Full Text of SB3413 97th General Assembly
SB3413 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB3413 Introduced 2/7/2012, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED: |
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Amends the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Requires retailers of cigarettes to obtain a license from the Department of Revenue. Provides that the annual license fee payable to the Department is $250. Contains provisions concerning returns and penalties. Makes changes to the definition of "cigarette". Provides that a person who makes a sale of cigarettes to a purchaser for use or consumption and not for resale is not considered a "distributor". Effective January 1, 2013.
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| | CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY | | FISCAL NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Revenue Law is amended by | 5 | | changing Section 2505-380 as follows:
| 6 | | (20 ILCS 2505/2505-380) (was 20 ILCS 2505/39b47)
| 7 | | Sec. 2505-380.
Revocation of or refusal to issue or reissue | 8 | | a certificate of
registration, permit, or license. The | 9 | | Department has the power to
refuse to issue , reissue, or, after | 10 | | notice and an opportunity for
a hearing, to revoke a | 11 | | certificate of registration, permit, or license
issued or | 12 | | authorized to be issued by the Department if the applicant for
| 13 | | or holder of the certificate of registration, permit, or
| 14 | | license fails to
file a return, or to pay the tax, fee, | 15 | | penalty, or interest shown in a
filed
return, or to pay any | 16 | | final assessment of tax, fee,
penalty, or interest, as required | 17 | | by the tax or fee Act under which the
certificate
of | 18 | | registration, permit, or license is required or any other tax | 19 | | or fee Act
administered
by the Department.
| 20 | | The procedure for notice and hearing prior to revocation | 21 | | shall be as
provided under the Act pursuant to which the | 22 | | certificate of registration,
permit, or license was issued.
| 23 | | (Source: P.A. 91-239, eff. 1-1-00.)
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| 1 | | Section 10. The Illinois Cigarette Tax Act is amended by | 2 | | changing Sections 1, 3-10, 4d, 4e, 4f, 6, 7, 8, 10, 11, 23, and | 3 | | 26 and by adding Sections 4g, 4h, 9g, and 11c as follows:
| 4 | | (35 ILCS 130/1) (from Ch. 120, par. 453.1)
| 5 | | Sec. 1. For the purposes of this Act:
| 6 | | "Brand Style" means a variety of cigarettes distinguished | 7 | | by the tobacco used, tar and nicotine content, flavoring used, | 8 | | size of the cigarette, filtration on the cigarette or | 9 | | packaging. | 10 | | "Cigarette", through December 31, 2012, means any
roll for | 11 | | smoking made wholly or in part of tobacco irrespective of size
| 12 | | or shape and whether or not such tobacco is flavored, | 13 | | adulterated or
mixed with any other ingredient, and the wrapper | 14 | | or cover of which is
made of paper or any other substance or | 15 | | material except tobacco.
| 16 | | "Cigarette", beginning on and after January 1, 2013, means | 17 | | any roll for smoking made wholly or in part of tobacco | 18 | | irrespective of size or shape and whether or not such tobacco | 19 | | is flavored, adulterated, or mixed with any other ingredient, | 20 | | and the wrapper or cover of which is made of paper. | 21 | | "Cigarette", beginning on and after January 1, 2013, also | 22 | | means: any roll for smoking made wholly or in part of tobacco | 23 | | labeled as anything other than a cigarette or not bearing a | 24 | | label, if it meets two or more of the following criteria: |
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| 1 | | (1) the product is sold in packs similar to cigarettes; | 2 | | (2) the product is available for sale in cartons of ten | 3 | | packs; | 4 | | (3) the product is sold in soft packs, hard packs, | 5 | | flip-top boxes, clam shells, or other cigarette-type | 6 | | boxes; | 7 | | (4) the product is of a length and diameter found in | 8 | | commercially-manufactured cigarettes; | 9 | | (5) the product has a cellulose acetate or other | 10 | | integrated filter; | 11 | | (6) the product weighs less than three pounds per | 12 | | thousand sticks; | 13 | | (7) the product is marketed or advertised to consumers | 14 | | as a cigarette or cigarette substitute; or | 15 | | (8) other evidence that the product fits within the | 16 | | definition of cigarette. | 17 | | "Contraband cigarettes" means: | 18 | | (a) cigarettes that do not bear a required tax stamp | 19 | | under this Act; | 20 | | (b) cigarettes for which any required federal taxes | 21 | | have not been paid; | 22 | | (c) cigarettes that bear a counterfeit tax stamp; | 23 | | (d) cigarettes that are manufactured, fabricated, | 24 | | assembled, processed, packaged, or labeled by any person | 25 | | other than (i) the owner of the trademark rights in the | 26 | | cigarette brand or (ii) a person that is directly or |
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| 1 | | indirectly authorized by such owner; | 2 | | (e) cigarettes imported into the United States, or | 3 | | otherwise distributed, in violation of the federal | 4 | | Imported Cigarette Compliance Act of 2000 (Title IV of | 5 | | Public Law 106-476); | 6 | | (f) cigarettes that have false manufacturing labels; | 7 | | (g) cigarettes identified in Section 3-10(a)(1) of | 8 | | this Act; or | 9 | | (h) cigarettes that are improperly tax stamped, | 10 | | including cigarettes that bear a tax stamp of another state | 11 | | or taxing jurisdiction. | 12 | | "Person" means any natural individual, firm, partnership, | 13 | | association, joint
stock company, joint adventure, public or | 14 | | private corporation, however formed,
limited liability | 15 | | company, or a receiver, executor, administrator, trustee,
| 16 | | guardian or other representative appointed by order of any | 17 | | court.
| 18 | | "Prior Continuous Compliance Taxpayer" means any person | 19 | | who is licensed
under this Act and who, having been a licensee | 20 | | for a continuous period of 5
years, is determined by the | 21 | | Department not to have been either delinquent
or deficient in | 22 | | the payment of tax liability during that period or
otherwise in | 23 | | violation of this Act. Also, any taxpayer who has, as
verified | 24 | | by the Department, continuously complied with the condition of | 25 | | his
bond or other security under provisions of this Act for a | 26 | | period of 5
consecutive years shall be considered to be a |
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| 1 | | "Prior continuous compliance
taxpayer". In calculating the | 2 | | consecutive period of time described herein
for qualification | 3 | | as a "prior continuous compliance taxpayer", a
consecutive | 4 | | period of time of qualifying compliance immediately prior to
| 5 | | the effective date of this amendatory Act of 1987 shall be | 6 | | credited to any
licensee who became licensed on or before the | 7 | | effective date of this
amendatory Act of 1987.
| 8 | | "Department" means the Department of Revenue.
| 9 | | "Sale" means any transfer, exchange or barter in any manner | 10 | | or by any
means whatsoever for a consideration, and includes | 11 | | and means all sales
made by any person.
| 12 | | "Original Package" means the individual packet, box or | 13 | | other container
whatsoever used to contain and to convey | 14 | | cigarettes to the consumer.
| 15 | | "Distributor" means any and each of the following:
| 16 | | (1) Any person engaged in the business of selling | 17 | | cigarettes in this
State who brings or causes to be brought | 18 | | into this State from without
this State any original | 19 | | packages of cigarettes, on which original
packages there is | 20 | | no authorized evidence underneath a sealed transparent
| 21 | | wrapper showing that the tax liability imposed by this Act | 22 | | has been paid
or assumed by the out-of-State seller of such | 23 | | cigarettes, for sale or
other disposition in the course of | 24 | | such business.
| 25 | | (2) Any person who makes, manufactures or fabricates | 26 | | cigarettes in this
State for sale in this State, except a |
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| 1 | | person who makes, manufactures
or fabricates cigarettes as | 2 | | a part of a correctional industries program
for sale to | 3 | | residents incarcerated in penal institutions or resident | 4 | | patients
of a State-operated mental health facility.
| 5 | | (3) Any person who makes, manufactures or fabricates | 6 | | cigarettes
outside this State, which cigarettes are placed | 7 | | in original packages
contained in sealed transparent | 8 | | wrappers, for delivery or shipment into
this State, and who | 9 | | elects to qualify and is accepted by the Department
as a | 10 | | distributor under Section 4b of this Act.
| 11 | | "Distributor" does not include any person who makes a sale | 12 | | of cigarettes to a purchaser for use or consumption, and not | 13 | | for resale. | 14 | | "Place of business" shall mean and include any place where | 15 | | cigarettes
are sold or where cigarettes are manufactured, | 16 | | stored or kept for the
purpose of sale or consumption, | 17 | | including any vessel, vehicle, airplane,
train or vending | 18 | | machine.
| 19 | | "Manufacturer representative" means a director, officer, | 20 | | or employee of a manufacturer who has obtained authority from | 21 | | the Department under Section 4f to maintain representatives in | 22 | | Illinois that provide or sell original packages of cigarettes | 23 | | made, manufactured, or fabricated by the manufacturer to | 24 | | retailers in compliance with Section 4f of this Act to promote | 25 | | cigarettes made, manufactured, or fabricated by the | 26 | | manufacturer. |
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| 1 | | "Business" means any trade, occupation, activity or | 2 | | enterprise
engaged in for the purpose of selling cigarettes in | 3 | | this State.
| 4 | | "Retailer" means any person who engages in the making of | 5 | | transfers of
the ownership of, or title to, cigarettes to a | 6 | | purchaser for use or
consumption and not for resale in any | 7 | | form, for a valuable consideration. "Retailer" does not include | 8 | | a 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 | 19 | | engages in
the making of transfers of the ownership of, or | 20 | | title to, cigarettes to
a purchaser, for use or consumption by | 21 | | any other person to whom such
purchaser may transfer the | 22 | | cigarettes without a valuable consideration,
except a person | 23 | | who transfers to residents incarcerated in penal institutions
| 24 | | or resident patients of a State-operated mental health facility | 25 | | ownership
of cigarettes made, manufactured or fabricated as | 26 | | part of a correctional
industries program.
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| 1 | | "Secondary distributor" means any person engaged in the | 2 | | business of selling cigarettes who purchases stamped original | 3 | | packages of cigarettes from a licensed distributor under this | 4 | | Act or the Cigarette Use Tax Act, sells 75% or more of those | 5 | | cigarettes to retailers for resale, and maintains an | 6 | | established business where a substantial stock of cigarettes is | 7 | | available to retailers for resale. | 8 | | "Stamp" or "stamps" mean the indicia required to be affixed | 9 | | on a pack of cigarettes that evidence payment of the tax on | 10 | | cigarettes under Section 2 of this Act. | 11 | | "Related party" means any person that is associated with | 12 | | any 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. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10; | 16 | | 97-587, eff. 8-26-11.)
| 17 | | (35 ILCS 130/3-10)
| 18 | | Sec. 3-10. Cigarette enforcement.
| 19 | | (a) Prohibitions. It is unlawful for any person:
| 20 | | (1) to sell or distribute in this State; to acquire, | 21 | | hold, own, possess,
or
transport, for sale or distribution | 22 | | in this State; or to import, or cause to be
imported into | 23 | | this State for sale or distribution in this State:
| 24 | | (A) any cigarettes the package of which:
| 25 | | (i) bears any statement, label, stamp, |
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| 1 | | sticker, or notice
indicating that the | 2 | | manufacturer did not intend the cigarettes to be
| 3 | | sold, distributed, or used in the United States, | 4 | | including but not
limited to labels stating "For | 5 | | Export Only", "U.S. Tax Exempt",
"For Use Outside | 6 | | U.S.", or similar wording; or
| 7 | | (ii) does not comply with:
| 8 | | (aa) all requirements imposed by or | 9 | | pursuant to
federal law regarding warnings and | 10 | | other information on
packages of cigarettes | 11 | | manufactured, packaged, or imported
for sale, | 12 | | distribution, or use in the United States, | 13 | | including
but not limited to the precise | 14 | | warning labels specified in the
federal | 15 | | Cigarette Labeling and Advertising Act, 15 | 16 | | U.S.C.
