95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5366

 

Introduced , by Rep. Karen A. Yarbrough

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/3-12   from Ch. 43, par. 108
235 ILCS 5/6-16.1
720 ILCS 675/Act title
720 ILCS 675/0.01   from Ch. 23, par. 2356.9
720 ILCS 675/1   from Ch. 23, par. 2357
720 ILCS 677/15

    Amends the Sale of Tobacco to Minors Act. Changes the title of the Act to the Sale and Distribution of Tobacco Products Act. Provides that a person shall not distribute without charge samples of any tobacco product to any other person, regardless of age: (1) at a retail establishment selling tobacco products; (2) from a lunch wagon; or (3) on a public way as a promotion or advertisement of a tobacco manufacturer or tobacco product. Provides that the prohibition applies even if the person who is intended to receive the tobacco product purchased another product from the person intending to distribute the tobacco product. Retains the same penalties as the penalties for distribution of tobacco products to minors. Amends the Liquor Control Act of 1934 and the Display of Tobacco Products Act to make conforming changes.


LRB095 17543 RLC 43617 b

 

 

A BILL FOR

 

HB5366 LRB095 17543 RLC 43617 b

1     AN ACT concerning tobacco.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Liquor Control Act of 1934 is amended by
5 changing Sections 3-12 and 6-16.1 as follows:
 
6     (235 ILCS 5/3-12)  (from Ch. 43, par. 108)
7     (Text of Section after amendment by P.A. 95-634)
8     Sec. 3-12. Powers and duties of State Commission.
9     (a) The State commission shall have the following powers,
10 functions and duties:
11         (1) To receive applications and to issue licenses to
12     manufacturers, foreign importers, importing distributors,
13     distributors, non-resident dealers, on premise consumption
14     retailers, off premise sale retailers, special event
15     retailer licensees, special use permit licenses, auction
16     liquor licenses, brew pubs, caterer retailers,
17     non-beverage users, railroads, including owners and
18     lessees of sleeping, dining and cafe cars, airplanes,
19     boats, brokers, and wine maker's premises licensees in
20     accordance with the provisions of this Act, and to suspend
21     or revoke such licenses upon the State commission's
22     determination, upon notice after hearing, that a licensee
23     has violated any provision of this Act or any rule or

 

 

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1     regulation issued pursuant thereto and in effect for 30
2     days prior to such violation. Except in the case of an
3     action taken pursuant to a violation of Section 6-3, 6-5,
4     or 6-9, any action by the State Commission to suspend or
5     revoke a licensee's license may be limited to the license
6     for the specific premises where the violation occurred.
7         In lieu of suspending or revoking a license, the
8     commission may impose a fine, upon the State commission's
9     determination and notice after hearing, that a licensee has
10     violated any provision of this Act or any rule or
11     regulation issued pursuant thereto and in effect for 30
12     days prior to such violation. The fine imposed under this
13     paragraph may not exceed $500 for each violation. Each day
14     that the activity, which gave rise to the original fine,
15     continues is a separate violation. The maximum fine that
16     may be levied against any licensee, for the period of the
17     license, shall not exceed $20,000. The maximum penalty that
18     may be imposed on a licensee for selling a bottle of
19     alcoholic liquor with a foreign object in it or serving
20     from a bottle of alcoholic liquor with a foreign object in
21     it shall be the destruction of that bottle of alcoholic
22     liquor for the first 10 bottles so sold or served from by
23     the licensee. For the eleventh bottle of alcoholic liquor
24     and for each third bottle thereafter sold or served from by
25     the licensee with a foreign object in it, the maximum
26     penalty that may be imposed on the licensee is the

 

 

