 1994 from combined receipts of the Cigarette
16Tax Act and the Cigarette Use Tax Act, notwithstanding the
17distribution provided in this Section, the Department of
18Revenue is hereby directed to adjust the distribution provided
19in this Section to increase the next monthly payments to the
20Long Term Care Provider Fund by the amount paid to the General
21Revenue Fund and Common School Fund in excess of $25,000,000
22per month and to decrease the next monthly payments to the
23General Revenue Fund and Common School Fund by that same excess
24amount.
25    Beginning on July 1, 2006, all of the moneys received by
26the Department of Revenue pursuant to this Act and the

 

 

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1Cigarette Use Tax Act, other than the moneys that are dedicated
2to the Common School Fund, shall be distributed each month as
3follows: first, there shall be paid into the General Revenue
4Fund an amount that, when added to the amount paid into the
5Common School Fund for that month, equals $29,200,000; then,
6from the moneys remaining, if any amounts required to be paid
7into the General Revenue Fund in previous months remain unpaid,
8those amounts shall be paid into the General Revenue Fund; then
9from the moneys remaining, $5,000,000 per month shall be paid
10into the School Infrastructure Fund; then, if any amounts
11required to be paid into the School Infrastructure Fund in
12previous months remain unpaid, those amounts shall be paid into
13the School Infrastructure Fund; then the moneys remaining, if
14any, shall be paid into the Long-Term Care Provider Fund.
15    When any tax imposed herein terminates or has terminated,
16distributors who have bought stamps while such tax was in
17effect and who therefore paid such tax, but who can show, to
18the Department's satisfaction, that they sold the cigarettes to
19which they affixed such stamps after such tax had terminated
20and did not recover the tax or its equivalent from purchasers,
21shall be allowed by the Department to take credit for such
22absorbed tax against subsequent tax stamp purchases from the
23Department by such distributor.
24    The impact of the tax levied by this Act is imposed upon
25the retailer and shall be prepaid or pre-collected by the
26distributor for the purpose of convenience and facility only,

 

 

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1and the amount of the tax shall be added to the price of the
2cigarettes sold by such distributor. Collection of the tax
3shall be evidenced by a stamp or stamps affixed to each
4original package of cigarettes, as hereinafter provided.
5    Each distributor shall collect the tax from the retailer at
6or before the time of the sale, shall affix the stamps as
7hereinafter required, and shall remit the tax collected from
8retailers to the Department, as hereinafter provided. Any
9distributor who fails to properly collect and pay the tax
10imposed by this Act shall be liable for the tax. Any
11distributor having cigarettes to which stamps have been affixed
12in his possession for sale on the effective date of this
13amendatory Act of 1989 shall not be required to pay the
14additional tax imposed by this amendatory Act of 1989 on such
15stamped cigarettes. Any distributor having cigarettes to which
16stamps have been affixed in his or her possession for sale at
1712:01 a.m. on the effective date of this amendatory Act of
181993, is required to pay the additional tax imposed by this
19amendatory Act of 1993 on such stamped cigarettes. This
20payment, less the discount provided in subsection (b), shall be
21due when the distributor first makes a purchase of cigarette
22tax stamps after the effective date of this amendatory Act of
231993, or on the first due date of a return under this Act after
24the effective date of this amendatory Act of 1993, whichever
25occurs first. Any distributor having cigarettes to which stamps
26have been affixed in his possession for sale on December 15,

 

 

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11997 shall not be required to pay the additional tax imposed by
2this amendatory Act of 1997 on such stamped cigarettes.
3    Any distributor having cigarettes to which stamps have been
4affixed in his or her possession for sale on July 1, 2002 shall
5not be required to pay the additional tax imposed by this
6amendatory Act of the 92nd General Assembly on those stamped
7cigarettes.
8    Distributors making sales of cigarettes to secondary
9distributors shall add the amount of the tax to the price of
10the cigarettes sold by the distributors. Secondary
11distributors making sales of cigarettes to retailers shall
12include the amount of the tax in the price of the cigarettes
13sold to retailers. The amount of tax shall not be less than the
14amount of taxes imposed by the State and all local
15jurisdictions. The amount of local taxes shall be calculated
16based on the location of the retailer's place of business shown
17on the retailer's certificate of registration or
18sub-registration issued to the retailer pursuant to Section 2a
19of the Retailers' Occupation Tax Act. The original packages of
20cigarettes sold to the retailer shall bear all the required
21stamps, or other indicia, for the taxes included in the price
22of cigarettes.
23    The amount of the Cigarette Tax imposed by this Act shall
24be separately stated, apart from the price of the goods, by
25distributors, manufacturer representatives, secondary
26distributors, and retailers, in all bills and sales invoices.

