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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 3. The Retailers' Occupation Tax Act is amended by
5 changing Section 2a and by adding Section 13.7 as follows:
 
6     (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
7     Sec. 2a. It is unlawful for any person to engage in the
8 business of selling tangible personal property at retail in
9 this State without a certificate of registration from the
10 Department. Application for a certificate of registration
11 shall be made to the Department upon forms furnished by it.
12 Each such application shall be signed and verified and shall
13 state: (1) the name and social security number of the
14 applicant; (2) the address of his principal place of business;
15 (3) the address of the principal place of business from which
16 he engages in the business of selling tangible personal
17 property at retail in this State and the addresses of all other
18 places of business, if any (enumerating such addresses, if any,
19 in a separate list attached to and made a part of the
20 application), from which he engages in the business of selling
21 tangible personal property at retail in this State; (4) the
22 name and address of the person or persons who will be
23 responsible for filing returns and payment of taxes due under

 

 

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1 this Act; (5) in the case of a corporation, the name, title,
2 and social security number of each corporate officer; (6) in
3 the case of a limited liability company, the name, social
4 security number, and FEIN number of each manager and member;
5 and (7) such other information as the Department may reasonably
6 require. The application shall contain an acceptance of
7 responsibility signed by the person or persons who will be
8 responsible for filing returns and payment of the taxes due
9 under this Act. If the applicant will sell tangible personal
10 property at retail through vending machines, his application to
11 register shall indicate the number of vending machines to be so
12 operated; and thereafter, he shall notify the Department by
13 January 31 of the number of vending machines which such person
14 was using in his business of selling tangible personal property
15 at retail on the preceding December 31.
16     The Department may deny a certificate of registration to
17 any applicant if the owner, any partner, any manager or member
18 of a limited liability company, or a corporate officer of the
19 applicant, is or has been the owner, a partner, a manager or
20 member of a limited liability company, or a corporate officer,
21 of another retailer that is in default for moneys due under
22 this Act.
23     Every applicant for a certificate of registration
24 hereunder shall, at the time of filing such application,
25 furnish a bond from a surety company authorized to do business
26 in the State of Illinois, or an irrevocable bank letter of

 

 

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1 credit or a bond signed by 2 personal sureties who have filed,
2 with the Department, sworn statements disclosing net assets
3 equal to at least 3 times the amount of the bond to be required
4 of such applicant, or a bond secured by an assignment of a bank
5 account or certificate of deposit, stocks or bonds, conditioned
6 upon the applicant paying to the State of Illinois all moneys
7 becoming due under this Act and under any other State tax law
8 or municipal or county tax ordinance or resolution under which
9 the certificate of registration that is issued to the applicant
10 under this Act will permit the applicant to engage in business
11 without registering separately under such other law, ordinance
12 or resolution. The Department shall fix the amount of such
13 security in each case, taking into consideration the amount of
14 money expected to become due from the applicant under this Act
15 and under any other State tax law or municipal or county tax
16 ordinance or resolution under which the certificate of
17 registration that is issued to the applicant under this Act
18 will permit the applicant to engage in business without
19 registering separately under such other law, ordinance or
20 resolution. The amount of security required by the Department
21 shall be such as, in its opinion, will protect the State of
22 Illinois against failure to pay the amount which may become due
23 from the applicant under this Act and under any other State tax
24 law or municipal or county tax ordinance or resolution under
25 which the certificate of registration that is issued to the
26 applicant under this Act will permit the applicant to engage in

 

 

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1 business without registering separately under such other law,
2 ordinance or resolution, but the amount of the security
3 required by the Department shall not exceed three times the
4 amount of the applicant's average monthly tax liability, or
5 $50,000.00, whichever amount is lower.
6     No certificate of registration under this Act shall be
7 issued by the Department until the applicant provides the
8 Department with satisfactory security as herein provided for.
9     Upon receipt of the application for certificate of
10 registration in proper form, and upon approval by the
11 Department of the security furnished by the applicant, the
12 Department shall issue to such applicant a certificate of
13 registration which shall permit the person to whom it is issued
14 to engage in the business of selling tangible personal property
15 at retail in this State. The certificate of registration shall
16 be conspicuously displayed at the place of business which the
17 person so registered states in his application to be the
18 principal place of business from which he engages in the
19 business of selling tangible personal property at retail in
20 this State.
21     No certificate of registration issued to a taxpayer who
22 files returns required by this Act on a monthly basis shall be
23 valid after the expiration of 5 years from the date of its
24 issuance or last renewal. The expiration date of a
25 sub-certificate of registration shall be that of the
26 certificate of registration to which the sub-certificate

 

 

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1 relates. A certificate of registration shall automatically be
2 renewed, subject to revocation as provided by this Act, for an
3 additional 5 years from the date of its expiration unless
4 otherwise notified by the Department as provided by this
5 paragraph. Where a taxpayer to whom a certificate of
6 registration is issued under this Act is in default to the
7 State of Illinois for delinquent returns or for moneys due
8 under this Act or any other State tax law or municipal or
9 county ordinance administered or enforced by the Department,
10 the Department shall, not less than 120 days before the
11 expiration date of such certificate of registration, give
12 notice to the taxpayer to whom the certificate was issued of
13 the account period of the delinquent returns, the amount of
14 tax, penalty and interest due and owing from the taxpayer, and
15 that the certificate of registration shall not be automatically
16 renewed upon its expiration date unless the taxpayer, on or
17 before the date of expiration, has filed and paid the
18 delinquent returns or paid the defaulted amount in full. A
19 taxpayer to whom such a notice is issued shall be deemed an
20 applicant for renewal. The Department shall promulgate
21 regulations establishing procedures for taxpayers who file
22 returns on a monthly basis but desire and qualify to change to
23 a quarterly or yearly filing basis and will no longer be
24 subject to renewal under this Section, and for taxpayers who
25 file returns on a yearly or quarterly basis but who desire or
26 are required to change to a monthly filing basis and will be

