Except as otherwise provided in this Section, every applicant who is required
to procure a distributor's license shall file with his or her application a
joint and several bond. The 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, conditioned upon the true and faithful
compliance by the licensee with all of the provisions of this Act. The
Department shall fix the amount of the bond for each applicant, taking into
consideration the amount of money expected to become due from the applicant
under this Act. The amount of bond required by the Department shall be an
amount that, in its opinion, will protect the State of Illinois against failure
to pay the amount that may become due from the applicant under this Act, but
the amount of the security required by the Department shall not exceed 3 times
the amount of the applicant's average monthly tax liability, or $50,000,
whichever amount is lower. The bond, a reissue, or a substitute shall be kept
in full force and effect during the entire period covered by the license. A
separate application for license shall be made, and bond filed,
for each place of business at which a person who is required to procure a
distributor's license proposes to engage in business as a distributor under this Act.
The Department, upon receipt of an application and bond in proper form,
shall issue to the applicant a license, in a form prescribed by the
Department, which shall permit the applicant to whom it is issued
to engage in business as a distributor at the place shown on his or her
application. The license shall be issued by the Department without charge
or cost to the applicant. No license issued under this Act is
transferable or assignable. The license shall be conspicuously displayed
in the place of business conducted by the licensee under the
license.
The bonding requirement in this Section does not apply to an applicant
for a distributor's license who is already bonded under the Cigarette
Tax Act or the Cigarette Use Tax Act.
Licenses issued by the Department under this Act shall be valid for a period
not to exceed one year after issuance unless sooner revoked, canceled, or
suspended as provided in this Act.
No license shall be issued to any person who is in default to the State
of Illinois for moneys due under this Act or any other tax Act administered
by the Department.
The Department may, in its discretion, upon application, authorize the
payment of the tax imposed under Section 10-10 by any distributor or
manufacturer not otherwise subject to the tax imposed under this Act who, to
the satisfaction of the Department, furnishes adequate security to ensure
payment of the tax. The distributor or manufacturer shall be issued, without
charge, a license to remit the tax. When so authorized, it shall be the duty
of the distributor or manufacturer to remit the tax imposed upon the wholesale
price of tobacco products sold or otherwise disposed of to retailers or
consumers located in this State, in the
same manner and subject to the same requirements as any other
distributor or
manufacturer licensed under this Act.
The Department may revoke, suspend, or cancel the license of a distributor
of roll-your-own tobacco (as that term is used in Section 10 of the Tobacco
Product
Manufacturers' Escrow Act) under this Act if the tobacco product manufacturer,
as
defined in Section 10 of the Tobacco Product Manufacturers' Escrow Act, that
made or sold the roll-your-own tobacco has failed to become a participating
manufacturer, as defined in subdivision (a)(1) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, or has failed to create a qualified escrow
fund for any roll-your-own tobacco manufactured by the tobacco product
manufacturer
and sold in this State or otherwise failed to bring itself into compliance with
subdivision (a)(2) of Section 15
of the Tobacco Product Manufacturers' Escrow Act.
Any person aggrieved by any decision of the Department under this Section
may, within 20 days after notice of that decision, protest and request a
hearing, whereupon the Department must give notice to that person of the time
and place fixed for the hearing and must 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 such a protest within 20 days,
the Department's decision becomes final without any further determination
being made or notice given.
(Source: P.A. 98-1055, eff. 1-1-16 .)
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