Illinois General Assembly - Full Text of SB1919
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Full Text of SB1919  99th General Assembly

SB1919eng 99TH GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cigarette Tax Act is amended by changing
5Sections 4g, 6, 11, and 11c as follows:
 
6    (35 ILCS 130/4g)
7    (This Section may contain text from a Public Act with a
8delayed effective date)
9    Sec. 4g. Retailer's license. Beginning on January 1, 2016,
10no person may engage in business as a retailer of cigarettes in
11this State without first having obtained a license from the
12Department. Application for license shall be made to the
13Department, by electronic means, in a form prescribed by the
14Department. Each applicant for a license under this Section
15shall furnish to the Department, in an electronic format
16established by the Department, the following information:
17        (1) the name and address of the applicant;
18        (2) the address of the location at which the applicant
19    proposes to engage in business as a retailer of cigarettes
20    in this State; and
21        (3) such other additional information as the
22    Department may lawfully require by its rules and
23    regulations.

 

 

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1    The annual license fee payable to the Department for each
2retailer's license shall be $75. The fee shall be deposited
3into the Tax Compliance and Administration Fund and shall be
4for the cost of tobacco retail inspection and contraband
5tobacco and tobacco smuggling with at least two-thirds of the
6money being used for contraband tobacco and tobacco smuggling
7operations and enforcement.
8    Each applicant for a license shall pay the fee to the
9Department at the time of submitting its application for a
10license to the Department. The Department shall require an
11applicant for a license under this Section to electronically
12file and pay the fee.
13    A separate annual license fee shall be paid for each place
14of business at which a person who is required to procure a
15retailer's license under this Section proposes to engage in
16business as a retailer in Illinois under this Act.
17    The following are ineligible to receive a retailer's
18license under this Act:
19        (1) a person who has been convicted of a felony related
20    to the illegal transportation, sale, or distribution of
21    cigarettes, or a tobacco-related felony, under any federal
22    or State law, if the Department, after investigation and a
23    hearing if requested by the applicant, determines that the
24    person has not been sufficiently rehabilitated to warrant
25    the public trust; or
26        (2) a corporation, if any officer, manager, or director

 

 

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1    thereof, or any stockholder or stockholders owning in the
2    aggregate more than 5% of the stock of such corporation,
3    would not be eligible to receive a license under this Act
4    for any reason.
5    The Department, upon receipt of an application and license
6fee, in proper form, from a person who is eligible to receive a
7retailer's license under this Act, shall issue to such
8applicant a license in form as prescribed by the Department.
9That license shall permit the applicant to whom it is issued to
10engage in business as a retailer under this Act at the place
11shown in his or her application. All licenses issued by the
12Department under this Section shall be valid for a period not
13to exceed one year after issuance unless sooner revoked,
14canceled, or suspended as provided in this Act. No license
15issued under this Section is transferable or assignable. The
16license shall be conspicuously displayed in the place of
17business conducted by the licensee in Illinois under such
18license. The Department shall not issue a retailer's license to
19a retailer unless the retailer is also registered under the
20Retailers' Occupation Tax Act. A person who obtains a license
21as a retailer who ceases to do business as specified in the
22license, or who never commenced business, or who obtains a
23distributor's license, or whose license is suspended or
24revoked, shall immediately surrender the license to the
25Department.
26    Any person aggrieved by any decision of the Department

 

 

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1under this Section subsection may, within 30 days after notice
2of the decision, protest and request a hearing. Upon receiving
3a request for a hearing, the Department shall give written
4notice to the person requesting the hearing of the time and
5place fixed for the hearing and shall hold a hearing in
6conformity with the provisions of this Act and then issue its
7final administrative decision in the matter to that person. In
8the absence of a protest and request for a hearing within 30
9days, the Department's decision shall become final without any
10further determination being made or notice given.
11(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 
12    (35 ILCS 130/6)  (from Ch. 120, par. 453.6)
13    (Text of Section before amendment by P.A. 98-1055)
14    Sec. 6. Revocation, cancellation, or suspension of
15license. The Department may, after notice and hearing as
16provided for by this Act, revoke, cancel or suspend the license
17of any distributor or secondary distributor for the violation
18of any provision of this Act, or for noncompliance with any
19provision herein contained, or for any noncompliance with any
20lawful rule or regulation promulgated by the Department under
21Section 8 of this Act, or because the licensee is determined to
22be ineligible for a distributor's license for any one or more
23of the reasons provided for in Section 4 of this Act, or
24because the licensee is determined to be ineligible for a
25secondary distributor's license for any one or more of the

 

 