 

 

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1    (b) The distributor shall be required to collect the taxes
2provided under paragraph (a) hereof, and, to cover the costs of
3such collection, shall be allowed a discount during any year
4commencing July 1st and ending the following June 30th in
5accordance with the schedule set out hereinbelow, which
6discount shall be allowed at the time of purchase of the stamps
7when purchase is required by this Act, or at the time when the
8tax is remitted to the Department without the purchase of
9stamps from the Department when that method of paying the tax
10is required or authorized by this Act. Prior to December 1,
111985, a discount equal to 1 2/3% of the amount of the tax up to
12and including the first $700,000 paid hereunder by such
13distributor to the Department during any such year; 1 1/3% of
14the next $700,000 of tax or any part thereof, paid hereunder by
15such distributor to the Department during any such year; 1% of
16the next $700,000 of tax, or any part thereof, paid hereunder
17by such distributor to the Department during any such year, and
182/3 of 1% of the amount of any additional tax paid hereunder by
19such distributor to the Department during any such year shall
20apply. On and after December 1, 1985, a discount equal to 1.75%
21of the amount of the tax payable under this Act up to and
22including the first $3,000,000 paid hereunder by such
23distributor to the Department during any such year and 1.5% of
24the amount of any additional tax paid hereunder by such
25distributor to the Department during any such year shall apply.
26    Two or more distributors that use a common means of

 

 

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1affixing revenue tax stamps or that are owned or controlled by
2the same interests shall be treated as a single distributor for
3the purpose of computing the discount.
4    (c) The taxes herein imposed are in addition to all other
5occupation or privilege taxes imposed by the State of Illinois,
6or by any political subdivision thereof, or by any municipal
7corporation.
8(Source: P.A. 96-1027, eff. 7-12-10.)
 
9    (35 ILCS 130/4d)
10    Sec. 4d. Sales of cigarettes to and by retailers. In-state
11makers, manufacturers, and fabricators licensed as
12distributors under Section 4 of this Act and out-of-state
13makers, manufacturers, and fabricators holding permits under
14Section 4b of this Act may not sell original packages of
15cigarettes to retailers. A retailer may sell only original
16packages of cigarettes obtained from manufacturer
17representatives, licensed secondary distributors, or licensed
18distributors other than in-state makers, manufacturers, or
19fabricators licensed as distributors under Section 4 of this
20Act and out-of-state makers, manufacturers, or fabricators
21holding permits under Section 4b of this Act.
22(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
2396-1027, eff. 7-12-10.)
 
24    (35 ILCS 130/4f new)

 

 

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1    Sec. 4f. Manufacturer representatives.
2    (a) No manufacturer may market cigarettes produced by the
3manufacturer directly to retailers in this State without first
4having obtained authorization from the Department. Application
5for authority to maintain representatives in this State to
6market in this State cigarettes produced by the manufacturer
7shall be made to the Department on a form furnished and
8prescribed by the Department. Each applicant under this Section
9shall furnish the following information to the Department on a
10form signed and verified by the applicant under penalty of
11perjury:
12        (1) the name and address of the applicant;
13        (2) the address of every location from which the
14    applicant proposes to engage in business in this State;
15        (3) the number of manufacturer representatives the
16    applicant requests to maintain in this State; and
17        (4) any other additional information as the Department
18    may reasonably require.
19    The following manufacturers are ineligible to receive
20authorization to maintain manufacturer representatives in this
21State:
22        (1) a manufacturer who owes, at the time of
23    application, any delinquent cigarette taxes that have been
24    determined by law to be due and unpaid, unless the
25    applicant has entered into an agreement approved by the
26    Department to pay the amount due;

