HB1921 95TH GENERAL ASSEMBLY

LRB095 09522 CMK 29721 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1921

Introduced 2/23/2007, by Rep. Donald L. Moffitt

SYNOPSIS AS INTRODUCED:

New Act
20 ILCS 2905/2.7 new
30 ILCS 105/5.675 new

Creates the Disposable Lighter Surcharge Act. Requires each wholesaler of disposable cigarette lighters to be sold and delivered in Illinois to collect a surcharge of $0.25 per lighter and pay the collected surcharge to the Department of Revenue. Requires each wholesaler of disposable cigarette lighters to make a monthly return to the Department. Requires the Department to deposit the surcharge proceeds into the Fire Truck Revolving Loan Fund, the Ambulance Revolving Loan Fund, and the Fire Service and Small Equipment Fund. Sets forth procedures for the administration of the surcharge. Provides that any wholesaler that violates the Act is guilty of a Class 4 felony. Provides that the Act is repealed on June 30, 2013. Amends the State Fire Marshal Act and the State Finance Act. Requires the Office of the State Fire Marshal to establish and administer a program to award grants to fire departments and fire protection districts for the purchase of small fire-fighting equipment. Creates the Fire Service and Small Equipment Fund. Effective July 1, 2007.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Disposable Lighter Surcharge Act.

Section 5. Definitions. As used in this Section:

(a) "Department" means the Department of Revenue.

(b) "Disposable cigarette lighter" means a device, containing a fixed amount of lighter fluid, that is manufactured for the purpose of lighting any roll for smoking made wholly or in part of tobacco and that is purchased at retail by the consumer.

(c) "Retailer" means any person who engages in the making of transfers of the ownership of, or title to, disposable cigarette lighters to a purchaser in this State for use and not for resale in any form for a valuable consideration.

(d) "Wholesaler" means any person who engages in the making of transfers of ownership of, or title to, disposable cigarette lighters to a retailer for valuable consideration when the lighters are to be sold and delivered to purchasers in this State.

Section 10. Collection of surcharge.

(a) Beginning January 1, 2008 and continuing through December 31, 2012, each wholesaler in this State must collect from each retailer, as a separately stated amount, a surcharge of $0.25 for each disposable cigarette lighter to be sold and delivered by the retailer in this State. The wholesaler must pay the surcharge to the Department. The surcharge owing from a wholesaler, constitutes a debt owed by the wholesaler to the State.

(b) The retailer shall collect from the purchaser the amount of the surcharge paid by the retailer. The retailer must state the surcharge as a distinct item separate and apart from the selling price of the disposable cigarette lighter. The surcharge is not includable in the gross receipts of the retailer subject to the Retailers' Occupation Tax Act, the Use Tax Act, or any locally imposed retailers' occupation tax.

Section 15. Returns by wholesaler.

(a) Each wholesaler of disposable cigarette lighters must make a return to the Department on a monthly basis. Each return made to the Department must state:

(1) the name of the wholesaler and each retailer to whom transfers of disposable cigarette lighters were made;

(2) the address of the wholesaler's and each retailer's principal place of business and the address of the principal place of business (if that is a different address) from which each retailer engages in the business of making retail sales of disposable cigarette lighters;

(3) the total number of disposable cigarette lighters transferred by the wholesaler to each retailer for the preceding calendar quarter;

(4) the amount of surcharge due; and

(5) any other reasonable information that the Department requires.

(b) Notwithstanding any other provision of this Act concerning the time within which a wholesaler may file his or her return, in the case of any wholesaler who ceases to engage in the wholesale transfer of disposable cigarette lighters, the wholesaler must file a final return under this Act with the Department not more than one month after discontinuing that business.

Section 20. Deposit of proceeds. The Department must deposit the net revenue realized for the preceding month from the surcharge collected under Section 10 as follows:

(1) 10% into the Fire Truck Revolving Loan Fund;

(2) 10% into the Ambulance Revolving Loan Fund; and

(3) 80% into the Fire Service and Small Equipment Fund.

Section 25. Application of Retailers' Occupation Tax provisions. All the provisions of the Retailers' Occupation Tax Act that are not inconsistent with this Act apply, as far as practical, to the surcharge imposed by subsection (a) of Section 10 of this Act to the same extent as if those provisions were included in this Act.

Section 30. Hearing; notice. The Department may adopt and enforce any reasonable rules and regulations relating to the administration and enforcement of the surcharge imposed by subsection (a) of Section 10 of this Act that are expedient.