1333; and
| 17 | | (bb) all federal trademark and copyright | 18 | | laws;
| 19 | | (B) any cigarettes imported into the United States | 20 | | in violation of
26 U.S.C. 5754 or any other federal | 21 | | law, or implementing federal
regulations;
| 22 | | (C) any cigarettes that such person otherwise | 23 | | knows or has reason
to know the manufacturer did not | 24 | | intend to be sold, distributed, or used in
the United | 25 | | States; or
| 26 | | (D) any cigarettes for which there has not been |
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| 1 | | submitted to the
Secretary of the U.S. Department of | 2 | | Health and Human Services the list or
lists of the | 3 | | ingredients added to tobacco in the manufacture of the
| 4 | | cigarettes required by the federal Cigarette Labeling | 5 | | and Advertising Act,
15 U.S.C. 1335a;
| 6 | | (2) to alter the package of any cigarettes, prior to | 7 | | sale or distribution
to
the
ultimate consumer, so as to | 8 | | remove, conceal, or obscure:
| 9 | | (A) any statement, label, stamp, sticker, or | 10 | | notice described in
subdivision (a)(1)(A)(i) of this | 11 | | Section;
| 12 | | (B) any health warning that is not specified in, or | 13 | | does not conform
with the requirements of, the federal | 14 | | Cigarette Labeling and Advertising
Act, 15 U.S.C. | 15 | | 1333; or
| 16 | | (3) to affix any stamp required pursuant to this Act to | 17 | | the package of any
cigarettes described in subdivision | 18 | | (a)(1) of this Section or altered in
violation of
| 19 | | subdivision (a)(2).
| 20 | | (b) Documentation. On the first business day of each month, | 21 | | each person
licensed
to affix the State tax stamp to cigarettes | 22 | | shall file with the Department, for
all cigarettes
imported | 23 | | into the United States to which the person has affixed the tax | 24 | | stamp
in the
preceding month:
| 25 | | (1) a copy of:
| 26 | | (A) the permit issued pursuant to the Internal |
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| 1 | | Revenue Code, 26
U.S.C. 5713, to the person importing | 2 | | the cigarettes into the United States
allowing the | 3 | | person to import the cigarettes; and
| 4 | | (B) the customs form containing, with respect to | 5 | | the cigarettes, the
internal revenue tax information | 6 | | required by the U.S. Bureau of Alcohol,
Tobacco and | 7 | | Firearms;
| 8 | | (2) a statement, signed by the person under penalty of | 9 | | perjury, which shall
be treated as confidential by the | 10 | | Department and exempt from disclosure under
the Freedom of | 11 | | Information Act, identifying the brand and brand styles of | 12 | | all such
cigarettes, the quantity of each brand style of | 13 | | such cigarettes, the supplier of such
cigarettes, and the | 14 | | person or persons, if any, to whom such cigarettes have | 15 | | been
conveyed for resale; and a separate statement, signed | 16 | | by the individual under
penalty of perjury, which shall not | 17 | | be treated as confidential or exempt from
disclosure, | 18 | | separately identifying the brands and brand styles of such
| 19 | | cigarettes;
and
| 20 | | (3) a statement, signed by an officer of the | 21 | | manufacturer or importer
under penalty of perjury, | 22 | | certifying that the manufacturer or importer has
complied | 23 | | with:
| 24 | | (A) the package health warning and ingredient | 25 | | reporting
requirements of the federal Cigarette | 26 | | Labeling and Advertising Act, 15
U.S.C. 1333 and 1335a, |
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| 1 | | with respect to such cigarettes; and
| 2 | | (B) the provisions of Exhibit T of the Master | 3 | | Settlement Agreement
entered in
the case of People of | 4 | | the State of Illinois v. Philip Morris, et al. (Circuit
| 5 | | Court of Cook County, No. 96-L13146), including a | 6 | | statement
indicating whether the manufacturer is, or | 7 | | is not, a participating tobacco
manufacturer within | 8 | | the meaning of Exhibit T.
| 9 | | (c) Administrative sanctions.
| 10 | | (1) Upon finding that a distributor, secondary | 11 | | distributor, retailer, or person has committed any of the | 12 | | acts
prohibited by
subsection
(a), knowing or having reason | 13 | | to know that he or she has done so, or upon finding that a | 14 | | distributor or person has failed
to comply
with any | 15 | | requirement of subsection (b), the Department
may revoke or | 16 | | suspend the license or licenses of any
distributor , or | 17 | | secondary distributor , or retailer pursuant to the | 18 | | procedures set forth in Section 6 and impose, on the
| 19 | | distributor, secondary distributor, retailer, or person, a | 20 | | civil penalty in an amount not to exceed the greater of | 21 | | 500% of
the
retail value of the cigarettes involved or | 22 | | $5,000.
| 23 | | (2) Cigarettes that are acquired, held, owned, | 24 | | possessed, transported in,
imported into, or sold or | 25 | | distributed in this State in violation of this
Section | 26 | | shall be deemed contraband under this Act and are subject |
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| 1 | | to seizure
and forfeiture as provided in this Act, and all | 2 | | such cigarettes seized and
forfeited shall be destroyed or | 3 | | maintained and used in an undercover capacity. Such | 4 | | cigarettes shall be deemed contraband
whether the | 5 | | violation of this Section is knowing or otherwise.
| 6 | | (d) Unfair trade practices. In addition to any other | 7 | | penalties provided for in this Act, a violation of subsection | 8 | | (a) or subsection
(b) of this Section shall constitute an | 9 | | unlawful practice as provided in the
Consumer Fraud and | 10 | | Deceptive Business Practices Act.
| 11 | | (d-1) Retailers issued a license under Section 4g of this | 12 | | Act and secondary distributors shall not be liable under | 13 | | subsections (c)(1) and (d) of this Section for unknowingly | 14 | | possessing, selling, or distributing to consumers or users | 15 | | cigarettes identified in subsection (a)(1) of this Section if | 16 | | the cigarettes possessed, sold, or distributed by the licensed | 17 | | retailer or secondary distributor were obtained from a | 18 | | distributor licensed under this Act. | 19 | | (d-2) Criminal Penalties. A distributor, secondary | 20 | | distributor, retailer, or person who violates subsection (a), | 21 | | or a distributor, secondary distributor, or person who violates | 22 | | subsection (b) of this Section shall be guilty of a Class 4 | 23 | | felony. | 24 | | (e) Unfair cigarette sales. For purposes of the Trademark | 25 | | Registration and
Protection Act and the Counterfeit Trademark | 26 | | Act, cigarettes imported or
reimported into the United States |
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| 1 | | for sale or distribution under any trade
name, trade dress, or | 2 | | trademark that is the same as, or is confusingly similar
to, | 3 | | any trade name, trade dress, or trademark used for cigarettes | 4 | | manufactured
in the United States for sale or distribution in | 5 | | the United States shall be
presumed to have been purchased | 6 | | outside of the ordinary channels of trade.
| 7 | | (f) General provisions.
| 8 | | (1) This Section shall be enforced by the Department; | 9 | | provided that, at
the request of the Director of Revenue or | 10 | | the Director's duly authorized agent,
the State police and | 11 | | all local police authorities shall enforce the provisions
| 12 | | of this Section. The Attorney General has concurrent power | 13 | | with the State's
Attorney of any county to enforce this | 14 | | Section.
| 15 | | (2) For the purpose of enforcing this Section, the | 16 | | Director of Revenue and
any agency to which the Director | 17 | | has delegated enforcement
responsibility pursuant to | 18 | | subdivision (f)(1) may request information from any
State | 19 | | or local agency and may share information with and request | 20 | | information
from any federal agency and any agency of any | 21 | | other state or any local agency
of any other state.
| 22 | | (3) In addition to any other remedy provided by law, | 23 | | including
enforcement as provided in subdivision (f) | 24 | | (a) (1), any person may bring an action
for appropriate | 25 | | injunctive or other equitable relief for a violation of | 26 | | this
Section; actual damages, if any, sustained by reason |
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| 1 | | of the violation; and, as
determined by the court, interest | 2 | | on the damages from the date of the
complaint, taxable | 3 | | costs, and reasonable attorney's fees. If the trier of fact
| 4 | | finds that the violation is flagrant, it may increase | 5 | | recovery to an amount not
in excess of 3 times the actual | 6 | | damages sustained by reason of the violation.
| 7 | | (g) Definitions. As used in this Section:
| 8 | | "Importer" means that term as defined in 26 U.S.C. 5702(1).
| 9 | | "Package" means that term as defined in 15 U.S.C. 1332(4).
| 10 | | (h) Applicability.
| 11 | | (1) This Section does not apply to:
| 12 | | (A) cigarettes allowed to be imported or brought | 13 | | into the United
States for personal use; and
| 14 | | (B) cigarettes sold or intended to be sold as | 15 | | duty-free merchandise
by a duty-free sales enterprise | 16 | | in accordance with the provisions of 19
U.S.C. 1555(b) | 17 | | and any implementing regulations; except that this | 18 | | Section
shall apply to any such cigarettes that are | 19 | | brought back into the customs
territory for resale | 20 | | within the customs territory.
| 21 | | (2) The penalties provided in this Section are in | 22 | | addition to any other
penalties imposed under other | 23 | | provision of law.
| 24 | | (Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10; | 25 | | 96-1027, eff. 7-12-10.)
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| 1 | | (35 ILCS 130/4d) | 2 | | Sec. 4d. Sales of cigarettes to and by retailers. In-state | 3 | | makers, manufacturers, and fabricators licensed as | 4 | | distributors under Section 4 of this Act and out-of-state | 5 | | makers, manufacturers, and fabricators holding permits under | 6 | | Section 4b of this Act may not sell original packages of | 7 | | cigarettes to retailers. A retailer who is licensed under | 8 | | Section 4g of this Act may sell only original packages of | 9 | | cigarettes obtained from manufacturer representatives, | 10 | | licensed secondary distributors, or licensed distributors | 11 | | other than in-state makers, manufacturers, or fabricators | 12 | | licensed as distributors under Section 4 of this Act and | 13 | | out-of-state makers, manufacturers, or fabricators holding | 14 | | permits under Section 4b of this Act.
| 15 | | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10; | 16 | | 97-587, eff. 8-26-11.) | 17 | | (35 ILCS 130/4e) | 18 | | Sec. 4e. Sales of cigarettes to and by secondary | 19 | | distributors. In-state makers, manufacturers, and fabricators | 20 | | licensed as distributors under Section 4 of this Act and | 21 | | out-of-state makers, manufacturers, and fabricators holding | 22 | | permits under Section 4b of this Act may not sell original | 23 | | packages of cigarettes to secondary distributors. A secondary | 24 | | distributor may sell only original packages of cigarettes | 25 | | obtained from licensed distributors other than in-state |
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| 1 | | makers, manufacturers, or fabricators licensed as distributors | 2 | | under Section 4 of this Act and out-of-state makers, | 3 | | manufacturers, or fabricators holding permits under Section 4b | 4 | | of this Act. Secondary distributors may sell cigarettes to | 5 | | Illinois retailers issued a license under Section 4g of this | 6 | | Act for resale, and are also authorized to make retail sales | 7 | | of cigarettes at the location on the secondary distributor's | 8 | | license as long as the secondary distributor obtains a license | 9 | | under Section 4g of the Cigarette Tax Act and sells 75% or more | 10 | | of the cigarettes sold at such location to retailers issued a | 11 | | license under Section 4g of this Act for resale. All sales by | 12 | | secondary distributors to retailers issued a license under | 13 | | Section 4g of this Act must be made at the location on the | 14 | | secondary distributor's license. Retailers issued a license | 15 | | under Section 4g of this Act must take possession of all | 16 | | cigarettes sold by the secondary distributor at the secondary | 17 | | distributor's licensed address. Secondary distributors may not | 18 | | make deliveries of cigarettes to retailers. | 19 | | Secondary distributors may not file a claim for credit or | 20 | | refund with the State under Section 9d of this Act.