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1reasons provided for in Section 4c of this Act. However, no
2such license shall be revoked, cancelled or suspended, except
3after a hearing by the Department with notice to the
4distributor or secondary distributor, as aforesaid, and
5affording such distributor or secondary distributor a
6reasonable opportunity to appear and defend, and any
7distributor or secondary distributor aggrieved by any decision
8of the Department with respect thereto may have the
9determination of the Department judicially reviewed, as herein
10provided.
11    The Department may revoke, cancel, or suspend the license
12of any distributor for a violation of the Tobacco Product
13Manufacturers' Escrow Enforcement Act as provided in Section 30
14of that Act. The Department may revoke, cancel, or suspend the
15license of any secondary distributor for a violation of
16subsection (e) of Section 15 of the Tobacco Product
17Manufacturers' Escrow Enforcement Act.
18    Any distributor or secondary distributor aggrieved by any
19decision of the Department under this Section may, within 20
20days after notice of the decision, protest and request a
21hearing. Upon receiving a request for a hearing, the Department
22shall give notice in writing to the distributor or secondary
23distributor requesting the hearing that contains a statement of
24the charges preferred against the distributor or secondary
25distributor and that states the time and place fixed for the
26hearing. The Department shall hold the hearing in conformity

 

 

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1with the provisions of this Act and then issue its final
2administrative decision in the matter to the distributor or
3secondary distributor. In the absence of a protest and request
4for a hearing within 20 days, the Department's decision shall
5become final without any further determination being made or
6notice given.
7    No license so revoked, as aforesaid, shall be reissued to
8any such distributor or secondary distributor within a period
9of 6 months after the date of the final determination of such
10revocation. No such license shall be reissued at all so long as
11the person who would receive the license is ineligible to
12receive a distributor's license under this Act for any one or
13more of the reasons provided for in Section 4 of this Act or is
14ineligible to receive a secondary distributor's license under
15this Act for any one or more of the reasons provided for in
16Section 4c of this Act.
17    The Department upon complaint filed in the circuit court
18may by injunction restrain any person who fails, or refuses, to
19comply with any of the provisions of this Act from acting as a
20distributor or secondary distributor of cigarettes in this
21State.
22(Source: P.A. 96-1027, eff. 7-12-10.)
 
23    (Text of Section after amendment by P.A. 98-1055)
24    Sec. 6. Revocation, cancellation, or suspension of
25license. The Department may, after notice and hearing as

 

 

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1provided for by this Act, revoke, cancel or suspend the license
2of any distributor, secondary distributor, or retailer for the
3violation of any provision of this Act, or for noncompliance
4with any provision herein contained, or for any noncompliance
5with any lawful rule or regulation promulgated by the
6Department under Section 8 of this Act, or because the licensee
7is determined to be ineligible for a distributor's license for
8any one or more of the reasons provided for in Section 4 of
9this Act, or because the licensee is determined to be
10ineligible for a secondary distributor's license for any one or
11more of the reasons provided for in Section 4c of this Act, or
12because the licensee is determined to be ineligible for a
13retailer's license for any one or more of the reasons provided
14for in Section 4g of this Act. However, no such license shall
15be revoked, cancelled or suspended, except after a hearing by
16the Department with notice to the distributor, secondary
17distributor, or retailer, as aforesaid, and affording such
18distributor, secondary distributor, or retailer a reasonable
19opportunity to appear and defend, and any distributor,
20secondary distributor, or retailer aggrieved by any decision of
21the Department with respect thereto may have the determination
22of the Department judicially reviewed, as herein provided.
23    The Department may revoke, cancel, or suspend the license
24of any distributor for a violation of the Tobacco Product
25Manufacturers' Escrow Enforcement Act as provided in Section 30
26of that Act. The Department may revoke, cancel, or suspend the

 

 

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1license of any secondary distributor for a violation of
2subsection (e) of Section 15 of the Tobacco Product
3Manufacturers' Escrow Enforcement Act.
4    If the retailer has a training program that facilitates
5compliance with minimum-age tobacco laws, the Department shall
6suspend for 3 days the license of that retailer for a fourth or
7subsequent violation of the Prevention of Tobacco Use by Minors
8and Sale and Distribution of Tobacco Products Act, as provided
9in subsection (a) of Section 2 of that Act. For the purposes of
10this Section, any violation of subsection (a) of Section 2 of
11the Prevention of Tobacco Use by Minors and Sale and
12Distribution of Tobacco Products Act occurring at the
13retailer's licensed location during a 24-month period shall be
14counted as a violation against the retailer.
15    If the retailer does not have a training program that
16facilitates compliance with minimum-age tobacco laws, the
17Department shall suspend for 3 days the license of that
18retailer for a second violation of the Prevention of Tobacco
19Use by Minors and Sale and Distribution of Tobacco Products
20Act, as provided in subsection (a-5) of Section 2 of that Act.
21    If the retailer does not have a training program that
22facilitates compliance with minimum-age tobacco laws, the
23Department shall suspend for 7 days the license of that
24retailer for a third violation of the Prevention of Tobacco Use
25by Minors and Sale and Distribution of Tobacco Products Act, as
26provided in subsection (a-5) of Section 2 of that Act.