 

 

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1        (2) a manufacturer who has had a license revoked within
2    the past 2 years for misconduct relating to stolen or
3    contraband cigarettes or has been convicted of a state or
4    federal crime, punishable by imprisonment of one year or
5    more, relating to stolen or contraband cigarettes;
6        (3) a manufacturer who has been found, after notice and
7    a hearing, to have imported or caused to be imported into
8    the United States for sale or distribution any cigarette in
9    violation of 19 U.S.C. 1681a;
10        (4) a manufacturer who has been found, after notice and
11    a hearing, to have imported or caused to be imported into
12    the United States for sale or distribution or manufactured
13    for sale or distribution in the United States any cigarette
14    that does not fully comply with the Federal Cigarette
15    Labeling and Advertising Act (15 U.S.C. 1331, et seq.);
16        (5) a manufacturer who has been found, after notice and
17    a hearing, to have made a material false statement in an
18    application or has failed to produce records required to be
19    maintained by this Act;
20        (6) a manufacturer who has been found, after notice and
21    hearing, to have violated any Section of this Act; or
22        (7) a manufacturer licensed as a distributor under
23    Section 4 of this Act or holding a permit under Section 4b
24    of this Act.
25    The Department, upon receipt of an application from a
26manufacturer who is eligible to maintain manufacturer

 

 

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1representatives in this State, shall notify the applicant in
2writing, not more than 60 days after an application has been
3received, that the applicant may or may not maintain the
4requested number of manufacturer representatives in this
5State. A copy of the notice authorizing a manufacturer to
6maintain manufacturer representatives in this State shall be
7available for inspection by the Department at each place of
8business identified in the application and in the motor vehicle
9operated by marketing representatives in the course of
10performing his or her duties in this State on behalf of the
11manufacturer.
12    A manufacturer representative shall notify the Department
13of any change in the information contained on the application
14form and shall do so within 30 days after any such change.
15    (b) Only directors, officers, and employees of the
16manufacturer may act as manufacturer representatives in this
17State. The manufacturer shall provide to the Department the
18names and addresses of the manufacturer representatives
19operating in this State and the make, model, and license plate
20number of each motor vehicle operated by a manufacturer
21representative in the course of performing his or her duties in
22this State on behalf of the manufacturer. The following
23individuals may not act as manufacturer representatives:
24        (1) an individual who owes any delinquent cigarette
25    taxes that have been determined by law to be due and
26    unpaid, unless the individual has entered into an agreement

 

 

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1    approved by the Department to pay the amount due;
2        (2) an individual who has had a license revoked within
3    the past 2 years for misconduct relating to stolen or
4    contraband cigarettes or has been convicted of a state or
5    federal crime, punishable by imprisonment of one year or
6    more, relating to stolen or contraband cigarettes;
7        (3) an individual who has been found, after notice and
8    a hearing, to have made a material false statement in an
9    application or has failed to produce records required to be
10    maintained by this Act; or
11        (4) an individual who has been found, after notice and
12    hearing, to have violated any Section of this Act.
13    (c) Manufacturer representatives may sell to retailers in
14this State only original packages of cigarettes made,
15manufactured, or fabricated by the manufacturer and purchased
16or obtained from a distributor licensed under this Act, or the
17Cigarette Tax Use Act, and on which tax stamps have been
18affixed. Manufacturer representatives may sell up to 600
19stamped original packages of cigarettes in a calendar year, for
20the purpose of promoting the manufacturer's brands of
21cigarettes. A manufacturer representative may not possess more
22than 500 stamped original packages of cigarettes made,
23manufactured, or fabricated by the manufacturer and purchased
24or obtained from a distributor licensed under this Act or the
25Cigarette Use Tax Act. Any original packages of cigarettes in
26the possession of a manufacturer representative that (i) are

 

 