| 21 | | (Source: P.A. 96-1027, eff. 7-12-10.) | 22 | | (35 ILCS 130/4f) | 23 | | Sec. 4f. Manufacturer representatives. | 24 | | (a) No manufacturer may market cigarettes produced by the | 25 | | manufacturer directly to retailers in this State issued a |
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| 1 | | license under Section 4g of this Act without first having | 2 | | obtained authorization from the Department. Application for | 3 | | authority to maintain representatives in this State to market | 4 | | in this State cigarettes produced by the manufacturer shall be | 5 | | made to the Department on a form furnished and prescribed by | 6 | | the Department. Each applicant under this Section shall furnish | 7 | | the following information to the Department on a form signed | 8 | | and verified by the applicant under penalty of perjury: | 9 | | (1) the name and address of the applicant; | 10 | | (2) the address of every location from which the | 11 | | applicant proposes to engage in business in this State; | 12 | | (3) the number of manufacturer representatives the | 13 | | applicant requests to maintain in this State; and | 14 | | (4) any other additional information as the Department | 15 | | may reasonably require. | 16 | | The following manufacturers are ineligible to receive | 17 | | authorization to maintain manufacturer representatives in this | 18 | | State: | 19 | | (1) a manufacturer who owes, at the time of | 20 | | application, any delinquent cigarette taxes that have been | 21 | | determined by law to be due and unpaid, unless the | 22 | | applicant has entered into an agreement approved by the | 23 | | Department to pay the amount due; | 24 | | (2) a manufacturer who has had a license revoked within | 25 | | the past 2 years for misconduct relating to stolen or | 26 | | contraband cigarettes or has been convicted of a state or |
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| 1 | | federal crime, punishable by imprisonment of one year or | 2 | | more, relating to stolen or contraband cigarettes; | 3 | | (3) a manufacturer who has been found, after notice and | 4 | | a hearing, to have imported or caused to be imported into | 5 | | the United States for sale or distribution any cigarette in | 6 | | violation of 19 U.S.C. 1681a; | 7 | | (4) a manufacturer who has been found, after notice and | 8 | | a hearing, to have imported or caused to be imported into | 9 | | the United States for sale or distribution or manufactured | 10 | | for sale or distribution in the United States any cigarette | 11 | | that does not fully comply with the Federal Cigarette | 12 | | Labeling and Advertising Act (15 U.S.C. 1331, et seq.); | 13 | | (5) a manufacturer who has been found, after notice and | 14 | | a hearing, to have made a material false statement in an | 15 | | application or has failed to produce records required to be | 16 | | maintained by this Act; | 17 | | (6) a manufacturer who has been found, after notice and | 18 | | hearing, to have violated any Section of this Act; or | 19 | | (7) a manufacturer licensed as a distributor under | 20 | | Section 4 of this Act or holding a permit under Section 4b | 21 | | of this Act. | 22 | | The Department, upon receipt of an application from a | 23 | | manufacturer who is eligible to maintain manufacturer | 24 | | representatives in this State, shall notify the applicant in | 25 | | writing, not more than 60 days after an application has been | 26 | | received, that the applicant may or may not maintain the |
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| 1 | | requested number of manufacturer representatives in this | 2 | | State. A copy of the notice authorizing a manufacturer to | 3 | | maintain manufacturer representatives in this State shall be | 4 | | available for inspection by the Department at each place of | 5 | | business identified in the application and in the motor vehicle | 6 | | operated by marketing representatives in the course of | 7 | | performing his or her duties in this State on behalf of the | 8 | | manufacturer. | 9 | | A manufacturer representative shall notify the Department | 10 | | of any change in the information contained on the application | 11 | | form and shall do so within 30 days after any such change. | 12 | | (b) Only directors, officers, and employees of the | 13 | | manufacturer may act as manufacturer representatives in this | 14 | | State. The manufacturer shall provide to the Department the | 15 | | names and addresses of the manufacturer representatives | 16 | | operating in this State and the make, model, and license plate | 17 | | number of each motor vehicle operated by a manufacturer | 18 | | representative in the course of performing his or her duties in | 19 | | this State on behalf of the manufacturer. The following | 20 | | individuals may not act as manufacturer representatives: | 21 | | (1) an individual who owes any delinquent cigarette | 22 | | taxes that have been determined by law to be due and | 23 | | unpaid, unless the individual has entered into an agreement | 24 | | approved by the Department to pay the amount due; | 25 | | (2) an individual who has had a license revoked within | 26 | | the past 2 years for misconduct relating to stolen or |
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| 1 | | contraband cigarettes or has been convicted of a state or | 2 | | federal crime, punishable by imprisonment of one year or | 3 | | more, relating to stolen or contraband cigarettes; | 4 | | (3) an individual who has been found, after notice and | 5 | | a hearing, to have made a material false statement in an | 6 | | application or has failed to produce records required to be | 7 | | maintained by this Act; or | 8 | | (4) an individual who has been found, after notice and | 9 | | hearing, to have violated any Section of this Act. | 10 | | (c) Manufacturer representatives may sell to retailers in | 11 | | this State who are licensed under Section 4g of this Act only | 12 | | original packages of cigarettes made, manufactured, or | 13 | | fabricated by the manufacturer and purchased or obtained from a | 14 | | distributor licensed under this Act, or the Cigarette Tax Use | 15 | | Act, and on which tax stamps have been affixed. Manufacturer | 16 | | representatives may sell up to 600 stamped original packages of | 17 | | cigarettes in a calendar year, for the purpose of promoting the | 18 | | manufacturer's brands of cigarettes. A manufacturer | 19 | | representative may not possess more than 500 stamped original | 20 | | packages of cigarettes made, manufactured, or fabricated by the | 21 | | manufacturer and purchased or obtained from a distributor | 22 | | licensed under this Act or the Cigarette Use Tax Act. Any | 23 | | original packages of cigarettes in the possession of a | 24 | | manufacturer representative that (i) are not made, | 25 | | manufactured, or fabricated by the manufacturer and purchased | 26 | | or obtained from a distributor licensed under this Act or the |
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| 1 | | Cigarette Use Tax Act, other than cigarettes for personal use | 2 | | and consumption, (ii) exceed the maximum quantity of 500 | 3 | | original packages of cigarettes, excluding packages of | 4 | | cigarettes for personal use and consumption; (iii) violate | 5 | | Section 3-10 of this Act; or (iv) do not have the proper tax | 6 | | stamps affixed, are contraband and subject to seizure and | 7 | | forfeiture. | 8 | | Manufacturer representatives may sell , on behalf of | 9 | | licensed distributors, stamped original packages of cigarettes | 10 | | to retailers who are licensed under Section 4g of this Act on | 11 | | behalf of licensed distributors . The manufacturer | 12 | | representative shall provide the distributor with a signed | 13 | | receipt for the cigarettes obtained from the distributor. The | 14 | | distributor shall invoice the licensed retailer, and the | 15 | | licensed retailer shall pay the distributor for all cigarettes | 16 | | provided to licensed retailers by manufacturer representatives | 17 | | on behalf of a distributor. | 18 | | Manufacturer representatives may sell stamped original | 19 | | packages of cigarettes to licensed retailers that are purchased | 20 | | from licensed distributors. Distributors shall provide | 21 | | manufacturer representatives with invoices for stamped | 22 | | original packages of cigarettes sold to manufacturer | 23 | | representatives. Manufacturer representatives shall invoice | 24 | | licensed retailers, and the licensed retailers shall pay the | 25 | | manufacturer representatives for all original packages of | 26 | | cigarettes sold to licensed retailers. |
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| 1 | | (d) Any person aggrieved by any decision of the Department | 2 | | under this Section may, within 20 days after notice of the | 3 | | decision, protest and request a hearing. Upon receiving a | 4 | | request for a hearing, the Department shall give notice to the | 5 | | person requesting the hearing of the time and place fixed for | 6 | | the hearing and shall hold a hearing in conformity with the | 7 | | provisions of this Act and then issue its final administrative | 8 | | decision in the matter to that person. In the absence of a | 9 | | protest and request for a hearing within 20 days, the | 10 | | Department's decision shall become final without any further | 11 | | determination being made or notice given.
| 12 | | (Source: P.A. 97-587, eff. 8-26-11.) | 13 | | (35 ILCS 130/4g new) | 14 | | Sec. 4g. Retailer's license. Beginning on January 1, 2013, | 15 | | no person may engage in business as a retailer of cigarettes in | 16 | | this State without first having obtained a license from the | 17 | | Department. Application for license shall be made to the | 18 | | Department on a form furnished and prescribed by the | 19 | | Department. Each applicant for a license under this Section | 20 | | shall furnish to the Department on the form signed and verified | 21 | | by the applicant the following information: | 22 | | (1) the name and address of the applicant; | 23 | | (2) the address of the location at which the applicant | 24 | | proposes to engage in business as a retailer of cigarettes | 25 | | in this State; and |
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| 1 | | (3) such other additional information as the | 2 | | Department may lawfully require by its rules and | 3 | | regulations. | 4 | | The annual license fee payable to the Department for each | 5 | | retailer's license shall be $250. The fee shall be deposited | 6 | | into the Tax Compliance and Administration Fund and used | 7 | | towards the cost of retail inspections. Each applicant for | 8 | | license shall pay the fee to the Department at the time of | 9 | | submitting his application for license to the Department. The | 10 | | Department may, by rule, require an applicant for a license | 11 | | under this Section to electronically file and pay the | 12 | | application and fee. | 13 | | Every applicant who is required to procure a retailer's | 14 | | license shall file with his application a joint and several | 15 | | bond. Such bond shall be executed to the Department of Revenue, | 16 | | with good and sufficient surety or sureties residing or | 17 | | licensed to do business within the State of Illinois, in an | 18 | | amount of not less than $2,500, conditioned upon the true and | 19 | | faithful compliance by the licensee with all of the provisions | 20 | | of this Act. Such bond, or a reissue thereof, or a substitute | 21 | | therefore, shall be kept in effect during the entire period | 22 | | covered by the license. | 23 | | A separate application for license shall be made, a | 24 | | separate annual license fee paid, and a separate bond filed, | 25 | | for each place of business at which a person who is required to | 26 | | procure a retailer's license under this Section proposes to |
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| 1 | | engage in business as a retailer in Illinois under this Act. | 2 | | The following are ineligible to receive a retailer's | 3 | | license under this Act: | 4 | | (1) a person who is not of good character and | 5 | | reputation in the community in which he resides; | 6 | | (2) a person who has been convicted of a felony under | 7 | | any federal or State law, if the Department, after | 8 | | investigation and a hearing, if requested by the applicant, | 9 | | determines that such person has not been sufficiently | 10 | | rehabilitated to warrant the public trust; | 11 | | (3) a corporation, if any officer, manager, or director | 12 | | thereof, or any stockholder or stockholders owning in the | 13 | | aggregate more than 5% of the stock of such corporation, | 14 | | would not be eligible to receive a license under this Act | 15 | | for any reason; | 16 | | (4) a person who possesses a distributor's license | 17 | | under Sections 4 and 4b of this Act or Sections 4 and 7 of | 18 | | the Cigarette Use Tax Act. | 19 | | The Department, upon receipt of an application, license fee | 20 | | and bond in proper form, from a person who is eligible to | 21 | | receive a retailer's license under this Act, shall issue to | 22 | | such applicant a license in form as prescribed by the | 23 | | Department. That license shall permit the applicant to whom it | 24 | | is issued to engage in business as a retailer under this Act at | 25 | | the place shown in his or her application. All licenses issued | 26 | | by the Department under this Section shall be valid for a |
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| 1 | | period not to exceed one year after issuance unless sooner | 2 | | revoked, canceled, or suspended as provided in this Act. No | 3 | | license issued under this Section is transferable or | 4 | | assignable. The license shall be conspicuously displayed in the | 5 | | place of business conducted by the licensee in Illinois under | 6 | | such license. The Department shall not issue a retailer's | 7 | | license to a retailer unless the retailer is also registered | 8 | | under the Retailers' Occupation Tax Act. A person who obtains a | 9 | | license as a retailer who ceases to do business as specified in | 10 | | the license, or who never commenced business, or who obtains a | 11 | | distributor's license, or whose license is suspended or | 12 | | revoked, shall immediately surrender the license to the | 13 | | Department. | 14 | | Any person aggrieved by any decision of the Department | 15 | | under this subsection may, within 20 days after notice of the | 16 | | decision, protest and request a hearing. Upon receiving a | 17 | | request for a hearing, the Department shall give notice to the | 18 | | person requesting the hearing of the time and place fixed for | 19 | | the hearing and shall hold a hearing in conformity with the | 20 | | provisions of this Act and then issue its final administrative | 21 | | decision in the matter to that person. In the absence of a | 22 | | protest and request for a hearing within 20 days, the | 23 | | Department's decision shall become final without any further | 24 | | determination being made or notice given. | 25 | | (35 ILCS 130/4h new) |
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| 1 | | Sec. 4h. Purchases of cigarettes by licensed retailers. A | 2 | | person who possesses a retailer's license under Section 4g of | 3 | | this Act shall obtain cigarettes for sale only from a licensed | 4 | | distributor, secondary distributor, or manufacturer | 5 | | representative.
| 6 | | (35 ILCS 130/6) (from Ch. 120, par. 453.6)
| 7 | | Sec. 6. Revocation, cancellation, or suspension of | 8 | | license. The Department may, after notice and hearing as | 9 | | provided for by this
Act, revoke, cancel or suspend the license | 10 | | of any distributor , or secondary distributor or retailer for | 11 | | the
violation of any provision of this Act, or for | 12 | | noncompliance with any
provision herein contained, or for any | 13 | | noncompliance with any lawful rule
or regulation promulgated by | 14 | | the Department under Section 8 of this Act, or
because the | 15 | | licensee is determined to be ineligible for a distributor's
| 16 | | license for any one or more of the reasons provided for in | 17 | | Section 4 of
this Act, or because the licensee is determined to | 18 | | be ineligible for a secondary distributor's license for any one | 19 | | or more of the reasons provided for in Section 4c of this Act , | 20 | | or because the licensee is determined to be ineligible for a | 21 | | retailer's license for any one or more of the reasons provided | 22 | | for in Section 4g of this Act . However, no such license shall | 23 | | be revoked, cancelled or
suspended, except after a hearing by | 24 | | the Department with notice to the
distributor , or secondary | 25 | | distributor , or retailer , as aforesaid, and affording such |
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| 1 | | distributor , or secondary distributor , or retailer a | 2 | | reasonable
opportunity to appear and defend, and any | 3 | | distributor , or secondary distributor , or retailer aggrieved | 4 | | by any
decision of the Department with respect thereto may have | 5 | | the determination
of the Department judicially reviewed, as | 6 | | herein provided.
| 7 | | The Department may revoke, cancel, or suspend the license | 8 | | of any
distributor for a violation of the Tobacco Product | 9 | | Manufacturers' Escrow
Enforcement Act as provided in Section 30 | 10 | | of that Act. The Department may revoke, cancel, or suspend the | 11 | | license of any secondary distributor for a violation of | 12 | | subsection (e) of Section 15 of the Tobacco Product | 13 | | Manufacturers' Escrow Enforcement Act.
| 14 | | Any distributor , or secondary distributor , or retailer | 15 | | aggrieved by any decision of the Department under this
Section
| 16 | | may, within 20 days after notice of the decision, protest and | 17 | | request a
hearing. Upon receiving a request for a hearing, the | 18 | | Department shall give
notice in writing to the distributor , or | 19 | | secondary distributor , or retailer requesting the hearing that | 20 | | contains a
statement of the charges preferred against the | 21 | | distributor , or secondary distributor , or retailer and that | 22 | | states the
time and place fixed for the hearing. The Department | 23 | | shall hold the hearing in
conformity with the provisions of | 24 | | this Act and then issue its final
administrative decision in | 25 | | the matter to the distributor , or secondary distributor , or | 26 | | retailer . In the absence of a
protest and request for a hearing |
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| 1 | | within 20 days, the Department's decision
shall become final | 2 | | without any further determination being made or notice
given.
| 3 | | No license so revoked, as aforesaid, shall be reissued to | 4 | | any such
distributor , or secondary distributor , or retailer | 5 | | within a period of 6 months after the date of the final
| 6 | | determination of such revocation. No such license shall be | 7 | | reissued at all
so long as the person who would receive the | 8 | | license is ineligible to
receive a distributor's license under | 9 | | this Act for any one or more of the
reasons provided for in | 10 | | Section 4 of this Act , or is ineligible to receive a secondary | 11 | | distributor's license under this Act for any one or more of the | 12 | | reasons provided for in Section 4c of this Act , or is | 13 | | determined to be ineligible for a retailer's license under the | 14 | | Act for any one or more of the reasons provided for in Section | 15 | | 4g of this Act .
| 16 | | The Department upon complaint filed in the circuit
court | 17 | | may by injunction
restrain any person who fails, or refuses, to | 18 | | comply with any of the
provisions of this Act from acting as a | 19 | | distributor , or secondary distributor , or retailer of | 20 | | cigarettes in this
State.
| 21 | | (Source: P.A. 96-1027, eff. 7-12-10.)
| 22 | | (35 ILCS 130/7) (from Ch. 120, par. 453.7)
| 23 | | Sec. 7.