 

 

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1    If the retailer does not have a training program that
2facilitates compliance with minimum-age tobacco laws, the
3Department shall suspend for 30 days the license of a retailer
4for a fourth or subsequent violation of the Prevention of
5Tobacco Use by Minors and Sale and Distribution of Tobacco
6Products Act, as provided in subsection (a-5) of Section 2 of
7that Act.
8    A training program that facilitates compliance with
9minimum-age tobacco laws must include at least the following
10elements: (i) it must explain that only individuals displaying
11valid identification demonstrating that they are 18 years of
12age or older shall be eligible to purchase cigarettes or
13tobacco products and ; (ii) it must explain where a clerk can
14check identification for a date of birth; and (iii) it must
15explain the penalties that a clerk and retailer are subject to
16for violations of the Prevention of Tobacco Use by Minors and
17Sale and Distribution of Tobacco Products Act. The training may
18be conducted electronically. Each retailer that has a training
19program shall require each employee who completes the training
20program to sign a form attesting that the employee has received
21and completed tobacco training. The form shall be kept in the
22employee's file and may be used to provide proof of training.
23    Any distributor, secondary distributor, or retailer
24aggrieved by any decision of the Department under this Section
25may, within 20 days after notice of the decision, protest and
26request a hearing. Upon receiving a request for a hearing, the

 

 

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1Department shall give notice in writing to the distributor,
2secondary distributor, or retailer requesting the hearing that
3contains a statement of the charges preferred against the
4distributor, secondary distributor, or retailer and that
5states the time and place fixed for the hearing. The Department
6shall hold the hearing in conformity with the provisions of
7this Act and then issue its final administrative decision in
8the matter to the distributor, secondary distributor, or
9retailer. In the absence of a protest and request for a hearing
10within 20 days, the Department's decision shall become final
11without any further determination being made or notice given.
12    No license so revoked, as aforesaid, shall be reissued to
13any such distributor, secondary distributor, or retailer
14within a period of 6 months after the date of the final
15determination of such revocation. No such license shall be
16reissued at all so long as the person who would receive the
17license is ineligible to receive a distributor's license under
18this Act for any one or more of the reasons provided for in
19Section 4 of this Act, is ineligible to receive a secondary
20distributor's license under this Act for any one or more of the
21reasons provided for in Section 4c of this Act, or is
22determined to be ineligible for a retailer's license under the
23Act for any one or more of the reasons provided for in Section
244g of this Act.
25    The Department upon complaint filed in the circuit court
26may by injunction restrain any person who fails, or refuses, to

 

 

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1comply with any of the provisions of this Act from acting as a
2distributor, secondary distributor, or retailer of cigarettes
3in this State.
4(Source: P.A. 98-1055, eff. 1-1-16.)
 
5    (35 ILCS 130/11)  (from Ch. 120, par. 453.11)
6    (Text of Section before amendment by P.A. 98-1055)
7    Sec. 11. Every distributor of cigarettes, who is required
8to procure a license under this Act, shall keep within
9Illinois, at his licensed address, complete and accurate
10records of cigarettes held, purchased, manufactured, brought
11in or caused to be brought in from without the State, and sold,
12or otherwise disposed of, and shall preserve and keep within
13Illinois at his licensed address all invoices, bills of lading,
14sales records, copies of bills of sale, inventory at the close
15of each period for which a return is required of all cigarettes
16on hand and of all cigarette revenue stamps, both affixed and
17unaffixed, and other pertinent papers and documents relating to
18the manufacture, purchase, sale or disposition of cigarettes.
19All books and records and other papers and documents that are
20required by this Act to be kept shall be kept in the English
21language, and shall, at all times during the usual business
22hours of the day, be subject to inspection by the Department or
23its duly authorized agents and employees. The Department may
24adopt rules that establish requirements, including record
25forms and formats, for records required to be kept and

 

 

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1maintained by taxpayers. For purposes of this Section,
2"records" means all data maintained by the taxpayer, including
3data on paper, microfilm, microfiche or any type of
4machine-sensible data compilation. Those books, records,
5papers and documents shall be preserved for a period of at
6least 3 years after the date of the documents, or the date of
7the entries appearing in the records, unless the Department, in
8writing, authorizes their destruction or disposal at an earlier
9date. At all times during the usual business hours of the day
10any duly authorized agent or employee of the Department may
11enter any place of business of the distributor, without a
12search warrant, and inspect the premises and the stock or
13packages of cigarettes and the vending devices therein
14contained, to determine whether any of the provisions of this
15Act are being violated. If such agent or employee is denied
16free access or is hindered or interfered with in making such
17examination as herein provided, the license of the distributor
18at such premises shall be subject to revocation by the
19Department.
20(Source: P.A. 88-480.)
 