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1     destruction of the bottle of alcoholic liquor and a fine of
2     up to $50.
3         (2) To adopt such rules and regulations consistent with
4     the provisions of this Act which shall be necessary to
5     carry on its functions and duties to the end that the
6     health, safety and welfare of the People of the State of
7     Illinois shall be protected and temperance in the
8     consumption of alcoholic liquors shall be fostered and
9     promoted and to distribute copies of such rules and
10     regulations to all licensees affected thereby.
11         (3) To call upon other administrative departments of
12     the State, county and municipal governments, county and
13     city police departments and upon prosecuting officers for
14     such information and assistance as it deems necessary in
15     the performance of its duties.
16         (4) To recommend to local commissioners rules and
17     regulations, not inconsistent with the law, for the
18     distribution and sale of alcoholic liquors throughout the
19     State.
20         (5) To inspect, or cause to be inspected, any premises
21     in this State where alcoholic liquors are manufactured,
22     distributed, warehoused, or sold.
23         (5.1) Upon receipt of a complaint or upon having
24     knowledge that any person is engaged in business as a
25     manufacturer, importing distributor, distributor, or
26     retailer without a license or valid license, to notify the

 

 

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1     local liquor authority, file a complaint with the State's
2     Attorney's Office of the county where the incident
3     occurred, or initiate an investigation with the
4     appropriate law enforcement officials.
5         (5.2) To issue a cease and desist notice to persons
6     shipping alcoholic liquor into this State from a point
7     outside of this State if the shipment is in violation of
8     this Act.
9         (5.3) To receive complaints from licensees, local
10     officials, law enforcement agencies, organizations, and
11     persons stating that any licensee has been or is violating
12     any provision of this Act or the rules and regulations
13     issued pursuant to this Act. Such complaints shall be in
14     writing, signed and sworn to by the person making the
15     complaint, and shall state with specificity the facts in
16     relation to the alleged violation. If the Commission has
17     reasonable grounds to believe that the complaint
18     substantially alleges a violation of this Act or rules and
19     regulations adopted pursuant to this Act, it shall conduct
20     an investigation. If, after conducting an investigation,
21     the Commission is satisfied that the alleged violation did
22     occur, it shall proceed with disciplinary action against
23     the licensee as provided in this Act.
24         (6) To hear and determine appeals from orders of a
25     local commission in accordance with the provisions of this
26     Act, as hereinafter set forth. Hearings under this

 

 

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1     subsection shall be held in Springfield or Chicago, at
2     whichever location is the more convenient for the majority
3     of persons who are parties to the hearing.
4         (7) The commission shall establish uniform systems of
5     accounts to be kept by all retail licensees having more
6     than 4 employees, and for this purpose the commission may
7     classify all retail licensees having more than 4 employees
8     and establish a uniform system of accounts for each class
9     and prescribe the manner in which such accounts shall be
10     kept. The commission may also prescribe the forms of
11     accounts to be kept by all retail licensees having more
12     than 4 employees, including but not limited to accounts of
13     earnings and expenses and any distribution, payment, or
14     other distribution of earnings or assets, and any other
15     forms, records and memoranda which in the judgment of the
16     commission may be necessary or appropriate to carry out any
17     of the provisions of this Act, including but not limited to
18     such forms, records and memoranda as will readily and
19     accurately disclose at all times the beneficial ownership
20     of such retail licensed business. The accounts, forms,
21     records and memoranda shall be available at all reasonable
22     times for inspection by authorized representatives of the
23     State commission or by any local liquor control
24     commissioner or his or her authorized representative. The
25     commission, may, from time to time, alter, amend or repeal,
26     in whole or in part, any uniform system of accounts, or the

 

 

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1     form and manner of keeping accounts.
2         (8) In the conduct of any hearing authorized to be held
3     by the commission, to appoint, at the commission's
4     discretion, hearing officers to conduct hearings involving
5     complex issues or issues that will require a protracted
6     period of time to resolve, to examine, or cause to be
7     examined, under oath, any licensee, and to examine or cause
8     to be examined the books and records of such licensee; to
9     hear testimony and take proof material for its information
10     in the discharge of its duties hereunder; to administer or
11     cause to be administered oaths; for any such purpose to
12     issue subpoena or subpoenas to require the attendance of
13     witnesses and the production of books, which shall be
14     effective in any part of this State, and to adopt rules to
15     implement its powers under this paragraph (8).
16         Any Circuit Court may by order duly entered, require
17     the attendance of witnesses and the production of relevant
18     books subpoenaed by the State commission and the court may
19     compel obedience to its order by proceedings for contempt.
20         (9) To investigate the administration of laws in
21     relation to alcoholic liquors in this and other states and
22     any foreign countries, and to recommend from time to time
23     to the Governor and through him or her to the legislature
24     of this State, such amendments to this Act, if any, as it
25     may think desirable and as will serve to further the
26     general broad purposes contained in Section 1-2 hereof.