The Department or any officer or employee of the | 24 | | Department
designated, in writing, by the Director thereof, | 25 | | shall at its or his or
her own instance, or on the written |
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| 1 | | request of any distributor, secondary distributor, retailer, | 2 | | manufacturer with authority to maintain manufacturer | 3 | | representatives, or other interested
party to the proceeding, | 4 | | issue subpoenas requiring the attendance of and
the giving of | 5 | | testimony by witnesses, and subpoenas duces tecum requiring
the | 6 | | production of books, papers, records or memoranda. All | 7 | | subpoenas and
subpoenas duces tecum issued under the terms of | 8 | | this Act may be served by
any person of full age. The fees of | 9 | | witnesses for attendance and travel
shall be the same as the | 10 | | fees of witnesses before the circuit court of this
State; such | 11 | | fees to be paid when the witness is excused from further
| 12 | | attendance. When the witness is subpoenaed at the instance of | 13 | | the
Department or any officer or employee thereof, such fees | 14 | | shall be paid in
the same manner as other expenses of the | 15 | | Department, and when the witness
is subpoenaed at the instance | 16 | | of any other party to any such proceeding,
the cost of service | 17 | | of the subpoena or subpoena duces tecum and the fee of
the | 18 | | witness shall be borne by the party at whose instance the | 19 | | witness is
summoned. In such case the Department, in its | 20 | | discretion, may require a
deposit to cover the cost of such | 21 | | service and witness fees. A subpoena or
subpoena duces tecum so | 22 | | issued shall be served in the same manner as a subpoena
or | 23 | | subpoena duces tecum issued out of a court.
| 24 | | Any circuit court of this State, upon the
application of | 25 | | the Department or any officer or employee thereof, or upon
the | 26 | | application of any other party to the proceeding, may, in its
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| 1 | | discretion, compel the attendance of witnesses, the production | 2 | | of books,
papers, records or memoranda and the giving of | 3 | | testimony before the
Department or any officer or employee | 4 | | thereof conducting an investigation
or holding a hearing | 5 | | authorized by this Act, by an attachment for contempt,
or | 6 | | otherwise, in the same manner as production of evidence may be | 7 | | compelled
before the court.
| 8 | | The Department or any officer or employee thereof, or any | 9 | | other party in
an investigation or hearing before the | 10 | | Department, may cause the
depositions of witnesses within the | 11 | | State to be taken in the manner
prescribed by law for like | 12 | | depositions, or depositions for discovery in
civil actions in | 13 | | courts of this State, and to that end compel the
attendance of | 14 | | witnesses and the production of books, papers, records or
| 15 | | memoranda, in the same manner hereinbefore provided.
| 16 | | (Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
| 17 | | (35 ILCS 130/8) (from Ch. 120, par. 453.8)
| 18 | | Sec. 8.
The Department may make, promulgate and enforce | 19 | | such
reasonable rules and regulations relating to the | 20 | | administration and
enforcement of this Act as may be deemed | 21 | | expedient.
| 22 | | Whenever notice is required by this Act, such notice may be | 23 | | given by
United States certified or registered mail, addressed | 24 | | to the person concerned at his
last known address, and proof of | 25 | | such mailing shall be sufficient for the
purposes of this Act. |
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| 1 | | Notice of any hearing provided for by this Act shall
be so | 2 | | given not less than 7 days prior to the day fixed for the | 3 | | hearing.
| 4 | | Hearings provided for in this Act shall be held:
| 5 | | (1) In Cook County, if the taxpayer's or licensee's | 6 | | principal place of business is in
that county;
| 7 | | (2) At the Department's office nearest the taxpayer's | 8 | | or licensee's principal place of
business, if the | 9 | | taxpayer's or licensee's principal place of business is in | 10 | | Illinois but
outside Cook County;
| 11 | | (3) In Sangamon County, if the taxpayer's or licensee's | 12 | | principal place of business is
outside Illinois.
| 13 | | The Circuit Court of the County wherein the hearing is held | 14 | | has
power to review all final administrative decisions of the | 15 | | Department in
administering this Act. The provisions of the | 16 | | Administrative Review Law,
and all amendments and
| 17 | | modifications thereof, and the rules adopted pursuant thereto, | 18 | | shall
apply to and govern all proceedings for the judicial | 19 | | review of final
administrative decisions of the Department | 20 | | under this Act. The term
"administrative decision" is defined | 21 | | as in Section 3-101 of the Code of Civil Procedure.
| 22 | | Service upon the Director of Revenue or Assistant Director | 23 | | of Revenue
of summons issued in any action to review a final
| 24 | | administrative decision shall be service upon the Department. | 25 | | The
Department shall certify the record of its proceedings if | 26 | | the distributor, secondary distributor, retailer, or |
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| 1 | | manufacturer with authority to maintain manufacturer | 2 | | representatives pays to it the sum of 75˘ per page of testimony | 3 | | taken before the Department
and 25˘ per page of all other | 4 | | matters contained in such record, except that
these charges may | 5 | | be waived where the Department is satisfied that the aggrieved
| 6 | | party is a poor person who cannot afford to pay such charges.
| 7 | | Before the delivery of such record to the person applying for | 8 | | it, payment
of these charges must be made, and if
the record is | 9 | | not paid for within 30 days after notice that such record
is | 10 | | available, the
complaint may be dismissed by the court upon | 11 | | motion of the Department.
| 12 | | No stay order shall be entered by the Circuit Court unless | 13 | | the
distributor, secondary distributor, retailer, or | 14 | | manufacturer with authority to maintain manufacturer | 15 | | representatives files with the court a bond in an amount fixed | 16 | | and approved by
the court, to indemnify the State against all | 17 | | loss and injury which may be
sustained by it on account of the | 18 | | review proceedings and to secure all
costs which may be | 19 | | occasioned by such proceedings.
| 20 | | Whenever any proceeding provided by this Act is begun | 21 | | before the
Department, either by the Department or by a person | 22 | | subject to this Act,
and such person thereafter dies or becomes | 23 | | a person under legal disability
before such
proceeding is | 24 | | concluded, the legal representative of the deceased person
or | 25 | | of the person under legal disability shall notify
the | 26 | | Department of such death or legal disability.
Such legal |
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| 1 | | representative, as such, shall then be substituted
by the | 2 | | Department for such person. If the legal representative fails | 3 | | to
notify the Department of his or her appointment as such | 4 | | legal representative, the
Department may, upon its own motion, | 5 | | substitute such legal representative
in the proceeding pending | 6 | | before the Department for the person who died or
became a | 7 | | person under legal disability.
| 8 | | (Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
| 9 | | (35 ILCS 130/9g new) | 10 | | Sec. 9g. Retailers; reports. Every retailer who is required | 11 | | to procure a license under this Act shall, on or before the | 12 | | 15th day of each calendar month, file a report with the | 13 | | Department, showing the quantity of cigarettes purchased from | 14 | | licensed distributors, secondary distributors, and | 15 | | manufacturer with authority to maintain manufacturer | 16 | | representatives during the preceding calendar month, either | 17 | | within or outside this State, and the quantity of cigarettes | 18 | | sold to consumers or otherwise disposed of during the preceding | 19 | | calendar month. Such reports shall be filed in the form | 20 | | prescribed by the Department and shall contain such other | 21 | | information as the Department may reasonably require. The | 22 | | report shall be filed electronically and be accompanied by | 23 | | appropriate computer generated magnetic media supporting | 24 | | schedule data in the format required by the Department, unless, | 25 | | as provided by rule, the Department grants an exception upon |
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| 1 | | petition of retailer. | 2 | | A certification by the Director of the Department that a | 3 | | report has not been filed, or that information has not been | 4 | | supplied pursuant to the provisions of this Act, shall be prima | 5 | | facie evidence thereof.
| 6 | | (35 ILCS 130/10) (from Ch. 120, par. 453.10)
| 7 | | Sec. 10.
The Department, or any officer or employee | 8 | | designated in writing
by the Director thereof, for the purpose | 9 | | of administering and enforcing the
provisions of this Act, may | 10 | | hold investigations and hearings concerning
any matters | 11 | | covered by this Act, and may examine books, papers, records or
| 12 | | memoranda bearing upon the sale or other disposition of | 13 | | cigarettes by a
distributor, secondary distributor, retailer, | 14 | | manufacturer with authority to maintain manufacturer | 15 | | representatives under Section 4f of this Act, or manufacturer | 16 | | representative, and may issue subpoenas requiring the | 17 | | attendance of a
distributor, secondary distributor, retailer, | 18 | | manufacturer with authority to maintain manufacturer | 19 | | representatives under Section 4f of this Act, or manufacturer | 20 | | representative, or any officer or employee of a distributor, | 21 | | secondary distributor, retailer, manufacturer with authority | 22 | | to maintain manufacturer representatives under Section 4f of | 23 | | this Act, or any person
having knowledge of the facts, and may | 24 | | take testimony and require proof,
and may issue subpoenas duces | 25 | | tecum to compel the production of relevant
books, papers, |
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| 1 | | records and memoranda, for the information of the
Department.
| 2 | | In the conduct of any investigation or hearing provided for | 3 | | by this Act,
neither the Department, nor any officer or | 4 | | employee thereof, shall be bound
by the technical rules of | 5 | | evidence, and no informality in the proceedings
nor in the | 6 | | manner of taking testimony shall invalidate any rule, order,
| 7 | | decision or regulation made, approved or confirmed by the | 8 | | Department.
| 9 | | The Director of Revenue, or any duly authorized officer or | 10 | | employee of
the Department, shall have the power to administer | 11 | | oaths to such persons
required by this Act to give testimony | 12 | | before the said Department.
| 13 | | The books, papers, records and memoranda of the Department, | 14 | | or parts
thereof, may be proved in any hearing, investigation | 15 | | or legal proceeding by
a reproduced copy thereof under the | 16 | | certificate of the Director of Revenue.
Such reproduced copy | 17 | | shall, without further proof, be admitted into
evidence before | 18 | | the Department or in any legal proceeding.
| 19 | | (Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
| 20 | | (35 ILCS 130/11c new) | 21 | | Sec. 11c. Retailers; records. Every retailer who is | 22 | | required to procure a license under this Act, shall keep within | 23 | | Illinois, at his business address identified under Section 4g | 24 | | of this Act, complete and accurate records of cigarettes | 25 | | purchased, sold, or otherwise disposed of, and shall preserve |
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| 1 | | and keep within Illinois at his business address all invoices, | 2 | | sales records, copies of bills of sale, inventory at the close | 3 | | of each period for which a report is required of all cigarettes | 4 | | on hand, and other pertinent papers and documents relating to | 5 | | the purchase, sale, or disposition of cigarettes. All books and | 6 | | records and other papers and documents that are required by | 7 | | this Act to be kept shall be kept in the English language, and | 8 | | shall, at all times during the usual business hours of the day, | 9 | | be subject to inspection by the Department or its duly | 10 | | authorized agents and employees. The Department may adopt rules | 11 | | that establish requirements, including record forms and | 12 | | formats, for records required to be kept and maintained by. | 13 | | For purposes of this Section, "records" means all data | 14 | | maintained by the retailer, including data on paper, microfilm, | 15 | | microfiche or any type of machine sensible data compilation. | 16 | | Those books, records, papers, and documents shall be preserved | 17 | | for a period of at least 3 years after the date of the | 18 | | documents, or the date of the entries appearing in the records, | 19 | | unless the Department, in writing, authorizes their | 20 | | destruction or disposal at an earlier date. At all times during | 21 | | the usual business hours of the day, any duly authorized agent | 22 | | or employee of the Department may enter any place of business | 23 | | of the retailer without a search warrant and may inspect the | 24 | | premises to determine whether any of the provisions of this Act | 25 | | are being violated. If such agent or employee is denied free | 26 | | access or is hindered or interfered with in making such |
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| 1 | | examination as herein provided, the license of the retailer | 2 | | shall be subject to suspension or revocation by the Department.
| 3 | | (35 ILCS 130/23) (from Ch. 120, par. 453.23)
| 4 | | Sec. 23.