21    (Text of Section after amendment by P.A. 98-1055)
22    Sec. 11. Every distributor of cigarettes, who is required
23to procure a license under this Act, shall keep within
24Illinois, at his licensed address, complete and accurate
25records of cigarettes held, purchased, manufactured, brought

 

 

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1in or caused to be brought in from without the State, and sold,
2or otherwise disposed of, and shall preserve and keep within
3Illinois at his licensed address all invoices, bills of lading,
4sales records, copies of bills of sale, inventory at the close
5of each period for which a return is required of all cigarettes
6on hand and of all cigarette revenue stamps, both affixed and
7unaffixed, and other pertinent papers and documents relating to
8the manufacture, purchase, sale or disposition of cigarettes.
9Every sales invoice issued by a licensed distributor to a
10retailer in this State shall contain the distributor's
11cigarette distributor license number unless the distributor
12has been granted a waiver by the Department in response to a
13written request in cases where (i) the distributor sells
14cigarettes only to retailers that are wholly-owned by the
15distributor or owned by a wholly-owned subsidiary of the
16distributor; (ii) the retailer obtains cigarettes only from the
17distributor requesting the waiver; and (iii) the distributor
18affixes the tax stamps to the original packages of cigarettes
19sold to the retailer. The distributor shall file a written
20request with the Department, and, if the Department determines
21that the distributor meets the conditions for a waiver, the
22Department shall grant the waiver. All books and records and
23other papers and documents that are required by this Act to be
24kept shall be kept in the English language, and shall, at all
25times during the usual business hours of the day, be subject to
26inspection by the Department or its duly authorized agents and

 

 

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1employees. The Department may adopt rules that establish
2requirements, including record forms and formats, for records
3required to be kept and maintained by taxpayers. For purposes
4of this Section, "records" means all data maintained by the
5taxpayer, including data on paper, microfilm, microfiche or any
6type of machine-sensible data compilation. Those books,
7records, papers and documents shall be preserved for a period
8of at least 3 years after the date of the documents, or the
9date of the entries appearing in the records, unless the
10Department, in writing, authorizes their destruction or
11disposal at an earlier date. At all times during the usual
12business hours of the day any duly authorized agent or employee
13of the Department may enter any place of business of the
14distributor, without a search warrant, and inspect the premises
15and the stock or packages of cigarettes and the vending devices
16therein contained, to determine whether any of the provisions
17of this Act are being violated. If such agent or employee is
18denied free access or is hindered or interfered with in making
19such examination as herein provided, the license of the
20distributor at such premises shall be subject to revocation by
21the Department.
22(Source: P.A. 98-1055, eff. 1-1-16.)
 
23    (35 ILCS 130/11c)
24    (This Section may contain text from a Public Act with a
25delayed effective date)

 

 

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1    Sec. 11c. Retailers; records. Every retailer who is
2required to procure a license under this Act shall keep within
3Illinois complete and accurate records of cigarettes
4purchased, sold, or otherwise disposed of. It shall be the duty
5of every retail licensee to make sales records, copies of bills
6of sale, and inventory at the close of each period for which a
7report is required of all cigarettes on hand available upon
8reasonable notice for the purpose of investigation and control
9by the Department. Such records need not be maintained on the
10licensed premises, but must be maintained in the State of
11Illinois; however, if access is available electronically, the
12records may be maintained out of state. However, all original
13invoices or copies thereof covering purchases of cigarettes
14must be retained on the licensed premises for a period of 90
15days after such purchase, unless the Department has granted a
16waiver in response to a written request in cases where records
17are kept at a central business location within the State of
18Illinois or in cases where records that are available
19electronically are maintained out of state. The Department may
20adopt rules that establish requirements, including record
21forms and formats, for records required to be kept and
22maintained by the retailer. The Department shall adopt rules
23regarding the maintenance and accessibility of records located
24out-of-State pursuant to the waiver provided under this Act.
25    For purposes of this Section, "records" means all data
26maintained by the retailer, including data on paper, microfilm,

 

 

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1microfiche or any type of machine sensible data compilation.
2Those books, records, papers, and documents shall be preserved
3for a period of at least 3 years after the date of the
4documents, or the date of the entries appearing in the records,
5unless the Department, in writing, authorizes their
6destruction or disposal at an earlier date. At all times during
7the usual business hours of the day, any duly authorized agent
8or employee of the Department may enter any place of business
9of the retailer without a search warrant and may inspect the
10premises to determine whether any of the provisions of this Act
11are being violated. If such agent or employee is denied free
12access or is hindered or interfered with in making such
13examination as herein provided, the license of the retailer
14shall be subject to suspension or revocation by the Department.
15(Source: P.A. 98-1055, eff. 1-1-16.)
 
16    Section 10. The Tobacco Products Tax Act of 1995 is amended
17by changing Sections 10-21, 10-25, and 10-35 as follows:
 
18    (35 ILCS 143/10-21)
19    (This Section may contain text from a Public Act with a
20delayed effective date)
21    Sec. 10-21. Retailer's license. Beginning on January 1,
222016, no person may engage in business as a retailer of tobacco
23products in this State without first having obtained a license
24from the Department. Application for license shall be made to

 

 