 

 

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1         (10) To adopt such rules and regulations consistent
2     with the provisions of this Act which shall be necessary
3     for the control, sale or disposition of alcoholic liquor
4     damaged as a result of an accident, wreck, flood, fire or
5     other similar occurrence.
6         (11) To develop industry educational programs related
7     to responsible serving and selling, particularly in the
8     areas of overserving consumers and illegal underage
9     purchasing and consumption of alcoholic beverages.
10         (11.1) To license persons providing education and
11     training to alcohol beverage sellers and servers under the
12     Beverage Alcohol Sellers and Servers Education and
13     Training (BASSET) programs and to develop and administer a
14     public awareness program in Illinois to reduce or eliminate
15     the illegal purchase and consumption of alcoholic beverage
16     products by persons under the age of 21. Application for a
17     license shall be made on forms provided by the State
18     Commission.
19         (12) To develop and maintain a repository of license
20     and regulatory information.
21         (13) On or before January 15, 1994, the Commission
22     shall issue a written report to the Governor and General
23     Assembly that is to be based on a comprehensive study of
24     the impact on and implications for the State of Illinois of
25     Section 1926 of the Federal ADAMHA Reorganization Act of
26     1992 (Public Law 102-321). This study shall address the

 

 

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1     extent to which Illinois currently complies with the
2     provisions of P.L. 102-321 and the rules promulgated
3     pursuant thereto.
4         As part of its report, the Commission shall provide the
5     following essential information:
6             (i) the number of retail distributors of tobacco
7         products, by type and geographic area, in the State;
8             (ii) the number of reported citations and
9         successful convictions, categorized by type and
10         location of retail distributor, for violation of the
11         Sale and Distribution of Tobacco Products to Minors Act
12         and the Smokeless Tobacco Limitation Act;
13             (iii) the extent and nature of organized
14         educational and governmental activities that are
15         intended to promote, encourage or otherwise secure
16         compliance with any Illinois laws that prohibit the
17         sale or distribution of tobacco products to minors; and
18             (iv) the level of access and availability of
19         tobacco products to individuals under the age of 18.
20         To obtain the data necessary to comply with the
21     provisions of P.L. 102-321 and the requirements of this
22     report, the Commission shall conduct random, unannounced
23     inspections of a geographically and scientifically
24     representative sample of the State's retail tobacco
25     distributors.
26         The Commission shall consult with the Department of

 

 

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1     Public Health, the Department of Human Services, the
2     Illinois State Police and any other executive branch
3     agency, and private organizations that may have
4     information relevant to this report.
5         The Commission may contract with the Food and Drug
6     Administration of the U.S. Department of Health and Human
7     Services to conduct unannounced investigations of Illinois
8     tobacco vendors to determine compliance with federal laws
9     relating to the illegal sale of cigarettes and smokeless
10     tobacco products to persons under the age of 18.
11         (14) On or before April 30, 2008 and every 2 years
12     thereafter, the Commission shall present a written report
13     to the Governor and the General Assembly that shall be
14     based on a study of the impact of this amendatory Act of
15     the 95th General Assembly on the business of soliciting,
16     selling, and shipping wine from inside and outside of this
17     State directly to residents of this State. As part of its
18     report, the Commission shall provide all of the following
19     information:
20             (A) The amount of State excise and sales tax
21         revenues generated.
22             (B) The amount of licensing fees received.
23             (C) The number of cases of wine shipped from inside
24         and outside of this State directly to residents of this
25         State.
26             (D) The number of alcohol compliance operations

 

 