Every distributor, secondary distributor, | 5 | | retailer, manufacturer with authority to maintain manufacturer | 6 | | representatives under Section 4f of this Act and their | 7 | | manufacturer representatives, or other person who shall | 8 | | knowingly and wilfully
sell or offer for sale any original | 9 | | package, as defined in this Act,
having affixed thereto any | 10 | | fraudulent, spurious, imitation or counterfeit
stamp, or stamp | 11 | | which has been previously affixed, or affixes a stamp which
has | 12 | | previously been affixed to an original package, or who shall | 13 | | knowingly
and wilfully sell or offer for sale any original | 14 | | package, as defined in
this Act, having imprinted thereon | 15 | | underneath the sealed transparent
wrapper thereof any | 16 | | fraudulent, spurious, imitation or counterfeit tax
imprint, | 17 | | shall be deemed guilty of a Class 2 felony.
| 18 | | (Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
| 19 | | (35 ILCS 130/26) (from Ch. 120, par. 453.26)
| 20 | | Sec. 26.
Whoever acts as a distributor , or secondary | 21 | | distributor , retailer, or manufacturer representative of | 22 | | original packages without having
a license, as required by this | 23 | | Act, shall be guilty of a Class 4 felony.
| 24 | | (Source: P.A. 96-1027, eff. 7-12-10.)
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| 1 | | Section 15. The Illinois Cigarette Use Tax Act is amended | 2 | | by changing Sections 1, 2-10, 3-10, 4d, and 4e as follows:
| 3 | | (35 ILCS 135/1) (from Ch. 120, par. 453.31)
| 4 | | Sec. 1. For the purpose of this Act, unless otherwise | 5 | | required by the
context:
| 6 | | "Use" means the exercise by any person of any right or | 7 | | power over
cigarettes incident to the ownership or possession | 8 | | thereof, other than the
making of a sale thereof in the course | 9 | | of engaging in a business of selling
cigarettes and shall | 10 | | include the keeping or retention of cigarettes for use, except | 11 | | that "use" does not include the use of cigarettes by a | 12 | | not-for-profit research institution conducting tests | 13 | | concerning the health effects of tobacco products, provided the | 14 | | cigarettes are not offered for resale.
| 15 | | "Brand Style" means a variety of cigarettes distinguished | 16 | | by the tobacco used, tar and nicotine content, flavoring used, | 17 | | size of the cigarette, filtration on the cigarette or | 18 | | packaging. | 19 | | "Cigarette" , through December 31, 2012, means any roll for | 20 | | smoking made wholly or in part of tobacco
irrespective of size | 21 | | or shape and whether or not such tobacco is flavored,
| 22 | | adulterated or mixed with any other ingredient, and the wrapper | 23 | | or cover of
which is made of paper or any other substance or | 24 | | material except tobacco.
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| 1 | | "Cigarette", beginning on and after January 1, 2013, means | 2 | | any roll for smoking made wholly or in part of tobacco | 3 | | irrespective of size or shape and whether or not such tobacco | 4 | | is flavored, adulterated or mixed with any other ingredient, | 5 | | and the wrapper or cover of which is made of paper. | 6 | | "Cigarette" beginning on and after January 1, 2013, also | 7 | | means: any roll for smoking made wholly or in part of tobacco | 8 | | labeled as anything other than a cigarette or not bearing a | 9 | | label, if it meets two or more of the following criteria: | 10 | | (1) the product is sold in packs similar to cigarettes; | 11 | | (2) the product is available for sale in cartons of ten | 12 | | packs; | 13 | | (3) the product is sold in soft packs, hard packs, | 14 | | flip-top boxes, clam shells, or other cigarette-type | 15 | | boxes; | 16 | | (4) the product is of a length and diameter found in | 17 | | commercially-manufactured cigarettes; | 18 | | (5) the product has a cellulose acetate or other | 19 | | integrated filter; | 20 | | (6) the product weighs less than three pounds per | 21 | | thousand sticks; | 22 | | (7) the product is marketed or advertised to consumers | 23 | | as a cigarette or cigarette substitute; or | 24 | | (8) other evidence that the product fits within the | 25 | | definition of cigarette. | 26 | | "Contraband cigarettes" means: |
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| 1 | | (a) cigarettes that do not bear a required tax stamp | 2 | | under this Act; | 3 | | (b) cigarettes for which any required federal taxes | 4 | | have not been paid; | 5 | | (c) cigarettes that bear a counterfeit tax stamp; | 6 | | (d) cigarettes that are manufactured, fabricated, | 7 | | assembled, processed, packaged, or labeled by any person | 8 | | other than (i) the owner of the trademark rights in the | 9 | | cigarette brand or (ii) a person that is directly or | 10 | | indirectly authorized by such owner; | 11 | | (e) cigarettes imported into the United States, or | 12 | | otherwise distributed, in violation of the federal | 13 | | Imported Cigarette Compliance Act of 2000 (Title IV of | 14 | | Public Law 106-476); | 15 | | (f) cigarettes that have false manufacturing labels; | 16 | | (g) cigarettes identified in Section 3-10(a)(1) of | 17 | | this Act; or | 18 | | (h) cigarettes that are improperly tax stamped, | 19 | | including cigarettes that bear a tax stamp of another state | 20 | | or taxing jurisdiction. | 21 | | "Person" means any natural individual, firm, partnership, | 22 | | association,
joint stock company, joint adventure, public or | 23 | | private corporation,
however formed, limited liability | 24 | | company, or a receiver, executor,
administrator, trustee, | 25 | | guardian or other representative appointed by order of
any | 26 | | court.
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| 1 | | "Department" means the Department of Revenue.
| 2 | | "Sale" means any transfer, exchange or barter in any manner | 3 | | or by any
means whatsoever for a consideration, and includes | 4 | | and means all sales made
by any person.
| 5 | | "Original Package" means the individual packet, box or | 6 | | other container
whatsoever used to contain and to convey | 7 | | cigarettes to the consumer.
| 8 | | "Distributor" means any and each of the following:
| 9 | | a. Any person engaged in the business of selling | 10 | | cigarettes in this
State who brings or causes to be brought | 11 | | into this State from without this
State any original | 12 | | packages of cigarettes, on which original packages there
is | 13 | | no authorized evidence underneath a sealed transparent | 14 | | wrapper showing
that the tax liability imposed by this Act | 15 | | has been paid or assumed by the
out-of-State seller of such | 16 | | cigarettes, for sale in the course of such
business.
| 17 | | b. Any person who makes, manufactures or fabricates | 18 | | cigarettes in this
State for sale, except a person who | 19 | | makes, manufactures or fabricates
cigarettes for sale to | 20 | | residents incarcerated in penal institutions or resident
| 21 | | patients or a State-operated mental health facility.
| 22 | | c. Any person who makes, manufactures or fabricates | 23 | | cigarettes outside
this State, which cigarettes are placed | 24 | | in original packages contained in
sealed transparent | 25 | | wrappers, for delivery or shipment into this State, and
who | 26 | | elects to qualify and is accepted by the Department as a |
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| 1 | | distributor
under Section 7 of this Act.
| 2 | | "Distributor" does not include any person who transfers | 3 | | cigarettes to a not-for-profit
research institution that | 4 | | conducts tests concerning the
health effects of tobacco | 5 | | products and who does not offer
the cigarettes for resale.
| 6 | | "Distributor" does not include any person who makes a sale | 7 | | of cigarettes to a purchaser for use or consumption, and not | 8 | | for resale. | 9 | | "Distributor maintaining a place of business in this | 10 | | State", or any like
term, means any distributor having or | 11 | | maintaining within this State,
directly or by a subsidiary, an | 12 | | office, distribution house, sales house,
warehouse or other | 13 | | place of business, or any agent operating within this
State | 14 | | under the authority of the distributor or its subsidiary,
| 15 | | irrespective of whether such place of business or agent is | 16 | | located here
permanently or temporarily, or whether such | 17 | | distributor or subsidiary is
licensed to transact business | 18 | | within this State.
| 19 | | "Business" means any trade, occupation, activity or | 20 | | enterprise engaged
in or conducted in this State for the | 21 | | purpose of selling cigarettes.
| 22 | | "Prior Continuous Compliance Taxpayer" means any person | 23 | | who is licensed
under this Act and who, having been a licensee | 24 | | for a continuous period of 5
years, is determined by the | 25 | | Department not to have been either delinquent
or deficient in | 26 | | the payment of tax liability during that period or
otherwise in |
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| 1 | | violation of this Act. Also, any taxpayer who has, as
verified | 2 | | by the Department, continuously complied with the
condition of | 3 | | his bond or other security under provisions of this Act of a
| 4 | | period of 5 consecutive years shall be considered to be a | 5 | | "prior
continuous compliance taxpayer". In calculating the | 6 | | consecutive period of
time described herein for qualification | 7 | | as a "prior continuous compliance
taxpayer", a consecutive | 8 | | period of time of qualifying compliance
immediately prior to | 9 | | the effective date of this amendatory Act of 1987 shall be
| 10 | | credited to any licensee who became licensed on or before the | 11 | | effective date
of this amendatory Act of 1987.
| 12 | | "Secondary distributor" means any person engaged in the | 13 | | business of selling cigarettes who purchases stamped original | 14 | | packages of cigarettes from a licensed distributor under this | 15 | | Act or the Cigarette Tax Act, sells 75% or more of those | 16 | | cigarettes to retailers for resale, and maintains an | 17 | | established business where a substantial stock of cigarettes is | 18 | | available to retailers for resale. | 19 | | "Secondary distributor maintaining a place of business in | 20 | | this State", or any like term, means any secondary distributor | 21 | | having or maintaining within this State, directly or by a | 22 | | subsidiary, an office, distribution house, sales house, | 23 | | warehouse, or other place of business, or any agent operating | 24 | | within this State under the authority of the secondary | 25 | | distributor or its subsidiary, irrespective of whether such | 26 | | place of business or agent is located here permanently or |
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| 1 | | temporarily, or whether such secondary distributor or | 2 | | subsidiary is licensed to transact business within this State. | 3 | | "Stamp" or "stamps" mean the indicia required to be affixed | 4 | | on a pack of cigarettes that evidence payment of the tax on | 5 | | cigarettes under Section 2 of this Act. | 6 | | "Related party" means any person that is associated with | 7 | | any other person because he or she: | 8 | | (a) is an officer or director of a business; or | 9 | | (b) is legally recognized as a partner in business. | 10 | | (Source: P.A. 95-462, eff. 8-27-07; 95-1053, eff. 1-1-10; | 11 | | 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
| 12 | | (35 ILCS 135/3-10)
| 13 | | Sec. 3-10. Cigarette enforcement.
| 14 | | (a) Prohibitions. It is unlawful for any person:
| 15 | | (1) to sell or distribute in this State; to acquire, | 16 | | hold, own, possess,
or
transport, for sale or distribution | 17 | | in this State; or to import, or cause to be
imported into | 18 | | this State for sale or distribution in this State:
| 19 | | (A) any cigarettes the package of which:
| 20 | | (i) bears any statement, label, stamp, | 21 | | sticker, or notice
indicating that the | 22 | | manufacturer did not intend the cigarettes to be
| 23 | | sold, distributed, or used in the United States, | 24 | | including but not
limited to labels stating "For | 25 | | Export Only", "U.S. Tax Exempt",
"For Use Outside |
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| 1 | | U.S.", or similar wording; or
| 2 | | (ii) does not comply with:
| 3 | | (aa) all requirements imposed by or | 4 | | pursuant to
federal law regarding warnings and | 5 | | other information on
packages of cigarettes | 6 | | manufactured, packaged, or imported
for sale, | 7 | | distribution, or use in the United States, | 8 | | including
but not limited to the precise | 9 | | warning labels specified in the
federal | 10 | | Cigarette Labeling and Advertising Act, 15 | 11 | | U.S.C.