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1the Department, by electronic means, in a form prescribed by
2the Department. Each applicant for a license under this Section
3shall furnish to the Department, in an electronic format
4established by the Department, the following information:
5        (1) the name and address of the applicant;
6        (2) the address of the location at which the applicant
7    proposes to engage in business as a retailer of tobacco
8    products in this State;
9        (3) such other additional information as the
10    Department may lawfully require by its rules and
11    regulations.
12    The annual license fee payable to the Department for each
13retailer's license shall be $75. The fee will be deposited into
14the Tax Compliance and Administration Fund and shall be used
15for the cost of tobacco retail inspection and contraband
16tobacco and tobacco smuggling with at least two-thirds of the
17money being used for contraband tobacco and tobacco smuggling
18operations and enforcement.
19    Each applicant for license shall pay such fee to the
20Department at the time of submitting its application for
21license to the Department. The Department shall require an
22applicant for a license under this Section to electronically
23file and pay the fee.
24    A separate annual license fee shall be paid for each place
25of business at which a person who is required to procure a
26retailer's license under this Section proposes to engage in

 

 

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1business as a retailer in Illinois under this Act.
2    The following are ineligible to receive a retailer's
3license under this Act:
4        (1) a person who has been convicted of a felony under
5    any federal or State law for smuggling cigarettes or
6    tobacco products or tobacco tax evasion, if the Department,
7    after investigation and a hearing if requested by the
8    applicant, determines that such person has not been
9    sufficiently rehabilitated to warrant the public trust;
10    and
11        (2) 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    The Department, upon receipt of an application and license
17fee, in proper form, from a person who is eligible to receive a
18retailer's license under this Act, shall issue to such
19applicant a license in form as prescribed by the Department,
20which license shall permit the applicant to which it is issued
21to engage in business as a retailer under this Act at the place
22shown in his application. All licenses issued by the Department
23under this Section shall be valid for a period not to exceed
24one year after issuance unless sooner revoked, canceled or
25suspended as provided in this Act. No license issued under this
26Section is transferable or assignable. Such license shall be

 

 

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1conspicuously displayed in the place of business conducted by
2the licensee in Illinois under such license. A person who
3obtains a license as a retailer who ceases to do business as
4specified in the license, or who never commenced business, or
5who obtains a distributor's license, or whose license is
6suspended or revoked, shall immediately surrender the license
7to the Department. The Department shall not issue a license to
8a retailer unless the retailer is also validly registered under
9the Retailers Occupation Tax Act.
10    A retailer as defined under this Act need not obtain an
11additional license under this Act, but shall be deemed to be
12sufficiently licensed by virtue of his being properly licensed
13as a retailer under Section 4g of the Cigarette Tax Act.
14    Any person aggrieved by any decision of the Department
15under this Section subsection may, within 30 days after notice
16of the decision, protest and request a hearing. Upon receiving
17a request for a hearing, the Department shall give notice to
18the person requesting the hearing of the time and place fixed
19for the hearing and shall hold a hearing in conformity with the
20provisions of this Act and then issue its final administrative
21decision in the matter to that person. In the absence of a
22protest and request for a hearing within 30 days, the
23Department's decision shall become final without any further
24determination being made or notice given.
25(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 

 

 

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1    (35 ILCS 143/10-25)
2    (Text of Section before amendment by P.A. 98-1055)
3    Sec. 10-25. License actions. The Department may, after
4notice and a hearing, revoke, cancel, or suspend the license of
5any distributor who violates any of the provisions of this Act.
6The notice shall specify the alleged violation or violations
7upon which the revocation, cancellation, or suspension
8proceeding is based.
9    The Department may revoke, cancel, or suspend the license
10of any distributor for a violation of the Tobacco Product
11Manufacturers' Escrow Enforcement Act as provided in Section 20
12of that Act.
13    The Department may, by application to any circuit court,
14obtain an injunction restraining any person who engages in
15business as a distributor of tobacco products without a license
16(either because his or her license has been revoked, canceled,
17or suspended or because of a failure to obtain a license in the
18first instance) from engaging in that business until that
19person, as if that person were a new applicant for a license,
20complies with all of the conditions, restrictions, and
21requirements of Section 10-20 of this Act and qualifies for and
22obtains a license. Refusal or neglect to obey the order of the
23court may result in punishment for contempt.
24(Source: P.A. 92-737, eff. 7-25-02.)
 
25    (Text of Section after amendment by P.A. 98-1055)

 

 

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1    Sec. 10-25. License actions.
2    (a) The Department may, after notice and a hearing, revoke,
3cancel, or suspend the license of any distributor or retailer
4who violates any of the provisions of this Act. The notice
5shall specify the alleged violation or violations upon which
6the revocation, cancellation, or suspension proceeding is
7based.
8    (b) The Department may revoke, cancel, or suspend the
9license of any distributor for a violation of the Tobacco
10Product Manufacturers' Escrow Enforcement Act as provided in
11Section 20 of that Act.
12    (c) If the retailer has a training program that facilitates
13compliance with minimum-age tobacco laws, the Department shall
14suspend for 3 days the license of that retailer for a fourth or
15subsequent violation of the Prevention of Tobacco Use by Minors
16and Sale and Distribution of Tobacco Products Act, as provided
17in subsection (a) of Section 2 of that Act. For the purposes of
18this Section, any violation of subsection (a) of Section 2 of
19the Prevention of Tobacco Use by Minors and Sale and
20Distribution of Tobacco Products Act occurring at the
21retailer's licensed location, during a 24-month period, shall
22be counted as a violation against the retailer.
23    If the retailer does not have a training program that
24facilitates compliance with minimum-age tobacco laws, the
25Department shall suspend for 3 days the license of that
26retailer for a second violation of the Prevention of Tobacco