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1         conducted.
2             (E) The number of winery shipper's licenses
3         issued.
4             (F) The number of each of the following: reported
5         violations; cease and desist notices issued by the
6         Commission; notices of violations issued by the
7         Commission and to the Department of Revenue; and
8         notices and complaints of violations to law
9         enforcement officials, including, without limitation,
10         the Illinois Attorney General and the U.S. Department
11         of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
12         (15) As a means to reduce the underage consumption of
13     alcoholic liquors, the Commission shall conduct alcohol
14     compliance operations to investigate whether businesses
15     that are soliciting, selling, and shipping wine from inside
16     or outside of this State directly to residents of this
17     State are licensed by this State or are selling or
18     attempting to sell wine to persons under 21 years of age in
19     violation of this Act.
20         (16) The Commission shall, in addition to notifying any
21     appropriate law enforcement agency, submit notices of
22     complaints or violations of Sections 6-29 and 6-29.1 by
23     persons who do not hold a winery shipper's license under
24     this amendatory Act to the Illinois Attorney General and to
25     the U.S. Department of Treasury's Alcohol and Tobacco Tax
26     and Trade Bureau.

 

 

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1         (17) (A) A person licensed to make wine under the laws
2     of another state who has a winery shipper's license under
3     this amendatory Act and annually produces less than 25,000
4     gallons of wine or a person who has a first-class or
5     second-class wine manufacturer's license, a first-class or
6     second-class wine-maker's license, or a limited wine
7     manufacturer's license under this Act and annually
8     produces less than 25,000 gallons of wine may make
9     application to the Commission for a self-distribution
10     exemption to allow the sale of not more than 5,000 gallons
11     of the exemption holder's wine to retail licensees per
12     year.
13             (B) In the application, which shall be sworn under
14         penalty of perjury, such person shall state (1) the
15         date it was established; (2) its volume of production
16         and sales for each year since its establishment; (3)
17         its efforts to establish distributor relationships;
18         (4) that a self-distribution exemption is necessary to
19         facilitate the marketing of its wine; and (5) that it
20         will comply with the liquor and revenue laws of the
21         United States, this State, and any other state where it
22         is licensed.
23             (C) The Commission shall approve the application
24         for a self-distribution exemption if such person: (1)
25         is in compliance with State revenue and liquor laws;
26         (2) is not a member of any affiliated group that

 

 

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1         produces more than 25,000 gallons of wine per annum or
2         produces any other alcoholic liquor; (3) will not
3         annually produce for sale more than 25,000 gallons of
4         wine; and (4) will not annually sell more than 5,000
5         gallons of its wine to retail licensees.
6             (D) A self-distribution exemption holder shall
7         annually certify to the Commission its production of
8         wine in the previous 12 months and its anticipated
9         production and sales for the next 12 months. The
10         Commission may fine, suspend, or revoke a
11         self-distribution exemption after a hearing if it
12         finds that the exemption holder has made a material
13         misrepresentation in its application, violated a
14         revenue or liquor law of Illinois, exceeded production
15         of 25,000 gallons of wine in any calendar year, or
16         become part of an affiliated group producing more than
17         25,000 gallons of wine or any other alcoholic liquor.
18             (E) Except in hearings for violations of this Act
19         or amendatory Act or a bona fide investigation by duly
20         sworn law enforcement officials, the Commission, or
21         its agents, the Commission shall maintain the
22         production and sales information of a
23         self-distribution exemption holder as confidential and
24         shall not release such information to any person.
25             (F) The Commission shall issue regulations
26         governing self-distribution exemptions consistent with

 

 

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1         this Section and this Act.
2             (G) Nothing in this subsection (17) shall prohibit
3         a self-distribution exemption holder from entering
4         into or simultaneously having a distribution agreement
5         with a licensed Illinois distributor.
6             (H) It is the intent of this subsection (17) to
7         promote and continue orderly markets. The General
8         Assembly finds that in order to preserve Illinois'
9         regulatory distribution system it is necessary to
10         create an exception for smaller makers of wine as their
11         wines are frequently adjusted in varietals, mixes,
12         vintages, and taste to find and create market niches
13         sometimes too small for distributor or importing
14         distributor business strategies. Limited
15         self-distribution rights will afford and allow smaller
16         makers of wine access to the marketplace in order to
17         develop a customer base without impairing the
18         integrity of the 3-tier system.
19     (b) On or before April 30, 1999, the Commission shall
20 present a written report to the Governor and the General
21 Assembly that shall be based on a study of the impact of this
22 amendatory Act of 1998 on the business of soliciting, selling,
23 and shipping alcoholic liquor from outside of this State
24 directly to residents of this State.
25     As part of its report, the Commission shall provide the
26 following information:

