Public Act 093-0930
 
SB3083 Enrolled LRB093 20849 SJM 46782 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003 is amended by changing Sections 15 and
30 as follows:
 
    (30 ILCS 167/15)
    Sec. 15. Certifications; directory; tax stamps.
    (a) Every tobacco product manufacturer whose cigarettes
are sold in this State whether directly or through a
distributor, retailer, or similar intermediary or
intermediaries shall execute and deliver on a form prescribed
by the Attorney General a certification to the Attorney
General, no later than the thirtieth day of April each year,
certifying under penalty of perjury that, as of the date of the
certification, the tobacco product manufacturer either: (i) is
a participating manufacturer and has generally performed its
financial obligations under the Master Settlement Agreement;
or (ii) is in full compliance with the Escrow Act, including
all quarterly installment payments.
        (1) A participating manufacturer shall include in its
    certification a list of its brand families. The
    participating manufacturer shall update the list 30 days
    prior to any addition to or modification of its brand
    families by executing and delivering a supplemental
    certification to the Attorney General.
        (2) A non-participating manufacturer shall include in
    its certification a complete list of all of its brand
    families: (i) separately listing brand families of
    cigarettes and the number of units sold for each brand
    family that were sold in the State during the preceding
    calendar year; (ii) listing all of its brand families that
    have been sold in the State at any time during the current
    calendar year; (iii) indicating by an asterisk, any brand
    family sold in the State during the preceding calendar year
    that is no longer being sold in the State as of the date of
    the certification; and (iv) identifying by name and address
    any other manufacturer of the brand families in the
    preceding calendar year. The non-participating
    manufacturer shall update the list 30 days prior to any
    addition to or modification of its brand families by
    executing and delivering a supplemental certification to
    the Attorney General.
        (3) In the case of a non-participating manufacturer,
    the certification shall further certify:
            (A) that the non-participating manufacturer is
        registered to do business in this State or has
        appointed a resident agent for service of process and
        provided notice thereof as required by item 4 of
        subsection (a) of this Section;
            (B) that the non-participating manufacturer has
        (i) established and continues to maintain a qualified
        escrow fund as that term is defined in Section 10 of
        the Escrow Act, and (ii) executed a qualified escrow
        agreement that has been reviewed and approved by the
        Attorney General and that governs the qualified escrow
        fund;
            (C) that the non-participating manufacturer is in
        full compliance with the Escrow Act and this Act, and
        any regulations promulgated pursuant thereto;
            (D) the name, address and telephone number of the
        financial institution where the non-participating
        manufacturer has established the qualified escrow fund
        required pursuant to Section 15 of the Escrow Act and
        all regulations promulgated thereto;
            (E) the account number of the qualified escrow fund
        and sub-account number for this State;
            (F) the amount the non-participating manufacturer
        placed in the fund for cigarettes sold in the State
        during the preceding calendar year, including the
        dates and amount of each deposit, and such evidence or
        verification as may be deemed necessary by the Attorney
        General to confirm the foregoing; and
            (G) the amounts of and dates of any withdrawal or
        transfer of funds the non-participating manufacturer
        made at any time from the fund or from any other
        qualified escrow fund into which it ever made escrow
        payments pursuant to Section 15 of the Escrow Act and
        all regulations promulgated thereto.
        (4) A tobacco product manufacturer may not include a
    brand family in its certification unless: (i) in the case
    of a participating manufacturer, the participating
    manufacturer affirms that the brand family is to be deemed
    to be its cigarettes for purposes of calculating its
    payments under the master settlement agreement for the
    relevant year, in the volume and shares determined pursuant
    to the master settlement agreement; and (ii) in the case of
    a non-participating manufacturer, the non-participating
    manufacturer affirms that the brand family is to be deemed
    to be its cigarettes for purposes of Section 15 of the
    Escrow Act.
        Nothing in this Section shall be construed as limiting
    or otherwise affecting the State's right to maintain that a
    brand family constitutes cigarettes of a different tobacco
    product manufacturer for purposes of calculating payments
    under the master settlement agreement or for purposes of
    Section 15 of the Escrow Act.
        (5) The tobacco product manufacturers shall maintain
    all invoices and documentation of sales and other
    information relied upon for certification for a period of 5
    years, unless otherwise required by law to maintain them
    for a greater period of time.
    (b) Not later than 6 months after the effective date of
this Act, the Attorney General shall develop and make available
for public inspection, through publishing on its website, a
directory listing all tobacco product manufacturers that have
provided current and accurate certifications conforming to the
requirements of subsection (a) of Section 15 and all brand
families that are listed in the certifications, except for the
following:
        (1) The Attorney General shall not include or retain in
    the directory the name or brand families of any
    non-participating manufacturer that fails to provide the
    required certification or whose certification the Attorney
    General determines is not in compliance with subsections
    (a)(2) or (a)(3) of Section 15, unless the Attorney General
    has determined that the violation has been cured to the
    satisfaction of the Attorney General.
        (2) Neither a tobacco product manufacturer nor brand
    family shall be included or retained in the directory if
    the Attorney General concludes that: (i) in the case of a
    non-participating manufacturer all escrow payments
    required pursuant to Section 15 of the Escrow Act for any
    period for any brand family, whether or not listed by the
    non-participating manufacturer, have not been fully paid
    into a qualified escrow fund governed by a qualified escrow
    agreement that has been approved by the Attorney General;
    or (ii) all outstanding final judgments, including
    interest thereon, for violations of Section 15 of the
    Escrow Act have not been fully satisfied for that brand
    family and manufacturer.
    (c) The Attorney General shall update the directory as
necessary in order to correct mistakes and to add or remove a
tobacco product manufacturer or brand families to keep the
directory in conformity with the requirements of this Act.
    (d) Every distributor shall provide and update as necessary
an electronic mail address to the Attorney General for the
purpose of receiving any notifications as may be required by
this Act.
    (e) It shall be unlawful for any person: (i) to affix a
stamp to a package or other container of cigarettes of a
tobacco product manufacturer or brand family not included in
the directory; or (ii) to sell, offer for sale, or possess for
sale in this State, ; or (ii) import for personal consumption in
this State, cigarettes of a tobacco product manufacturer or
brand family not included in the directory.
(Source: P.A. 93-446, eff. 1-1-04.)
 