 

 

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1Use by Minors and Sale and Distribution of Tobacco Products
2Act, as provided in subsection (a-5) of Section 2 of that Act.
3    If the retailer does not have a training program that
4facilitates compliance with minimum-age tobacco laws, the
5Department shall suspend for 7 days the license of that
6retailer for a third violation of the Prevention of Tobacco Use
7by Minors and Sale and Distribution of Tobacco Products Act, as
8provided in subsection (a-5) of Section 2 of that Act.
9    If the retailer does not have a training program that
10facilitates compliance with minimum-age tobacco laws, the
11Department shall suspend for 30 days the license of a retailer
12for a fourth or subsequent violation of the Prevention of
13Tobacco Use by Minors and Sale and Distribution of Tobacco
14Products Act, as provided in subsection (a-5) of Section 2 of
15that Act.
16    A training program that facilitates compliance with
17minimum-age tobacco laws must include at least the following
18elements: (i) it must explain that only individuals displaying
19valid identification demonstrating that they are 18 years of
20age or older shall be eligible to purchase cigarettes or
21tobacco products and ; (ii) it must explain where a clerk can
22check identification for a date of birth; and (iii) it must
23explain the penalties that a clerk and retailer are subject to
24for violations of the Prevention of Tobacco Use by Minors and
25Sale and Distribution of Tobacco Products Act. The training may
26be conducted electronically. Each retailer that has a training

 

 

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1program shall require each employee who completes the training
2program to sign a form attesting that the employee has received
3and completed tobacco training. The form shall be kept in the
4employee's file and may be used to provide proof of training.
5    (d) The Department may, by application to any circuit
6court, obtain an injunction restraining any person who engages
7in business as a distributor of tobacco products without a
8license (either because his or her license has been revoked,
9canceled, or suspended or because of a failure to obtain a
10license in the first instance) from engaging in that business
11until that person, as if that person were a new applicant for a
12license, complies with all of the conditions, restrictions, and
13requirements of Section 10-20 of this Act and qualifies for and
14obtains a license. Refusal or neglect to obey the order of the
15court may result in punishment for contempt.
16(Source: P.A. 98-1055, eff. 1-1-16.)
 
17    (35 ILCS 143/10-35)
18    (Text of Section before amendment by P.A. 98-1055)
19    Sec. 10-35. Record keeping. Every distributor, as defined
20in Section 10-5, shall keep complete and accurate records of
21tobacco products held, purchased, manufactured, brought in or
22caused to be brought in from without the State, and tobacco
23products sold, or otherwise disposed of, and shall preserve and
24keep all invoices, bills of lading, sales records, and copies
25of bills of sale, the wholesale price for tobacco products sold

 

 

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1or otherwise disposed of, an inventory of tobacco products
2prepared as of December 31 of each year or as of the last day of
3the distributor's fiscal year if he or she files federal income
4tax returns on the basis of a fiscal year, and other pertinent
5papers and documents relating to the manufacture, purchase,
6sale, or disposition of tobacco products. Books, records,
7papers, and documents that are required by this Act to be kept
8shall, at all times during the usual business hours of the day,
9be subject to inspection by the Department or its duly
10authorized agents and employees. The books, records, papers,
11and documents for any period with respect to which the
12Department is authorized to issue a notice of tax liability
13shall be preserved until the expiration of that period.
14(Source: P.A. 89-21, eff. 6-6-95.)
 
15    (Text of Section after amendment by P.A. 98-1055)
16    Sec. 10-35. Record keeping.
17    (a) Every distributor, as defined in Section 10-5, shall
18keep complete and accurate records of tobacco products held,
19purchased, manufactured, brought in or caused to be brought in
20from without the State, and tobacco products sold, or otherwise
21disposed of, and shall preserve and keep all invoices, bills of
22lading, sales records, and copies of bills of sale, the
23wholesale price for tobacco products sold or otherwise disposed
24of, an inventory of tobacco products prepared as of December 31
25of each year or as of the last day of the distributor's fiscal

 

 