 

 

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1         (i) the amount of State excise and sales tax revenues
2     generated as a result of this amendatory Act of 1998;
3         (ii) the amount of licensing fees received as a result
4     of this amendatory Act of 1998;
5         (iii) the number of reported violations, the number of
6     cease and desist notices issued by the Commission, the
7     number of notices of violations issued to the Department of
8     Revenue, and the number of notices and complaints of
9     violations to law enforcement officials.
10 (Source: P.A. 95-634, eff. 6-1-08.)
 
11     (235 ILCS 5/6-16.1)
12     Sec. 6-16.1. Enforcement actions.
13     (a) A licensee or an officer, associate, member,
14 representative, agent, or employee of a licensee may sell,
15 give, or deliver alcoholic liquor to a person under the age of
16 21 years or authorize the sale, gift, or delivery of alcoholic
17 liquor to a person under the age of 21 years pursuant to a plan
18 or action to investigate, patrol, or otherwise conduct a "sting
19 operation" or enforcement action against a person employed by
20 the licensee or on any licensed premises if the licensee or
21 officer, associate, member, representative, agent, or employee
22 of the licensee provides written notice, at least 14 days
23 before the "sting operation" or enforcement action, unless
24 governing body of the municipality or county having
25 jurisdiction sets a shorter period by ordinance, to the law

 

 

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1 enforcement agency having jurisdiction, the local liquor
2 control commissioner, or both. Notice provided under this
3 Section shall be valid for a "sting operation" or enforcement
4 action conducted within 60 days of the provision of that
5 notice, unless the governing body of the municipality or county
6 having jurisdiction sets a shorter period by ordinance.
7     (b) A local liquor control commission or unit of local
8 government that conducts alcohol and tobacco compliance
9 operations shall establish a policy and standards for alcohol
10 and tobacco compliance operations to investigate whether a
11 licensee is furnishing (1) alcoholic liquor to persons under 21
12 years of age in violation of this Act or (2) tobacco to persons
13 in violation of the Sale and Distribution of Tobacco Products
14 to Minors Act.
15     (c) The Illinois Law Enforcement Training Standards Board
16 shall develop a model policy and guidelines for the operation
17 of alcohol and tobacco compliance checks by local law
18 enforcement officers. The Illinois Law Enforcement Training
19 Standards Board shall also require the supervising officers of
20 such compliance checks to have met a minimum training standard
21 as determined by the Board. The Board shall have the right to
22 waive any training based on current written policies and
23 procedures for alcohol and tobacco compliance check operations
24 and in-service training already administered by the local law
25 enforcement agency, department, or office.
26     (d) The provisions of subsections (b) and (c) do not apply

 

 

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1 to a home rule unit with more than 2,000,000 inhabitants.
2     (e) A home rule unit, other than a home rule unit with more
3 than 2,000,000 inhabitants, may not regulate enforcement
4 actions in a manner inconsistent with the regulation of
5 enforcement actions under this Section. This subsection (e) is
6 a limitation under subsection (i) of Section 6 of Article VII
7 of the Illinois Constitution on the concurrent exercise by home
8 rule units of powers and functions exercised by the State.
9     (f) A licensee who is the subject of an enforcement action
10 or "sting operation" under this Section and is found, pursuant
11 to the enforcement action, to be in compliance with this Act
12 shall be notified by the enforcement agency action that no
13 violation was found within 30 days after the finding.
14 (Source: P.A. 92-503, eff. 1-1-02; 93-1057, eff. 12-2-04.)
 
15     Section 10. The Sale of Tobacco to Minors Act is amended by
16 changing the title of the Act and Sections 0.01 and 1 as
17 follows:
 
18     (720 ILCS 675/Act title)
19 An Act to prohibit minors from buying or selling tobacco in
20 any of its forms, to prohibit selling, giving or furnishing
21 tobacco, in any of its forms, to minors, and to prohibit the
22 distribution of tobacco samples and providing penalties
23 therefor.
 