1333; and
| 12 | | (bb) all federal trademark and copyright | 13 | | laws;
| 14 | | (B) any cigarettes imported into the United States | 15 | | in violation of
26 U.S.C. 5754 or any other federal | 16 | | law, or implementing federal
regulations;
| 17 | | (C) any cigarettes that such person otherwise | 18 | | knows or has reason
to know the manufacturer did not | 19 | | intend to be sold, distributed, or used in
the United | 20 | | States; or
| 21 | | (D) any cigarettes for which there has not been | 22 | | submitted to the
Secretary of the U.S. Department of | 23 | | Health and Human Services the list or
lists of the | 24 | | ingredients added to tobacco in the manufacture of the
| 25 | | cigarettes required by the federal Cigarette Labeling | 26 | | and Advertising Act,
15 U.S.C. 1335a;
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| 1 | | (2) to alter the package of any cigarettes, prior to | 2 | | sale or distribution
to
the
ultimate consumer, so as to | 3 | | remove, conceal, or obscure:
| 4 | | (A) any statement, label, stamp, sticker, or | 5 | | notice described in
subdivision (a)(1)(A)(i) of this | 6 | | Section;
| 7 | | (B) any health warning that is not specified in, or | 8 | | does not conform
with the requirements of, the federal | 9 | | Cigarette Labeling and Advertising
Act, 15 U.S.C. | 10 | | 1333; or
| 11 | | (3) to affix any stamp required pursuant to this Act to | 12 | | the package of any
cigarettes described in subdivision | 13 | | (a)(1) of this Section or altered in
violation of
| 14 | | subdivision (a)(2).
| 15 | | (b) Documentation. On the first business day of each month, | 16 | | each person
licensed
to affix the State tax stamp to cigarettes | 17 | | shall file with the Department, for
all cigarettes
imported | 18 | | into the United States to which the person has affixed the tax | 19 | | stamp
in the
preceding month:
| 20 | | (1) a copy of:
| 21 | | (A) the permit issued pursuant to the Internal | 22 | | Revenue Code, 26
U.S.C. 5713, to the person importing | 23 | | the cigarettes into the United States
allowing the | 24 | | person to import the cigarettes; and
| 25 | | (B) the customs form containing, with respect to | 26 | | the cigarettes, the
internal revenue tax information |
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| 1 | | required by the U.S. Bureau of Alcohol,
Tobacco and | 2 | | Firearms;
| 3 | | (2) a statement, signed by the person under penalty of | 4 | | perjury, which shall
be treated as confidential by the | 5 | | Department and exempt from disclosure under
the Freedom of | 6 | | Information Act, identifying the brand and brand styles of | 7 | | all such
cigarettes, the quantity of each brand style of | 8 | | such cigarettes, the supplier of such
cigarettes, and the | 9 | | person or persons, if any, to whom such cigarettes have | 10 | | been
conveyed for resale; and a separate statement, signed | 11 | | by the individual under
penalty of perjury, which shall not | 12 | | be treated as confidential or exempt from
disclosure, | 13 | | separately identifying the brands and brand styles of such
| 14 | | cigarettes;
and
| 15 | | (3) a statement, signed by an officer of the | 16 | | manufacturer or importer
under penalty of perjury, | 17 | | certifying that the manufacturer or importer has
complied | 18 | | with:
| 19 | | (A) the package health warning and ingredient | 20 | | reporting
requirements of the federal Cigarette | 21 | | Labeling and Advertising Act, 15
U.S.C. 1333 and 1335a, | 22 | | with respect to such cigarettes; and
| 23 | | (B) the provisions of Exhibit T of the Master | 24 | | Settlement Agreement
entered in
the case of People of | 25 | | the State of Illinois v. Philip Morris, et al. (Circuit
| 26 | | Court of Cook County, No. 96-L13146), including a |
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| 1 | | statement
indicating whether the manufacturer is, or | 2 | | is not, a participating tobacco
manufacturer within | 3 | | the meaning of Exhibit T.
| 4 | | (c) Administrative sanctions.
| 5 | | (1) Upon finding that a distributor, secondary | 6 | | distributor, retailer, or a person has committed any of the | 7 | | acts
prohibited by
subsection
(a), knowing or having reason | 8 | | to know that he or she has done so, or upon finding that a | 9 | | distributor or person has failed
to comply
with any | 10 | | requirement of subsection (b), the Department may revoke or | 11 | | suspend
the
license or licenses of any
distributor , | 12 | | retailer, or secondary distributor pursuant to the | 13 | | procedures set forth in Section 6 and impose on the
| 14 | | distributor, secondary distributor, retailer, or person, a | 15 | | civil penalty in an amount not to exceed the greater of | 16 | | 500% of
the
retail value of the cigarettes involved or | 17 | | $5,000.
| 18 | | (2) Cigarettes that are acquired, held, owned, | 19 | | possessed, transported in,
imported into, or sold or | 20 | | distributed in this State in violation of this
Section | 21 | | shall be deemed contraband under this Act and are subject | 22 | | to seizure
and forfeiture as provided in this Act, and all | 23 | | such cigarettes seized and
forfeited shall be destroyed or | 24 | | maintained and used in an undercover capacity. Such | 25 | | cigarettes shall be deemed contraband
whether the | 26 | | violation of this Section is knowing or otherwise.
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| 1 | | (d) Unfair trade practices. In addition to any other | 2 | | penalties provided for in this Act, a violation of subsection | 3 | | (a) or subsection
(b) of this Section shall constitute an | 4 | | unlawful practice as provided in the
Consumer Fraud and | 5 | | Deceptive Business Practices Act.
| 6 | | (d-1) Retailers who are licensed under Section 4g of the | 7 | | Cigarette Tax Act and secondary distributors shall not be | 8 | | liable under subsections (c)(1) and (d) of this Section for | 9 | | unknowingly possessing, selling, or distributing to consumers | 10 | | or users cigarettes identified in subsection (a)(1) of this | 11 | | Section if the cigarettes possessed, sold, or distributed by | 12 | | the licensed retailer were obtained from a distributor or | 13 | | secondary distributor licensed under this Act or the Cigarette | 14 | | Tax Act. | 15 | | (d-2) Criminal Penalties. A distributor, secondary | 16 | | distributor, retailer. or person who violates subsection (a), | 17 | | or a distributor, secondary distributor, or person who violates | 18 | | subsection (b) of this Section shall be guilty of a Class 4 | 19 | | felony. | 20 | | (e) Unfair cigarette sales. For purposes of the Trademark | 21 | | Registration and
Protection Act and the Counterfeit Trademark | 22 | | Act, cigarettes imported or
reimported into the United States | 23 | | for sale or distribution under any trade
name, trade dress, or | 24 | | trademark that is the same as, or is confusingly similar
to, | 25 | | any trade name, trade dress, or trademark used for cigarettes | 26 | | manufactured
in the United States for sale or distribution in |
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| 1 | | the United States shall be
presumed to have been purchased | 2 | | outside of the ordinary channels of trade.
| 3 | | (f) General provisions.
| 4 | | (1) This Section shall be enforced by the Department; | 5 | | provided that, at
the request of the Director of Revenue or | 6 | | the Director's duly authorized agent,
the State police and | 7 | | all local police authorities shall enforce the provisions
| 8 | | of this Section. The Attorney General has concurrent power | 9 | | with the State's
Attorney of any county to enforce this | 10 | | Section.
| 11 | | (2) For the purpose of enforcing this Section, the | 12 | | Director of Revenue and
any agency to which the Director | 13 | | has delegated enforcement
responsibility pursuant to | 14 | | subdivision (f)(1) may request information from any
State | 15 | | or local agency and may share information with and request | 16 | | information
from any federal agency and any agency of any | 17 | | other state or any local agency
of any other state.
| 18 | | (3) In addition to any other remedy provided by law, | 19 | | including
enforcement as provided in subdivision (f) | 20 | | (a) (1), any person may bring an action
for appropriate | 21 | | injunctive or other equitable relief for a violation of | 22 | | this
Section; actual damages, if any, sustained by reason | 23 | | of the violation; and, as
determined by the court, interest | 24 | | on the damages from the date of the
complaint, taxable | 25 | | costs, and reasonable attorney's fees. If the trier of fact
| 26 | | finds that the violation is flagrant, it may increase |
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| 1 | | recovery to an amount not
in excess of 3 times the actual | 2 | | damages sustained by reason of the violation.
| 3 | | (g) Definitions. As used in this Section:
| 4 | | "Importer" means that term as defined in 26 U.S.C. 5702(1).
| 5 | | "Package" means that term as defined in 15 U.S.C. 1332(4).
| 6 | | (h) Applicability.
| 7 | | (1) This Section does not apply to:
| 8 | | (A) cigarettes allowed to be imported or brought | 9 | | into the United
States for personal use; and
| 10 | | (B) cigarettes sold or intended to be sold as | 11 | | duty-free merchandise
by a duty-free sales enterprise | 12 | | in accordance with the provisions of 19
U.S.C. 1555(b) | 13 | | and any implementing regulations; except that this | 14 | | Section
shall apply to any such cigarettes that are | 15 | | brought back into the customs
territory for resale | 16 | | within the customs territory.
| 17 | | (2) The penalties provided in this Section are in | 18 | | addition to any other
penalties imposed under other | 19 | | provision of law.
| 20 | | (Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10; | 21 | | 96-1027, eff. 7-12-10.)
| 22 | | (35 ILCS 135/4d) | 23 | | Sec. 4d. Sales of cigarettes to and by retailers. In-state | 24 | | makers, manufacturers, or fabricators licensed as distributors | 25 | | under Section 4 of this Act and out-of-state makers, |
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| 1 | | manufacturers, or fabricators holding permits under Section 7 | 2 | | of this Act may not sell original packages of cigarettes to | 3 | | retailers. A retailer who is licensed under Section 4g of the | 4 | | Cigarette Tax Act may sell only original packages of cigarettes | 5 | | obtained from licensed secondary distributors or licensed | 6 | | distributors other than in-state makers, manufacturers, or | 7 | | fabricators licensed as distributors under Section 4 of this | 8 | | Act and out-of-state makers, manufacturers, or fabricators | 9 | | holding permits under Section 7 of this Act.
| 10 | | (Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.) | 11 | | (35 ILCS 135/4e) | 12 | | Sec. 4e. Sales of cigarettes to and by secondary | 13 | | distributors. In-state makers, manufacturers, and fabricators | 14 | | licensed as distributors under Section 4 of this Act and | 15 | | out-of-state makers, manufacturers, and fabricators holding | 16 | | permits under Section 7 of this Act may not sell original | 17 | | packages of cigarettes to secondary distributors. A secondary | 18 | | distributor may sell only original packages of cigarettes | 19 | | obtained from licensed distributors other than in-state | 20 | | makers, manufacturers, or fabricators licensed as distributors | 21 | | under Section 4 of this Act and out-of-state makers, | 22 | | manufacturers, or fabricators holding permits under Section 7 | 23 | | of this Act. Secondary distributors may sell cigarettes to | 24 | | Illinois retailers who are licensed under Section 4g of the | 25 | | Cigarette Tax Act for resale, and are also authorized to make |
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| 1 | | retail sales of cigarettes at the location on the secondary | 2 | | distributor's license as long as the secondary distributor | 3 | | obtains a license under Section 4g of the Cigarette Tax Act and | 4 | | sells 75% or more of the cigarettes sold at such location to | 5 | | retailers who are licensed under Section 4g of the Cigarette | 6 | | Tax Act for resale. | 7 | | All sales by secondary distributors to Illinois retailers | 8 | | who are licensed under Section 4g of the Cigarette Tax Act must | 9 | | be made at the location on the secondary distributor's license. | 10 | | Retailers who are issued a license under Section 4g of the | 11 | | Cigarette Tax Act must take possession of all cigarettes sold | 12 | | by the secondary distributor at the secondary distributor's | 13 | | licensed address. Secondary distributors may not make | 14 | | deliveries of cigarettes to Illinois retailers who are licensed | 15 | | under Section 4g of the Cigarette Tax Act . | 16 | | Secondary distributors may not file a claim for credit or | 17 | | refund with the State under Section 14a of this Act.
| 18 | | (Source: P.A. 96-1027, eff. 7-12-10.) | 19 | | Section 20. The Illinois Tobacco Products Tax Act is | 20 | | amended by changing Sections 10-5, 10-20, 10-25, 10-35, and | 21 | | 10-50 and by adding Sections 10-21, 10-22, 10-36, and 10-53 as | 22 | | follows:
| 23 | | (35 ILCS 143/10-5)
| 24 | | Sec. 10-5. Definitions. For purposes of this Act:
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| 1 | | "Business" means any trade, occupation, activity, or | 2 | | enterprise engaged
in, at any location whatsoever, for the | 3 | | purpose of selling tobacco products.
| 4 | | "Cigarette" has the meaning ascribed to the term in Section | 5 | | 1 of the
Cigarette Tax Act.
| 6 | | "Correctional Industries program" means a program run by a | 7 | | State penal
institution in which residents of the penal | 8 | | institution produce tobacco
products for sale to persons | 9 | | incarcerated in penal institutions or resident
patients of a | 10 | | State operated mental health facility.
| 11 | | "Department" means the Illinois Department of Revenue.
| 12 | | "Distributor" means any of the following:
| 13 | | (1) Any manufacturer or wholesaler in this State | 14 | | engaged in the business
of selling tobacco products who | 15 | | sells, exchanges, or distributes tobacco
products to | 16 | | retailers or consumers in this State.
| 17 | | (2) Any manufacturer or wholesaler engaged
in
the | 18 | | business of selling tobacco products from without this | 19 | | State who sells,
exchanges, distributes,
ships, or | 20 | | transports tobacco products to retailers or consumers | 21 | | located in
this State,
so long as that manufacturer or | 22 | | wholesaler has or maintains within this State,
directly or | 23 | | by subsidiary, an office, sales house, or other place of | 24 | | business,
or any agent or other representative operating | 25 | | within this State under the
authority of the person or | 26 | | subsidiary, irrespective of whether the place of
business |
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| 1 | | or agent or other representative is located here | 2 | | permanently or
temporarily.
| 3 | | (3) Any retailer who receives tobacco products on which | 4 | | the tax has not
been or
will not be paid by another | 5 | | distributor.
| 6 | | "Distributor" does not include any person, wherever | 7 | | resident or located, who
makes, manufactures, or fabricates | 8 | | tobacco products as part of a Correctional
Industries program | 9 | | for sale to residents incarcerated in penal institutions or
| 10 | | resident patients of a State operated mental health facility.