Whenever the Department is required to provide notice to a wholesaler under this Act, the notice may be personally served or given by United States certified or registered mail, addressed to the wholesaler concerned at his or her last known address, and proof of this mailing is sufficient for the purposes of this Act. In the case of a notice of hearing, the notice must be mailed not less than 7 days prior to the date fixed for the hearing.

All hearings provided by the Department under this Act with respect to or concerning a wholesaler having his or her principal place of business in this State other than in Cook County shall be held at the Department's office nearest to the location of the wholesaler's principal place of business. If the wholesaler has his or her principal place of business in Cook County, the hearing shall be held in Cook County. If the wholesaler does not have his or her principal place of business in this State, the hearing shall be held in Sangamon County.

Whenever any proceeding provided by this Act has been begun by the Department or by a person subject thereto and that person subsequently dies or becomes a person under legal disability before the proceeding has been concluded, the legal representative of the deceased person or person under legal disability shall notify the Department of the death or legal disability. The legal representative, as such, shall then be substituted by the Department in place of and for the person. Within 20 days after notice to the legal representative of the time fixed for that purpose, the proceeding may continue in all respects and with like effect as though the person had not died or become a person under legal disability.

Section 35. Administrative procedures. The Illinois Administrative Procedure Act is hereby expressly adopted and applies to all administrative rules and procedures of the Department under this Act, except that: (1) paragraph (b) of Section 4 of the Illinois Administrative Procedure Act does not apply to final orders, decisions, and opinions of the Department; (2) subparagraph (a)(2) of Section 4 of the Illinois Administrative Procedure Act does not apply to forms established by the Department for use under this Act; and (3) the provisions of Section 13 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded and not applicable to the Department under this Act.

Section 40. Review under Administrative Review Law.

(a) The circuit court of any county in which a hearing is held has the power to review all final administrative decisions of the Department in administering the surcharge imposed under subsection (a) of Section 10 of this Act. If, however, the administrative proceeding that is to be reviewed judicially is a claim for refund proceeding commenced under this Act and Section 2a of the State Officers and Employees Money Disposition Act, the circuit court having jurisdiction over the action for judicial review under this Section and under the Administrative Review Law shall be the same court that entered the temporary restraining order or preliminary injunction that is provided for in that Section 2a, and that enables the claim proceeding to be processed and disposed of as a claim for refund proceeding other than as a claim for credit proceeding.

(b) The provisions of the Administrative Review Law, and the rules adopted pursuant thereto, apply to and govern all proceedings for the judicial review of final administrative decisions of the Department under this Act. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.

(c) Service of summons issued in any action to review a final administrative decision upon the Director or Assistant Director of Revenue shall be service upon the Department. The Department shall certify the record of its proceedings if the taxpayer pays to it the sum of $0.75 per page of testimony taken before the Department and $0.25 per page of all other matters contained in the record, except that these charges may be waived if the Department is satisfied that the aggrieved party cannot afford to pay these charges.

Section 45. Penalty. Any wholesaler who fails to make a return, who makes a fraudulent return, or who willfully violates any rule or regulation of the Department for the administration and enforcement of the surcharge imposed by this Act, is guilty of a Class 4 felony.

Section 50. Repeal. This Act is repealed on June 30, 2013.

Section 900. The State Fire Marshal Act is amended by adding Section 2.7 as follows:

(20 ILCS 2905/2.7 new)

Sec. 2.7. Small Fire-fighting Equipment Grant Program.

(a) The Office shall establish and administer a Small Fire-fighting Equipment Grant Program to award grants to fire departments and fire protection districts for the purchase of small fire-fighting equipment.

(b) The Fire Service and Small Equipment Fund is created as a special fund in the State Treasury. From appropriations, the Office may expend moneys from the Fund for the grant program under subsection (a). Moneys received for the purposes of this Section, including, without limitation, proceeds received under the Disposable Lighter Surcharge Act and gifts, grants, and awards from any public or private entity must be deposited into the Fund. Any interest earned on moneys in the Fund must be deposited into the Fund.

(c) As used in this Section, "small fire-fighting equipment" includes, without limitation, turnout gear, air packs, thermal imaging cameras, jaws of life, and other fire-fighting equipment, as determined by the State Fire Marshal.

(d) The Office shall adopt any rules necessary for the implementation and administration of this Section.

Section 905. The State Finance Act is amended by adding Section 5.675 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The Fire Service and Small Equipment Fund.

Section 999. Effective date. This Act takes effect July 1, 2007.