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1year if he or she files federal income tax returns on the basis
2of a fiscal year, and other pertinent papers and documents
3relating to the manufacture, purchase, sale, or disposition of
4tobacco products. Every sales invoice issued by a licensed
5distributor to a retailer in this State shall contain the
6distributor's Tobacco Products License number unless the
7distributor has been granted a waiver by the Department in
8response to a written request in cases where (i) the
9distributor sells cigarettes only to retailers that are
10wholly-owned by the distributor or owned by a wholly-owned
11subsidiary of the distributor; (ii) the retailer obtains
12cigarettes only from the distributor requesting the waiver; and
13(iii) the distributor affixes the tax stamps to the original
14packages of cigarettes sold to the retailer. The distributor
15shall file a written request with the Department, and, if the
16Department determines that the distributor meets the
17conditions for a waiver, the Department shall grant the waiver.
18    (b) Every retailer, as defined in Section 10-5, shall keep
19complete and accurate records of tobacco products held,
20purchased, sold, or otherwise disposed of, and shall preserve
21and keep all invoices, bills of lading, sales records, and
22copies of bills of sale, returns and other pertinent papers and
23documents relating to the purchase, sale, or disposition of
24tobacco products. Such records need not be maintained on the
25licensed premises, but must be maintained in the State of
26Illinois; however, if access is available electronically, the

 

 

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1records may be maintained out of state. However, all original
2invoices or copies thereof covering purchases of tobacco
3products must be retained on the licensed premises for a period
4of 90 days after such purchase, unless the Department has
5granted a waiver in response to a written request in cases
6where records are kept at a central business location within
7the State of Illinois or in cases where records that are
8available electronically are maintained out of state. The
9Department shall adopt rules regarding the maintenance and
10accessibility of records located out-of-State pursuant to the
11waiver provided under this Act.
12    (c) Books, records, papers, and documents that are required
13by this Act to be kept shall, at all times during the usual
14business hours of the day, be subject to inspection by the
15Department or its duly authorized agents and employees. The
16books, records, papers, and documents for any period with
17respect to which the Department is authorized to issue a notice
18of tax liability shall be preserved until the expiration of
19that period.
20(Source: P.A. 98-1055, eff. 1-1-16.)
 
21    Section 15. The Prevention of Tobacco Use by Minors and
22Sale and Distribution of Tobacco Products Act is amended by
23changing Section 2 as follows:
 
24    (720 ILCS 675/2)  (from Ch. 23, par. 2358)

 

 

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1    (Text of Section before amendment by P.A. 98-1055)
2    Sec. 2. Penalties.
3    (a) Any person who violates subsection (a), (a-5), or (a-6)
4of Section 1 or Section 1.5 of this Act is guilty of a petty
5offense and for the first offense shall be fined $200, $400 for
6the second offense in a 12-month period, and $600 for the third
7or any subsequent offense in a 12-month period.
8    (b) If a minor violates subsection (a-7) of Section 1 he or
9she is guilty of a petty offense and the court may impose a
10sentence of 15 hours of community service or a fine of $25 for
11a first violation.
12    (c) A second violation by a minor of subsection (a-7) of
13Section 1 that occurs within 12 months after the first
14violation is punishable by a fine of $50 and 25 hours of
15community service.
16    (d) A third or subsequent violation by a minor of
17subsection (a-7) of Section 1 that occurs within 12 months
18after the first violation is punishable by a $100 fine and 30
19hours of community service.
20    (e) Any second or subsequent violation not within the
2112-month time period after the first violation is punishable as
22provided for a first violation.
23    (f) If a minor is convicted of or placed on supervision for
24a violation of subsection (a-7) of Section 1, the court may, in
25its discretion, and upon recommendation by the State's
26Attorney, order that minor and his or her parents or legal

 

 

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1guardian to attend a smoker's education or youth diversion
2program if that program is available in the jurisdiction where
3the offender resides. Attendance at a smoker's education or
4youth diversion program shall be time-credited against any
5community service time imposed for any first violation of
6subsection (a-7) of Section 1. In addition to any other penalty
7that the court may impose for a violation of subsection (a-7)
8of Section 1, the court, upon request by the State's Attorney,
9may in its discretion require the offender to remit a fee for
10his or her attendance at a smoker's education or youth
11diversion program.
12    (g) For purposes of this Section, "smoker's education
13program" or "youth diversion program" includes, but is not
14limited to, a seminar designed to educate a person on the
15physical and psychological effects of smoking tobacco products
16and the health consequences of smoking tobacco products that
17can be conducted with a locality's youth diversion program.
18    (h) All moneys collected as fines for violations of
19subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
20distributed in the following manner:
21        (1) one-half of each fine shall be distributed to the
22    unit of local government or other entity that successfully
23    prosecuted the offender; and
24        (2) one-half shall be remitted to the State to be used
25    for enforcing this Act.
26(Source: P.A. 98-350, eff. 1-1-14.)
 