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1not made, manufactured, or fabricated by the manufacturer and
2purchased or obtained from a distributor licensed under this
3Act or the Cigarette Use Tax Act, other than cigarettes for
4personal use and consumption, (ii) exceed the maximum quantity
5of 500 original packages of cigarettes, excluding packages of
6cigarettes for personal use and consumption; (iii) violate
7Section 3-10 of this Act; or (iv) do not have the proper tax
8stamps affixed, are contraband and subject to seizure and
9forfeiture.
10    Manufacturer representatives may sell stamped original
11packages of cigarettes to retailers on behalf of licensed
12distributors. The manufacturer representative shall provide
13the distributor with a signed receipt for the cigarettes
14obtained from the distributor. The distributor shall invoice
15the retailer, and the retailer shall pay the distributor for
16all cigarettes provided to retailers by manufacturer
17representatives on behalf of a distributor.
18    Manufacturer representatives may sell stamped original
19packages of cigarettes to retailers that are purchased from
20licensed distributors. Distributors shall provide manufacturer
21representatives with invoices for stamped original packages of
22cigarettes sold to manufacturer representatives. Manufacturer
23representatives shall invoice retailers, and the retailers
24shall pay the manufacturer representatives for all original
25packages of cigarettes sold to retailers.
26    (d) Any person aggrieved by any decision of the Department

 

 

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1under this Section may, within 20 days after notice of the
2decision, protest and request a hearing. Upon receiving a
3request for a hearing, the Department shall give notice to the
4person requesting the hearing of the time and place fixed for
5the hearing and shall hold a hearing in conformity with the
6provisions of this Act and then issue its final administrative
7decision in the matter to that person. In the absence of a
8protest and request for a hearing within 20 days, the
9Department's decision shall become final without any further
10determination being made or notice given.
 
11    (35 ILCS 130/7)  (from Ch. 120, par. 453.7)
12    Sec. 7. The Department or any officer or employee of the
13Department designated, in writing, by the Director thereof,
14shall at its or his or her own instance, or on the written
15request of any distributor, secondary distributor,
16manufacturer with authority to maintain manufacturer
17representatives, or other interested party to the proceeding,
18issue subpoenas requiring the attendance of and the giving of
19testimony by witnesses, and subpoenas duces tecum requiring the
20production of books, papers, records or memoranda. All
21subpoenas and subpoenas duces tecum issued under the terms of
22this Act may be served by any person of full age. The fees of
23witnesses for attendance and travel shall be the same as the
24fees of witnesses before the circuit court of this State; such
25fees to be paid when the witness is excused from further

 

 

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

 

 

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

 

 

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1    principal place of business is outside Illinois.
2    The Circuit Court of the County wherein the hearing is held
3has power to review all final administrative decisions of the
4Department in administering this Act. The provisions of the
5Administrative Review Law, and all amendments and
6modifications thereof, and the rules adopted pursuant thereto,
7shall apply to and govern all proceedings for the judicial
8review of final administrative decisions of the Department
9under this Act. The term "administrative decision" is defined
10as in Section 3-101 of the Code of Civil Procedure.
11    Service upon the Director of Revenue or Assistant Director
12of Revenue of summons issued in any action to review a final
13administrative decision shall be service upon the Department.
14The Department shall certify the record of its proceedings if
15the distributor, or secondary distributor, or manufacturer
16with authority to maintain manufacturer representatives pays
17to it the sum of 75¢ per page of testimony taken before the
18Department and 25¢ per page of all other matters contained in
19such record, except that these charges may be waived where the
20Department is satisfied that the aggrieved party is a poor
21person who cannot afford to pay such charges. Before the
22delivery of such record to the person applying for it, payment
23of these charges must be made, and if the record is not paid
24for within 30 days after notice that such record is available,
25the complaint may be dismissed by the court upon motion of the
26Department.