    (30 ILCS 167/30)
    Sec. 30. Penalties and other remedies.
    (a) In addition to or in lieu of any other civil or
criminal remedy provided by law, upon a determination that a
distributor has violated subsection (e) (c) of Section 15 or
any regulation adopted pursuant thereto, the Director may
revoke or suspend the license of any stamping agent in the
manner provided by Section 6 of the Cigarette Tax Act, Section
6 of the Cigarette Use Tax Act, or Section 10-25 of the Tobacco
Products Tax Act of 1995, as appropriate. Each stamp affixed
and each offer to sell cigarettes in violation of subsection
(e) (c) of Section 15 shall constitute a separate violation.
For each violation, the Director may also impose a civil
penalty in an amount not to exceed the greater of 500% of the
retail value of the cigarettes sold or $5,000 upon a
determination of violation of subsection (e) (c) of Section 15
or any regulations adopted pursuant thereto.
    (b) Any cigarettes that have been sold, offered for sale,
or possessed for sale in this State, or imported for personal
consumption in this State in violation of subsection (e) (c) of
Section 15 shall be subject to seizure and forfeiture as
provided in Sections 18, 18a, and 20 of the Cigarette Tax Act
and Sections 24, 25, 25a and 26 of the Cigarette Use Tax Act,
and all cigarettes so seized and forfeited shall be destroyed
and not resold.
    (c) The Attorney General may seek an injunction to restrain
a threatened or actual violation of subsection (e) (c) of
Section 15, subsection (a) of Section 25, or subsection (d) of
Section 25 by a stamping agent and to compel the stamping agent
to comply with such subsections. In any action brought pursuant
to this Section, the State shall be entitled to recover the
costs of investigation, costs of the action, and reasonable
attorney fees.
    (d) It shall be unlawful for a person to: (i) sell or
distribute cigarettes; or (ii) acquire, hold, own, possess,
transport, import, or cause to be imported cigarettes that the
person knows or should know are intended for distribution or
sale in the State in violation of subsection (e) (c) of Section
15. A violation of this Section shall be a Class 2 felony.
    (e) A person who violates subsection (e) (c) of Section 15
engages in an unfair and deceptive trade practice in violation
of the Uniform Deceptive Trade Practices Act.
(Source: P.A. 93-446, eff. 1-1-04.)

Effective Date: 1/1/2005