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(35 ILCS 130/4)
(from Ch. 120, par. 453.4)
No person may engage in business as a distributor of cigarettes in this
State within the meaning of the first 2 definitions of distributor in
Section 1 of this Act without first having obtained a license therefor from
the Department. Application for license shall be made to the Department in
form as furnished and prescribed by the Department. Each applicant for a
license under this Section shall furnish to the Department on the form
signed and verified by the applicant under penalty of perjury the following information:
(a) The name and address of the applicant;
(b) The address of the location at which the
applicant proposes to engage in business as a distributor of cigarettes in this State;
(c) Such other additional information as the
Department may lawfully require by its rules and regulations.
The annual license fee payable to the Department for each distributor's
license shall be $250. The purpose of such annual license fee is to defray
the cost, to the Department, of
serializing cigarette tax stamps. Each applicant for license shall pay such
fee to the Department at the time of submitting his application for license
to the Department.
Every applicant who is required to procure a distributor's license shall
file with his application a joint and several bond. Such bond shall be
executed to the Department of Revenue, with good and sufficient surety or
sureties residing or licensed to do business within the State of Illinois,
in the amount of $2,500, conditioned upon the true and faithful compliance
by the licensee with all of the provisions of this Act. Such bond, or a
reissue thereof, or a substitute therefor, shall be kept in effect during
the entire period covered by the license. A separate application for
license shall be made, a separate annual license fee paid, and a separate
bond filed, for each place of business at which a person who is required to
procure a distributor's license under this Section proposes to engage in
business as a distributor in Illinois under this Act.
The following are ineligible to receive a distributor's license under
(1) a person who is not of good character and
reputation in the community in which he resides; the Department may consider past conviction of a felony but the conviction shall not operate as an absolute bar to licensure;
(2) a person who has been convicted of a felony
under any Federal or State law, if the Department, after investigation and a hearing and consideration of mitigating factors and evidence of rehabilitation contained in the applicant's record, including those in Section 4i, determines that such person has not been sufficiently rehabilitated to warrant the public trust and the conviction will impair the ability of the person to engage in the position for which a license is sought;
(3) a corporation, if any officer, manager or
director thereof, or any stockholder or stockholders owning in the aggregate more than 5% of the stock of such corporation, would not be eligible to receive a license under this Act for any reason;
(4) a person, or any person who owns more than 15
percent of the ownership interests in a person or a related party who:
(a) owes, at the time of application, any
delinquent cigarette taxes that have been determined by law to be due and unpaid, unless the license applicant has entered into an agreement approved by the Department to pay the amount due;
(b) had a license under this Act revoked
within the past two years by the Department for misconduct relating to stolen or contraband cigarettes or has been convicted of a State or federal crime, punishable by imprisonment of one year or more, relating to stolen or contraband cigarettes;
(c) manufactures cigarettes, whether in this
State or out of this State, and who is neither (i) a participating manufacturer as defined in subsection II(jj) of the "Master Settlement Agreement" as defined in Sections 10 of the Tobacco Products Manufacturers' Escrow Act and the Tobacco Products Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS 168/10 and 30 ILCS 167/10); nor (ii) in full compliance with Tobacco Products Manufacturers' Escrow Act and the Tobacco Products Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS 168/ and 30 ILCS 167/);
(d) has been found by the Department, after
notice and a hearing, to have imported or caused to be imported into the United States for sale or distribution any cigarette in violation of 19 U.S.C. 1681a;
(e) has been found by the Department, after
notice and a hearing, to have imported or caused to be imported into the United States for sale or distribution or manufactured for sale or distribution in the United States any cigarette that does not fully comply with the Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331, et seq.); or
(f) has been found by the Department, after
notice and a hearing, to have made a material false statement in the application or has failed to produce records required to be maintained by this Act.
The Department, upon receipt of an application, license fee and bond in
proper form, from a person who is eligible to receive a distributor's
license under this Act, shall issue to such applicant a license in form as
prescribed by the Department, which license shall permit the applicant to
which it is issued to engage in business as a distributor at the place
shown in his application. All licenses issued by the Department under this
Act shall be valid for not to exceed one year after issuance unless sooner
revoked, canceled or suspended as provided in this Act. No license issued
under this Act is transferable or assignable. Such license shall be
conspicuously displayed in the place of business conducted by the licensee
in Illinois under such license. No distributor licensee acquires any vested interest or compensable property right in a license issued under this Act.
A licensed distributor shall notify the Department of any change in the information contained on the application form, including any change in ownership and shall do so within 30 days after any such change.
Any person aggrieved by any decision of the Department under this Section
may, within 20 days after notice of the decision, protest and request a
hearing. Upon receiving a request for a hearing, the Department shall give
notice to the person requesting the hearing of the time and place fixed for the
hearing and shall hold a hearing in conformity with the provisions of this Act
and then issue its final administrative decision in the matter to that person.
In the absence of a protest and request for a hearing within 20 days, the
Department's decision shall become final without any further determination
being made or notice given.
(Source: P.A. 100-286, eff. 1-1-18