| 11 | | "Manufacturer" means any person, wherever resident or | 12 | | located, who
manufactures and sells tobacco products, except a | 13 | | person who makes,
manufactures, or fabricates tobacco products | 14 | | as a part of a Correctional
Industries program for sale to | 15 | | persons incarcerated in penal institutions or
resident | 16 | | patients of a State operated mental health facility.
| 17 | | "Person" means any natural individual, firm, partnership, | 18 | | association, joint
stock company, joint venture, limited | 19 | | liability company, or public or private
corporation, however | 20 | | formed, or a receiver, executor, administrator, trustee,
| 21 | | conservator, or other representative appointed by order of any | 22 | | court.
| 23 | | "Place of business" means and includes any place where | 24 | | tobacco products
are sold or where tobacco products are | 25 | | manufactured, stored, or kept for
the purpose of sale or | 26 | | consumption, including any vessel, vehicle, airplane,
train, |
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| 1 | | or vending machine.
| 2 | | "Retailer" means any person in this State engaged in the | 3 | | business of selling
tobacco products to consumers in this | 4 | | State, regardless of quantity or number
of sales.
| 5 | | "Sale" means any transfer, exchange, or barter in any | 6 | | manner or by any means
whatsoever for a consideration and | 7 | | includes all sales made by
persons.
| 8 | | "Tobacco products" means any cigars; cheroots; stogies; | 9 | | periques; granulated,
plug cut, crimp cut, ready rubbed, and | 10 | | other smoking tobacco; snuff or snuff
flour; cavendish; plug | 11 | | and twist tobacco; fine-cut and other chewing tobaccos;
shorts; | 12 | | refuse scraps, clippings, cuttings, and sweeping of tobacco; | 13 | | and
other kinds and forms of tobacco, prepared in such manner | 14 | | as to be suitable for
chewing or smoking in a pipe or | 15 | | otherwise, or both for chewing and smoking; but
does not | 16 | | include cigarettes as defined in Section 1 of the Cigarette Tax | 17 | | Act or tobacco purchased for the manufacture of
cigarettes by | 18 | | cigarette distributors and manufacturers defined in the
| 19 | | Cigarette Tax Act and persons who make, manufacture, or | 20 | | fabricate
cigarettes as a part of a Correctional Industries | 21 | | program for sale to
residents incarcerated in penal | 22 | | institutions or resident patients of a
State operated mental | 23 | | health facility.
| 24 | | "Wholesale price" means the established list price for | 25 | | which a manufacturer
sells tobacco products to a distributor, | 26 | | before the allowance of any discount,
trade allowance, rebate, |
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| 1 | | or other reduction.
In the absence of such an established list | 2 | | price, the manufacturer's invoice
price at which the | 3 | | manufacturer sells the tobacco product to unaffiliated
| 4 | | distributors, before any discounts, trade allowances, rebates, | 5 | | or other
reductions, shall be presumed to be the wholesale | 6 | | price.
| 7 | | "Wholesaler" means any person, wherever resident or | 8 | | located, engaged in the
business of selling tobacco products to | 9 | | others for the purpose of resale.
| 10 | | (Source: P.A. 92-231, eff. 8-2-01.)
| 11 | | (35 ILCS 143/10-20)
| 12 | | Sec. 10-20. Distributor's Licenses. It shall be unlawful | 13 | | for any person to engage in
business as a distributor of | 14 | | tobacco products within the
meaning
of this Act without first | 15 | | having obtained a license to do so from the
Department. | 16 | | Application for that license shall be made to the Department in | 17 | | a
form prescribed and furnished by the Department. Each | 18 | | applicant for a license
shall furnish to the Department on a | 19 | | form, signed and verified by the
applicant, the following | 20 | | information:
| 21 | | (1) The name of the applicant.
| 22 | | (2) The address of the location at which the applicant | 23 | | proposes to engage
in business as a distributor of tobacco | 24 | | products.
| 25 | | (3) Other information the Department may reasonably |
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| 1 | | require.
| 2 | | Except as otherwise provided in this Section, every | 3 | | applicant who is required
to procure a distributor's license | 4 | | shall file with his or her application a
joint and several | 5 | | bond. The bond shall be executed to the Department of
Revenue, | 6 | | with good and sufficient surety or sureties residing or | 7 | | licensed to do
business within the State of Illinois, | 8 | | conditioned upon the true and faithful
compliance by the | 9 | | licensee with all of the provisions of this Act. The
Department | 10 | | shall fix the amount of the bond for each applicant, taking | 11 | | into
consideration the amount of money expected to become due | 12 | | from the applicant
under this Act. The amount of bond required | 13 | | by the Department shall be an
amount that, in its opinion, will | 14 | | protect the State of Illinois against failure
to pay the amount | 15 | | that may become due from the applicant under this Act, but
the | 16 | | amount of the security required by the Department shall not | 17 | | exceed 3 times
the amount of the applicant's average monthly | 18 | | tax liability, or $50,000,
whichever amount is lower. The bond, | 19 | | a reissue, or a substitute shall be kept
in full force and | 20 | | effect during the entire period covered by the license. A
| 21 | | separate application for license shall be made, and bond filed,
| 22 | | for each place of business at which a person who is required to | 23 | | procure a
distributor's license proposes to engage in business | 24 | | as a distributor under this Act.
| 25 | | The Department, upon receipt of an application and bond in | 26 | | proper form,
shall issue to the applicant a license, in a form |
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| 1 | | prescribed by the
Department, which shall permit the applicant | 2 | | to whom it is issued
to engage in business as a distributor at | 3 | | the place shown on his or her
application. The license shall be | 4 | | issued by the Department without charge
or cost to the | 5 | | applicant. No license issued under this Act is
transferable or | 6 | | assignable. The license shall be conspicuously displayed
in the | 7 | | place of business conducted by the licensee under the
license.
| 8 | | The bonding requirement in this Section does not apply to | 9 | | an applicant
for a distributor's license who is already bonded | 10 | | under the Cigarette
Tax Act or the Cigarette Use Tax Act.
| 11 | | Licenses issued by the Department under this Act shall be valid | 12 | | for a period
not to exceed one year after issuance unless | 13 | | sooner revoked, canceled, or
suspended as provided in this Act.
| 14 | | No license shall be issued to any person who is in default | 15 | | to the State
of Illinois for moneys due under this Act or any | 16 | | other tax Act administered
by the Department.
| 17 | | The Department may, in its discretion, upon application, | 18 | | authorize the
payment of the tax imposed under Section 10-10 by | 19 | | any distributor or
manufacturer not otherwise subject to the | 20 | | tax imposed under this Act who, to
the satisfaction of the | 21 | | Department, furnishes adequate security to ensure
payment of | 22 | | the tax. The distributor or manufacturer shall be issued, | 23 | | without
charge, a license to remit the tax. When so authorized, | 24 | | it shall be the duty
of the distributor or manufacturer to | 25 | | remit the tax imposed upon the wholesale
price of tobacco | 26 | | products sold or otherwise disposed of to retailers or
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| 1 | | consumers located in this State, in the
same manner and subject | 2 | | to the same requirements as any other
distributor or
| 3 | | manufacturer licensed under this Act.
| 4 | | The Department may revoke, suspend, or cancel the license | 5 | | of a distributor
of roll-your-own tobacco (as that term is used | 6 | | in Section 10 of the Tobacco
Product
Manufacturers' Escrow Act) | 7 | | under this Act if the tobacco product manufacturer,
as
defined | 8 | | in Section 10 of the Tobacco Product Manufacturers' Escrow Act, | 9 | | that
made or sold the roll-your-own tobacco has failed to | 10 | | become a participating
manufacturer, as defined in subdivision | 11 | | (a)(1) of Section 15 of the Tobacco
Product Manufacturers' | 12 | | Escrow Act, or has failed to create a qualified escrow
fund for | 13 | | any roll-your-own tobacco manufactured by the tobacco product
| 14 | | manufacturer
and sold in this State or otherwise failed to | 15 | | bring itself into compliance with
subdivision (a)(2) of Section | 16 | | 15
of the Tobacco Product Manufacturers' Escrow Act.
| 17 | | Any person aggrieved by any decision of the Department | 18 | | under this Section
may, within 20 days after notice of that | 19 | | decision, protest and request a
hearing, whereupon the | 20 | | Department must give notice to that person of the time
and | 21 | | place fixed for the hearing and must hold a hearing in | 22 | | conformity with
the provisions of this Act and then issue its | 23 | | final administrative decision in
the matter to that person. In | 24 | | the absence of such a protest within 20 days,
the Department's | 25 | | decision becomes final without any further determination
being | 26 | | made or notice given.
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| 1 | | (Source: P.A. 92-231, eff. 8-2-01; 92-737, eff. 7-25-02.)
| 2 | | (35 ILCS 143/10-21 new) | 3 | | Sec. 10-21. Retailer's license. Beginning on January 1, | 4 | | 2013, no person may engage in business as a retailer of tobacco | 5 | | products in this State without first having obtained a license | 6 | | from the Department. Application for license shall be made to | 7 | | the Department on a form furnished and prescribed by the | 8 | | Department. Each applicant for a license under this Section | 9 | | shall furnish to the Department on the form signed and verified | 10 | | by the applicant the following information: | 11 | | (1) the name and address of the applicant; | 12 | | (2) the address of the location at which the applicant | 13 | | proposes to engage in business as a retailer of tobacco | 14 | | products in this State; | 15 | | (3) such other additional information as the Department may | 16 | | lawfully require by its rules and regulations. | 17 | | The annual license fee payable to the Department for each | 18 | | retailer's license shall be $250. The fee will be deposited | 19 | | into the Tax Compliance and Administration Fund and used | 20 | | towards the cost of retail inspections. Each applicant for | 21 | | license shall pay such fee to the Department at the time of | 22 | | submitting his application for license to the Department. The | 23 | | Department may, by rule, require an applicant for a license | 24 | | under this Section to electronically file and pay the | 25 | | application and fee. |
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| 1 | | Every applicant who is required to procure a retailer's | 2 | | license shall file with his application a joint and several | 3 | | bond. Such bond shall be executed to the Department of Revenue, | 4 | | with good and sufficient surety or sureties residing or | 5 | | licensed to do business within the State of Illinois, in an | 6 | | amount of not less than $2,500, conditioned upon the true and | 7 | | faithful compliance by the licensee with all of the provisions | 8 | | of this Act. Such bond, or a reissue thereof, or a substitute | 9 | | therefore, shall be kept in effect during the entire period | 10 | | covered by the license. | 11 | | A separate application for license shall be made, a | 12 | | separate annual license fee paid and a separate bond filed, for | 13 | | each place of business at which a person who is required to | 14 | | procure a retailer's license under this Section proposes to | 15 | | engage in business as a retailer in Illinois under this Act. | 16 | | The following are ineligible to receive a retailer's | 17 | | license under this Act: | 18 | | (1) a person who is not of good character and | 19 | | reputation in the community in which he resides; | 20 | | (2) a person who has been convicted of a felony under | 21 | | any Federal or State law, if the Department, after | 22 | | investigation and a hearing, if requested by the applicant, | 23 | | determines that such person has not been sufficiently | 24 | | rehabilitated to warrant the public trust; and | 25 | | (3) a corporation, if any officer, manager or director | 26 | | 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 | 3 | | for any reason. | 4 | | The Department, upon receipt of an application, license fee | 5 | | and bond in proper form, from a person who is eligible to | 6 | | receive a retailer's license under this Act, shall issue to | 7 | | such applicant a license in form as prescribed by the | 8 | | Department, which license shall permit the applicant to which | 9 | | it is issued to engage in business as a retailer under this Act | 10 | | at the place shown in his application. All licenses issued by | 11 | | the Department under this Section shall be valid for a period | 12 | | not to exceed one year after issuance unless sooner revoked, | 13 | | canceled or suspended as provided in this Act. No license | 14 | | issued under this Section is transferable or assignable. Such | 15 | | license shall be conspicuously displayed in the place of | 16 | | business conducted by the licensee in Illinois under such | 17 | | license. A person who obtains a license as a retailer who | 18 | | ceases to do business as specified in the license, or who never | 19 | | commenced business, or who obtains a distributor's license, or | 20 | | whose license is suspended or revoked, shall immediately | 21 | | surrender the license to the Department. The Department shall | 22 | | not issue a license to a retailer unless the retailer is also | 23 | | validly registered under the Retailers Occupation Tax Act. | 24 | | A retailer as defined under this Act need not obtain an | 25 | | additional license under this Act, but shall be deemed to be | 26 | | sufficiently licensed by virtue of his being properly licensed |
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| 1 | | as a retailer under Section 4g of the Cigarette Tax Act. | 2 | | Any person aggrieved by any decision of the Department | 3 | | under this subsection may, within 20 days after notice of the | 4 | | decision, protest and request a hearing. Upon receiving a | 5 | | request for a hearing, the Department shall give notice to the | 6 | | person requesting the hearing of the time and place fixed for | 7 | | the hearing and shall hold a hearing in conformity with the | 8 | | provisions of this Act and then issue its final administrative | 9 | | decision in the matter to that person. In the absence of a | 10 | | protest and request for a hearing within 20 days, the | 11 | | Department's decision shall become final without any further | 12 | | determination being made or notice given. | 13 | | (35 ILCS 143/10-22 new) | 14 | | Sec. 10-22. Purchases of tobacco products by licensed | 15 | | retailers. A person who possesses a retailer's license under | 16 | | Section 10-21 of this Act shall obtain tobacco products for | 17 | | sale only from a licensed distributor.