 

 

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1    No stay order shall be entered by the Circuit Court unless
2the distributor, or secondary distributor, or manufacturer
3with authority to maintain manufacturer representatives files
4with the court a bond in an amount fixed and approved by the
5court, to indemnify the State against all loss and injury which
6may be sustained by it on account of the review proceedings and
7to secure all costs which may be occasioned by such
8proceedings.
9    Whenever any proceeding provided by this Act is begun
10before the Department, either by the Department or by a person
11subject to this Act, and such person thereafter dies or becomes
12a person under legal disability before such proceeding is
13concluded, the legal representative of the deceased person or
14of the person under legal disability shall notify the
15Department of such death or legal disability. Such legal
16representative, as such, shall then be substituted by the
17Department for such person. If the legal representative fails
18to notify the Department of his or her appointment as such
19legal representative, the Department may, upon its own motion,
20substitute such legal representative in the proceeding pending
21before the Department for the person who died or became a
22person under legal disability.
23(Source: P.A. 96-1027, eff. 7-12-10.)
 
24    (35 ILCS 130/9)  (from Ch. 120, par. 453.9)
25    Sec. 9. Returns; remittance. Every distributor who is

 

 

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1required to procure a license under this Act, but who is not a
2manufacturer of cigarettes in original packages which are
3contained in a sealed transparent wrapper, shall, on or before
4the 15th day of each calendar month, file a return with the
5Department, showing the quantity of cigarettes manufactured
6during the preceding calendar month, the quantity of cigarettes
7brought into this State or caused to be brought into this State
8from outside this State during the preceding calendar month
9without authorized evidence on the original packages of such
10cigarettes underneath the sealed transparent wrapper thereof
11that the tax liability imposed by this Act has been assumed by
12the out-of-State seller of such cigarettes, the quantity of
13cigarettes purchased tax-paid during the preceding calendar
14month either within or outside this State, the quantity of
15cigarettes sold by manufacturer representatives on behalf of
16the distributor, the quantity of cigarettes sold to
17manufacturer representatives, and the quantity of cigarettes
18sold or otherwise disposed of during the preceding calendar
19month. Such return shall be filed upon forms furnished and
20prescribed by the Department and shall contain such other
21information as the Department may reasonably require. The
22Department may promulgate rules to require that the
23distributor's return be accompanied by appropriate
24computer-generated magnetic media supporting schedule data in
25the format required by the Department, unless, as provided by
26rule, the Department grants an exception upon petition of a

 

 

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1distributor.
2    Illinois manufacturers of cigarettes in original packages
3which are contained inside a sealed transparent wrapper shall
4file a return by the 5th day of each month covering the
5preceding calendar month. Each such return shall be accompanied
6by the appropriate remittance for tax as provided in the last
7paragraph of Section 3 of this Act. Each such return shall show
8the quantity of such cigarettes manufactured during the period
9covered by the return, the quantity of cigarettes sold or
10otherwise disposed of during the period covered by the return
11and such other information as the Department may lawfully
12require. Such returns shall be filed on forms prescribed and
13furnished by the Department. Each such return shall be
14accompanied by a copy of each invoice rendered by such
15manufacturer to any purchaser to whom such manufacturer
16delivered cigarettes (or caused cigarettes to be delivered)
17during the period covered by the return. The Department may
18promulgate rules to require that the manufacturer's return be
19accompanied by appropriate computer-generated magnetic media
20supporting schedule data in the format required by the
21Department, unless, as provided by rule, the Department grants
22an exception upon petition of a manufacturer.
23(Source: P.A. 92-322, eff. 1-1-02.)
 
24    (35 ILCS 130/9f new)
25    Sec. 9f. Manufacturer representatives; reports. Every

 

 

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1manufacturer with authority to maintain manufacturer
2representatives as defined by Section 4f of this Act shall, on
3or before the 15th day of each calendar month, file a report
4with the Department, showing the quantity of cigarettes
5purchased from licensed distributors during the preceding
6calendar month, either within or outside this State, and the
7quantity of cigarettes sold to retailers or otherwise disposed
8of during the preceding calendar month. Such reports shall be
9filed in the form prescribed by the Department and shall
10contain such other information as the Department may reasonably
11require. The report shall be filed electronically and be
12accompanied by appropriate computer generated magnetic media
13supporting schedule data in the format required by the
14Department, unless, as provided by rule, the Department grants
15an exception upon petition of a manufacturer with authority to
16maintain manufacturer representatives in this State.
17    A certification by the Director of the Department that a
18report has not been filed, or that information has not been
19supplied pursuant to the provisions of this Act, shall be prima
20facie evidence thereof.
 