 

 

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1    (Text of Section after amendment by P.A. 98-1055)
2    Sec. 2. Penalties.
3    (a) Any person who violates subsection (a) or (a-5) of
4Section 1 or Section 1.5 of this Act is guilty of a petty
5offense. For the first offense in a 24-month period, the person
6shall be fined $200 if his or her employer has a training
7program that facilitates compliance with minimum-age tobacco
8laws. For the second offense in a 24-month period, the person
9shall be fined $400 if his or her employer has a training
10program that facilitates compliance with minimum-age tobacco
11laws. For the third offense in a 24-month period, the person
12shall be fined $600 if his or her employer has a training
13program that facilitates compliance with minimum-age tobacco
14laws. For the fourth or subsequent offense in a 24-month
15period, the person shall be fined $800 if his or her employer
16has a training program that facilitates compliance with
17minimum-age tobacco laws. For the purposes of this subsection,
18the 24-month period shall begin with the person's first
19violation of the Act. The penalties in this subsection are in
20addition to any other penalties prescribed under the Cigarette
21Tax Act and the Tobacco Products Tax Act of 1995.
22    (a-5) Any person who violates subsection (a) or (a-5) of
23Section 1 or Section 1.5 of this Act is guilty of a petty
24offense. For the first offense, the retailer shall be fined
25$200 if it does not have a training program that facilitates

 

 

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1compliance with minimum-age tobacco laws. For the second
2offense, the retailer shall be fined $400 if it does not have a
3training program that facilitates compliance with minimum-age
4tobacco laws. For the third offense, the retailer shall be
5fined $600 if it does not have a training program that
6facilitates compliance with minimum-age tobacco laws. For the
7fourth or subsequent offense in a 24-month period, the retailer
8shall be fined $800 if it does not have a training program that
9facilitates compliance with minimum-age tobacco laws. For the
10purposes of this subsection, the 24-month period shall begin
11with the person's first violation of the Act. The penalties in
12this subsection are in addition to any other penalties
13prescribed under the Cigarette Tax Act and the Tobacco Products
14Tax Act of 1995.
15    (a-6) For the purpose of this Act, a training program that
16facilitates compliance with minimum-age tobacco laws must
17include at least the following elements: (i) it must explain
18that only individuals displaying valid identification
19demonstrating that they are 18 years of age or older shall be
20eligible to purchase cigarettes or tobacco products and ; (ii)
21it must explain where a clerk can check identification for a
22date of birth; and (iii) it must explain the penalties that a
23clerk and retailer are subject to for violations of the
24Prevention of Tobacco Use by Minors and Sale and Distribution
25of Tobacco Products Act. The training may be conducted
26electronically. Each retailer that has a training program shall

 

 

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1require each employee who completes the training program to
2sign a form attesting that the employee has received and
3completed tobacco training. The form shall be kept in the
4employee's file and may be used to provide proof of training.
5    (b) If a minor violates subsection (a-7) of Section 1 he or
6she is guilty of a petty offense and the court may impose a
7sentence of 25 hours of community service and a fine of $50 for
8a first violation. If a minor violates subsection (a-6) of
9Section 1, he or she is guilty of a Class A misdemeanor.
10    (c) A second violation by a minor of subsection (a-7) of
11Section 1 that occurs within 12 months after the first
12violation is punishable by a fine of $75 and 50 hours of
13community service.
14    (d) A third or subsequent violation by a minor of
15subsection (a-7) of Section 1 that occurs within 12 months
16after the first violation is punishable by a $200 fine and 50
17hours of community service.
18    (e) Any second or subsequent violation not within the
1912-month time period after the first violation is punishable as
20provided for a first violation.
21    (f) If a minor is convicted of or placed on supervision for
22a violation of subsection (a-6) or (a-7) of Section 1, the
23court may, in its discretion, and upon recommendation by the
24State's Attorney, order that minor and his or her parents or
25legal guardian to attend a smoker's education or youth
26diversion program if that program is available in the

 

 

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1jurisdiction where the offender resides. Attendance at a
2smoker's education or youth diversion program shall be
3time-credited against any community service time imposed for
4any first violation of subsection (a-7) of Section 1. In
5addition to any other penalty that the court may impose for a
6violation of subsection (a-7) of Section 1, the court, upon
7request by the State's Attorney, may in its discretion require
8the offender to remit a fee for his or her attendance at a
9smoker's education or youth diversion program.
10    (g) For purposes of this Section, "smoker's education
11program" or "youth diversion program" includes, but is not
12limited to, a seminar designed to educate a person on the
13physical and psychological effects of smoking tobacco products
14and the health consequences of smoking tobacco products that
15can be conducted with a locality's youth diversion program.
16    (h) All moneys collected as fines for violations of
17subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
18distributed in the following manner:
19        (1) one-half of each fine shall be distributed to the
20    unit of local government or other entity that successfully
21    prosecuted the offender; and
22        (2) one-half shall be remitted to the State to be used
23    for enforcing this Act.
24    Any violation of subsection (a) or (a-5) of Section 1 or
25Section 1.5 shall be reported to the Department of Revenue
26within 7 business days.

 

 

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1(Source: P.A. 98-350, eff. 1-1-14; 98-1055, eff. 1-1-16.)
 
2    Section 95. No acceleration or delay. Where this Act makes
3changes in a statute that is represented in this Act by text
4that is not yet or no longer in effect (for example, a Section
5represented by multiple versions), the use of that text does
6not accelerate or delay the taking effect of (i) the changes
7made by this Act or (ii) provisions derived from any other
8Public Act.