| 18 | | (35 ILCS 143/10-25)
| 19 | | Sec. 10-25. License actions. | 20 | | (a) The Department may, after notice and a hearing,
revoke, | 21 | | cancel, or suspend the license of any distributor or retailer | 22 | | who violates any of
the provisions of this Act. The notice | 23 | | shall specify the alleged violation or
violations upon which | 24 | | the revocation, cancellation, or suspension proceeding is
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| 1 | | based.
| 2 | | (b) The Department may revoke, cancel, or suspend the | 3 | | license of any
distributor for a violation of the Tobacco | 4 | | Product Manufacturers' Escrow
Enforcement Act as provided in | 5 | | Section 20 of that Act.
| 6 | | (c) The Department shall suspend for 7 days the license of
| 7 | | a retailer for a first violation of the Sale of Tobacco to
| 8 | | Minors Act, as provided in Section 3 of that Act. | 9 | | The Department shall suspend for 30 days the license of a
| 10 | | retailer for a second violation of the Sale of Tobacco to | 11 | | Minors Act, as provided in Section 3 of that Act. | 12 | | The Department shall revoke the license of a retailer for a
| 13 | | third or subsequent violation of the Sale of Tobacco to Minors | 14 | | Act, as provided in Section 3 of that Act. | 15 | | The Department may, by application to any circuit court, | 16 | | obtain an injunction
restraining any person who engages in | 17 | | business as a distributor of tobacco
products without a license | 18 | | (either because his or her license has been revoked,
canceled, | 19 | | or suspended or because of a failure to obtain a license in the | 20 | | first
instance) from engaging in that business until that | 21 | | person, as if that person
were a new applicant for a license, | 22 | | complies with all of the conditions,
restrictions, and | 23 | | requirements of Section 10-20 of this Act and qualifies for
and | 24 | | obtains a license. Refusal or neglect to obey the order of the | 25 | | court may
result in punishment for contempt.
| 26 | | (Source: P.A. 92-737, eff. 7-25-02.)
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| 1 | | (35 ILCS 143/10-35)
| 2 | | Sec. 10-35. Record keeping. | 3 | | (a) Every distributor, as defined in Section 10-5,
shall | 4 | | keep complete and accurate records of tobacco products held, | 5 | | purchased,
manufactured, brought in or caused to be brought in | 6 | | from without the State, and
tobacco products sold, or otherwise | 7 | | disposed of, and shall preserve and keep
all invoices, bills of | 8 | | lading, sales records, and copies of bills
of sale, the | 9 | | wholesale price for tobacco products sold or otherwise disposed
| 10 | | of, an inventory of tobacco products prepared as of December 31 | 11 | | of each year or
as of the last day of the distributor's fiscal | 12 | | year if he or she files federal
income tax returns on the basis | 13 | | of a fiscal year, and other pertinent papers
and documents | 14 | | relating to the manufacture, purchase, sale, or disposition of
| 15 | | tobacco products. Every sales invoice issued by a licensed | 16 | | distributor to a retailer in this State shall contain the | 17 | | distributor's Tobacco Products License number. | 18 | | (b) Every retailer, as defined in Section 10-5, shall keep | 19 | | within Illinois, at his or her licensed address, complete and | 20 | | accurate records of tobacco products held, purchased, sold, or | 21 | | otherwise disposed of, and shall preserve and keep all | 22 | | invoices, bills of lading, sales records, and copies of bills | 23 | | of sale, returns and other pertinent papers and documents | 24 | | relating to the purchase, sale, or disposition of tobacco | 25 | | products. |
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| 1 | | (c) Books, records, papers, and documents that are
required | 2 | | by this Act to be kept shall, at all times during the usual | 3 | | business
hours of the day, be subject to inspection by the | 4 | | Department or its duly
authorized agents and employees. The | 5 | | books, records, papers, and documents for
any period with | 6 | | respect to which the Department is authorized to issue a notice
| 7 | | of tax liability shall be preserved until the expiration of | 8 | | that period.
| 9 | | (Source: P.A. 89-21, eff. 6-6-95.)
| 10 | | (35 ILCS 143/10-36 new) | 11 | | Sec. 10-36. Proof of payment of tax imposed by this Act. | 12 | | Every licensed distributor of tobacco products in this State is | 13 | | required to show proof of the tax having been paid as required | 14 | | by this Act by displaying its Tobacco Products License number | 15 | | on every sales invoice issued to a retailer in this State. No | 16 | | retailer shall possess tobacco products without either a proper | 17 | | invoice indicating that the tobacco products tax was paid by a | 18 | | distributor for the tobacco products in the retailer's | 19 | | possession or other proof that the tax was paid by the retailer | 20 | | if it has purchased tobacco products on which tax has not been | 21 | | paid as required by this Act. Failure to comply with the | 22 | | provisions of this paragraph may be grounds for revocation of a | 23 | | distributor's or retailer's license in accordance with Section | 24 | | 10-25 of this Act or Section 6 of the Cigarette Tax Act. In | 25 | | addition, the Department may impose a civil penalty not to |
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| 1 | | exceed $1000 for each violation, which shall be deposited into | 2 | | the Tax Compliance and Administration Fund.
| 3 | | (35 ILCS 143/10-50)
| 4 | | Sec. 10-50. Violations and penalties. When the amount due | 5 | | is under $300,
any distributor who fails to file a return, | 6 | | willfully wilfully fails or refuses to
make any payment to the | 7 | | Department of the tax imposed by this Act, or files
a | 8 | | fraudulent return, or any officer or agent of a corporation | 9 | | engaged in the
business of distributing tobacco products to | 10 | | retailers and consumers
located in this State who signs a | 11 | | fraudulent
return filed on behalf of the corporation, or any | 12 | | accountant or other agent
who knowingly enters false | 13 | | information on the return of any taxpayer under this
Act is | 14 | | guilty of a Class 4 felony.
| 15 | | Any person who violates any provision of Sections Section | 16 | | 10-20 , 10-21, and 10-22 of this Act, fails
to keep books and | 17 | | records as required under this Act, or willfully wilfully | 18 | | violates a
rule or regulation of the Department for the | 19 | | administration and enforcement of
this Act is guilty of a Class | 20 | | 4 felony. A person commits a separate offense on
each day that | 21 | | he or she engages in business in violation of Sections Section | 22 | | 10-20 , 10-21, and 10-22 of
this Act.
| 23 | | Any person who violates any provision of Sections 10 20, | 24 | | 10-21 and 10-22 of this Act, fails to keep books and records as | 25 | | required under this Act, or willfully violates a rule or |
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| 1 | | regulation of the Department for the administration and | 2 | | enforcement of this Act is guilty of a business offense and may | 3 | | be fined up to $5000. A person commits a separate offense on | 4 | | each day that he or she engages in business in violation of | 5 | | Sections 10 20, 10-21 and 10-22 of this Act. | 6 | | When the amount due is under $300, any person who accepts | 7 | | money that is due
to the Department under this Act from a | 8 | | taxpayer for the purpose of acting as
the taxpayer's agent to | 9 | | make the payment to the Department, but who fails to
remit the | 10 | | payment to the Department when due, is guilty of a Class 4 | 11 | | felony.
| 12 | | When the amount due is $300 or more, any distributor who | 13 | | files,
or causes to be filed, a fraudulent return, or any | 14 | | officer or agent of a
corporation engaged in the business of | 15 | | distributing tobacco products
to retailers and consumers | 16 | | located in this State who files or causes to be
filed or signs | 17 | | or causes
to be signed a fraudulent return filed on behalf of | 18 | | the corporation, or
any accountant or other agent who knowingly | 19 | | enters false information on
the return of any taxpayer under | 20 | | this Act is guilty of a Class 3 felony.
| 21 | | When the amount due is $300 or more, any person engaged in | 22 | | the business
of distributing tobacco products to retailers and | 23 | | consumers located in this
State who fails to file a return,
| 24 | | willfully wilfully fails or refuses to make any payment to the | 25 | | Department of the tax
imposed by this Act, or accepts money | 26 | | that is due to the Department under
this Act from a taxpayer |
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| 1 | | for the purpose of acting as the taxpayer's agent to
make | 2 | | payment to the Department but fails to remit such payment to | 3 | | the
Department when due is guilty of a Class 3 felony.
| 4 | | When the amount due is under $300, any retailer who fails | 5 | | to file a return, willfully fails or refuses to make any | 6 | | payment to the Department of the tax imposed by this Act, or | 7 | | files a fraudulent return, or any officer or agent of a | 8 | | corporation engaged in the retail business of selling tobacco | 9 | | products to purchasers of tobacco products for use and | 10 | | consumption located in this State who signs a fraudulent return | 11 | | filed on behalf of the corporation, or any accountant or other | 12 | | agent who knowingly enters false information on the return of | 13 | | any taxpayer under this Act is guilty of a Class A misdemeanor | 14 | | for a first offense and a Class 4 felony for each subsequent | 15 | | offense. | 16 | | When the amount due is $300 or more, any retailer who fails | 17 | | to file a return, willfully fails or refuses to make any | 18 | | payment to the Department of the tax imposed by this Act, or | 19 | | files a fraudulent return, or any officer or agent of a | 20 | | corporation engaged in the retail business of selling tobacco | 21 | | products to purchasers of tobacco products for use and | 22 | | consumption located in this State who signs a fraudulent return | 23 | | filed on behalf of the corporation, or any accountant or other | 24 | | agent who knowingly enters false information on the return of | 25 | | any taxpayer under this Act is guilty of a Class 4 felony. | 26 | | Any person whose principal place of business is in this |
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| 1 | | State and
who is charged with a violation under this Section | 2 | | shall be
tried in the county where his or her principal place | 3 | | of business is
located unless he or she asserts a right to be | 4 | | tried in another venue.
If the taxpayer does not have his or | 5 | | her principal place of business
in this State, however, the | 6 | | hearing must be held in Sangamon County unless
the taxpayer | 7 | | asserts a right to be tried in another venue.
| 8 | | Any taxpayer or agent of a taxpayer who with the intent to | 9 | | defraud
purports to make a payment due to the Department by | 10 | | issuing or delivering a
check or other order upon a real or | 11 | | fictitious depository for the payment
of money, knowing that it | 12 | | will not be paid by the depository, is
guilty of a deceptive | 13 | | practice in violation of Section 17-1 of the Criminal
Code of | 14 | | 1961.
| 15 | | A prosecution for a violation described in this Section may | 16 | | be commenced
within 3 years after the commission of the act | 17 | | constituting the violation.
| 18 | | (Source: P.A. 92-231, eff. 8-2-01.)
| 19 | | (35 ILCS 143/10-53 new) | 20 | | Sec. 10-53. Acting as a retailer of tobacco products | 21 | | without a license. Any person who knowingly acts as a retailer | 22 | | of tobacco products in this State without first having obtained | 23 | | a license to do so in compliance with Section 10-21 of this Act | 24 | | or a license in compliance with Section 4g of the Cigarette Tax | 25 | | Act shall be guilty of a Class 4 felony. Each day such person |
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| 1 | | operates as a retailer without a license constitutes a separate | 2 | | offense.
| 3 | | Section 99. Effective date. This Act takes effect July 1, | 4 | | 2013.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 20 ILCS 2505/2505-380 | was 20 ILCS 2505/39b47 | | 4 | | 35 ILCS 130/1 | from Ch. 120, par. 453.1 | | 5 | | 35 ILCS 130/3-10 | | | 6 | | 35 ILCS 130/4d | | | 7 | | 35 ILCS 130/4e | | | 8 | | 35 ILCS 130/4f | | | 9 | | 35 ILCS 130/4g new | | | 10 | | 35 ILCS 130/4h new | | | 11 | | 35 ILCS 130/6 | from Ch. 120, par. 453.6 | | 12 | | 35 ILCS 130/7 | from Ch. 120, par. 453.7 | | 13 | | 35 ILCS 130/8 | from Ch. 120, par. 453.8 | | 14 | | 35 ILCS 130/9g new | | | 15 | | 35 ILCS 130/10 | from Ch. 120, par. 453.10 | | 16 | | 35 ILCS 130/11c new | | | 17 | | 35 ILCS 130/23 | from Ch. 120, par. 453.23 | | 18 | | 35 ILCS 130/26 | from Ch. 120, par. 453.26 | | 19 | | 35 ILCS 135/1 | from Ch. 120, par. 453.31 | | 20 | | 35 ILCS 135/3-10 | | | 21 | | 35 ILCS 135/4d | | | 22 | | 35 ILCS 135/4e | | | 23 | | 35 ILCS 143/10-5 | | | 24 | | 35 ILCS 143/10-20 | | | 25 | | 35 ILCS 143/10-21 new | | |
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| 1 | | 35 ILCS 143/10-22 new | | | 2 | | 35 ILCS 143/10-25 | | | 3 | | 35 ILCS 143/10-35 | | | 4 | | 35 ILCS 143/10-36 new | | | 5 | | 35 ILCS 143/10-50 | | | 6 | | 35 ILCS 143/10-53 new | |
| |
|