21    (35 ILCS 130/10)  (from Ch. 120, par. 453.10)
22    Sec. 10. The Department, or any officer or employee
23designated in writing by the Director thereof, for the purpose
24of administering and enforcing the provisions of this Act, may
25hold investigations and hearings concerning any matters

 

 

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1covered by this Act, and may examine books, papers, records or
2memoranda bearing upon the sale or other disposition of
3cigarettes by a distributor, or secondary distributor,
4manufacturer with authority to maintain manufacturer
5representatives under Section 4f of this Act, or manufacturer
6representative, and may issue subpoenas requiring the
7attendance of a distributor, or secondary distributor,
8manufacturer with authority to maintain manufacturer
9representatives under Section 4f of this Act, or manufacturer
10representative, or any officer or employee of a distributor, or
11secondary distributor, manufacturer with authority to maintain
12manufacturer representatives under Section 4f of this Act, or
13any person having knowledge of the facts, and may take
14testimony and require proof, and may issue subpoenas duces
15tecum to compel the production of relevant books, papers,
16records and memoranda, for the information of the Department.
17    In the conduct of any investigation or hearing provided for
18by this Act, neither the Department, nor any officer or
19employee thereof, shall be bound by the technical rules of
20evidence, and no informality in the proceedings nor in the
21manner of taking testimony shall invalidate any rule, order,
22decision or regulation made, approved or confirmed by the
23Department.
24    The Director of Revenue, or any duly authorized officer or
25employee of the Department, shall have the power to administer
26oaths to such persons required by this Act to give testimony

 

 

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1before the said Department.
2    The books, papers, records and memoranda of the Department,
3or parts thereof, may be proved in any hearing, investigation
4or legal proceeding by a reproduced copy thereof under the
5certificate of the Director of Revenue. Such reproduced copy
6shall, without further proof, be admitted into evidence before
7the Department or in any legal proceeding.
8(Source: P.A. 96-1027, eff. 7-12-10.)
 
9    (35 ILCS 130/11b new)
10    Sec. 11b. Manufacturer representatives; records. Every
11manufacturer with authority to maintain manufacturer
12representatives under Section 4f of this Act shall keep within
13Illinois, at his business address identified under Section 4f
14of this Act, complete and accurate records of cigarettes
15purchased, sold, or otherwise disposed of, and shall preserve
16and keep within Illinois at his business address all invoices,
17sales records, copies of bills of sale, inventory at the close
18of each period for which a report is required of all cigarettes
19on hand, and other pertinent papers and documents relating to
20the purchase, sale, or disposition of cigarettes. All books and
21records and other papers and documents that are required by
22this Act to be kept shall be kept in the English language, and
23shall, at all times during the usual business hours of the day,
24be subject to inspection by the Department or its duly
25authorized agents and employees. The Department may adopt rules

 

 

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

 

 

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1marketing representatives in Illinois may be withdrawn by the
2Department.
 
3    (35 ILCS 130/23)  (from Ch. 120, par. 453.23)
4    Sec. 23. Every distributor, secondary distributor,
5manufacturer with authority to maintain manufacturer
6representatives under Section 4f of this Act and their
7manufacturer representatives, or other person who shall
8knowingly and wilfully sell or offer for sale any original
9package, as defined in this Act, having affixed thereto any
10fraudulent, spurious, imitation or counterfeit stamp, or stamp
11which has been previously affixed, or affixes a stamp which has
12previously been affixed to an original package, or who shall
13knowingly and wilfully sell or offer for sale any original
14package, as defined in this Act, having imprinted thereon
15underneath the sealed transparent wrapper thereof any
16fraudulent, spurious, imitation or counterfeit tax imprint,
17shall be deemed guilty of a Class 2 felony.
18(Source: P.A. 96-1027, eff. 7-12-10.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.