 

 

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1     (720 ILCS 675/0.01)  (from Ch. 23, par. 2356.9)
2     Sec. 0.01. Short title. This Act may be cited as the Sale
3 and Distribution of Tobacco Products to Minors Act.
4 (Source: P.A. 86-1324.)
 
5     (720 ILCS 675/1)  (from Ch. 23, par. 2357)
6     Sec. 1. Prohibition on sale of tobacco to minors;
7 prohibition on the distribution of tobacco samples to any
8 person; vending machines; lunch wagons.
9     (a) No minor under 18 years of age shall buy any tobacco
10 product cigar, cigarette, smokeless tobacco or tobacco in any
11 of its forms. No person shall sell, buy for, distribute samples
12 of or furnish any tobacco product cigar, cigarette, smokeless
13 tobacco or tobacco in any of its forms, to any minor under 18
14 years of age.
15     (a-5) No minor under 16 years of age may sell any tobacco
16 product cigar, cigarette, smokeless tobacco, or tobacco in any
17 of its forms at a retail establishment selling tobacco
18 products. This subsection does not apply to a sales clerk in a
19 family-owned business which can prove that the sales clerk is
20 in fact a son or daughter of the owner.
21     (a-6) A person shall not distribute without charge samples
22 of any tobacco product to any other person, regardless of age:
23 (1) at a retail establishment selling tobacco products; (2)
24 from a lunch wagon; or (3) on a public way as a promotion or
25 advertisement of a tobacco manufacturer or tobacco product.

 

 

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1 This subsection (a-6) applies even if the person who is
2 intended to receive the tobacco product purchased another
3 product from the person intending to distribute the tobacco
4 product.
5     For the purpose of this Section: ,
6          "Lunch wagon" means a mobile vehicle designed and
7     constructed to transport food and from which food is sold
8     to the general public.
9         "Smokeless "smokeless tobacco" means any tobacco
10     products that are suitable for dipping or chewing.
11         "Tobacco product" means any cigar, cigarette,
12     smokeless tobacco, or tobacco in any of its forms.
13     (b) Tobacco products listed above may be sold through a
14 vending machine only in the following locations:
15         (1) Factories, businesses, offices, private clubs, and
16     other places not open to the general public.
17         (2) Places to which minors under 18 years of age are
18     not permitted access.
19         (3) Places where alcoholic beverages are sold and
20     consumed on the premises.
21         (4) Places where the vending machine is under the
22     direct supervision of the owner of the establishment or an
23     employee over 18 years of age. The sale of tobacco products
24     from a vending machine under direct supervision of the
25     owner or an employee of the establishment is considered a
26     sale of tobacco products by that person. As used in this

 

 

HB5366 - 19 - LRB095 17543 RLC 43617 b

1     subdivision, "direct supervision" means that the owner or
2     employee has an unimpeded line of sight to the vending
3     machine.
4         (5) Places where the vending machine can only be
5     operated by the owner or an employee over age 18 either
6     directly or through a remote control device if the device
7     is inaccessible to all customers.
8     (c) (Blank) The sale or distribution at no charge of
9 cigarettes from a lunch wagon engaging in any sales activity
10 within 1,000 feet of any public or private elementary or
11 secondary school grounds is prohibited.
12     For the purpose of this Section, "lunch wagon" means a
13 mobile vehicle designed and constructed to transport food and
14 from which food is sold to the general public.
15 (Source: P.A. 93-284, eff. 1-1-04; 93-886, eff. 1-1-05.)
 
16     Section 15. The Display of Tobacco Products Act is amended
17 by changing Section 15 as follows:
 
18     (720 ILCS 677/15)
19     Sec. 15. Vending machines. This Act does not prohibit the
20 sale of tobacco products from vending machines if the location
21 of the vending machines are in compliance with the provisions
22 of Section 1 of the Sale and Distribution of Tobacco Products
23 to Minors Act.
24 (Source: P.A. 93-886, eff. 1-1-05.)