 

 

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1 subject to renewal under this Section.
2     The Department may in its discretion approve renewal by an
3 applicant who is in default if, at the time of application for
4 renewal, the applicant files all of the delinquent returns or
5 pays to the Department such percentage of the defaulted amount
6 as may be determined by the Department and agrees in writing to
7 waive all limitations upon the Department for collection of the
8 remaining defaulted amount to the Department over a period not
9 to exceed 5 years from the date of renewal of the certificate;
10 however, no renewal application submitted by an applicant who
11 is in default shall be approved if the immediately preceding
12 renewal by the applicant was conditioned upon the installment
13 payment agreement described in this Section. The payment
14 agreement herein provided for shall be in addition to and not
15 in lieu of the security required by this Section of a taxpayer
16 who is no longer considered a prior continuous compliance
17 taxpayer. The execution of the payment agreement as provided in
18 this Act shall not toll the accrual of interest at the
19 statutory rate.
20     The Department may suspend a certificate of registration if
21 the Department finds that the person to whom the certificate of
22 registration has been issued knowingly sold contraband
23 cigarettes.
24     A certificate of registration issued under this Act more
25 than 5 years before the effective date of this amendatory Act
26 of 1989 shall expire and be subject to the renewal provisions

 

 

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1 of this Section on the next anniversary of the date of issuance
2 of such certificate which occurs more than 6 months after the
3 effective date of this amendatory Act of 1989. A certificate of
4 registration issued less than 5 years before the effective date
5 of this amendatory Act of 1989 shall expire and be subject to
6 the renewal provisions of this Section on the 5th anniversary
7 of the issuance of the certificate.
8     If the person so registered states that he operates other
9 places of business from which he engages in the business of
10 selling tangible personal property at retail in this State, the
11 Department shall furnish him with a sub-certificate of
12 registration for each such place of business, and the applicant
13 shall display the appropriate sub-certificate of registration
14 at each such place of business. All sub-certificates of
15 registration shall bear the same registration number as that
16 appearing upon the certificate of registration to which such
17 sub-certificates relate.
18     If the applicant will sell tangible personal property at
19 retail through vending machines, the Department shall furnish
20 him with a sub-certificate of registration for each such
21 vending machine, and the applicant shall display the
22 appropriate sub-certificate of registration on each such
23 vending machine by attaching the sub-certificate of
24 registration to a conspicuous part of such vending machine.
25     Where the same person engages in 2 or more businesses of
26 selling tangible personal property at retail in this State,

 

 

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1 which businesses are substantially different in character or
2 engaged in under different trade names or engaged in under
3 other substantially dissimilar circumstances (so that it is
4 more practicable, from an accounting, auditing or bookkeeping
5 standpoint, for such businesses to be separately registered),
6 the Department may require or permit such person (subject to
7 the same requirements concerning the furnishing of security as
8 those that are provided for hereinbefore in this Section as to
9 each application for a certificate of registration) to apply
10 for and obtain a separate certificate of registration for each
11 such business or for any of such businesses, under a single
12 certificate of registration supplemented by related
13 sub-certificates of registration.
14     Any person who is registered under the "Retailers'
15 Occupation Tax Act" as of March 8, 1963, and who, during the
16 3-year period immediately prior to March 8, 1963, or during a
17 continuous 3-year period part of which passed immediately
18 before and the remainder of which passes immediately after
19 March 8, 1963, has been so registered continuously and who is
20 determined by the Department not to have been either delinquent
21 or deficient in the payment of tax liability during that period
22 under this Act or under any other State tax law or municipal or
23 county tax ordinance or resolution under which the certificate
24 of registration that is issued to the registrant under this Act
25 will permit the registrant to engage in business without
26 registering separately under such other law, ordinance or

 

 

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1 resolution, shall be considered to be a Prior Continuous
2 Compliance taxpayer. Also any taxpayer who has, as verified by
3 the Department, faithfully and continuously complied with the
4 condition of his bond or other security under the provisions of
5 this Act for a period of 3 consecutive years shall be
6 considered to be a Prior Continuous Compliance taxpayer.
7     Every Prior Continuous Compliance taxpayer shall be exempt
8 from all requirements under this Act concerning the furnishing
9 of security as a condition precedent to his being authorized to
10 engage in the business of selling tangible personal property at
11 retail in this State. This exemption shall continue for each
12 such taxpayer until such time as he may be determined by the
13 Department to be delinquent in the filing of any returns, or is
14 determined by the Department (either through the Department's
15 issuance of a final assessment which has become final under the
16 Act, or by the taxpayer's filing of a return which admits tax
17 that is not paid to be due) to be delinquent or deficient in
18 the paying of any tax under this Act or under any other State
19 tax law or municipal or county tax ordinance or resolution
20 under which the certificate of registration that is issued to
21 the registrant under this Act will permit the registrant to
22 engage in business without registering separately under such
23 other law, ordinance or resolution, at which time that taxpayer
24 shall become subject to all the financial responsibility
25 requirements of this Act and, as a condition of being allowed
26 to continue to engage in the business of selling tangible

 

 

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1 personal property at retail, shall be required to post bond or
2 other acceptable security with the Department covering
3 liability which such taxpayer may thereafter incur. Any
4 taxpayer who fails to pay an admitted or established liability
5 under this Act may also be required to post bond or other
6 acceptable security with this Department guaranteeing the
7 payment of such admitted or established liability.
8     No certificate of registration shall be issued to any
9 person who is in default to the State of Illinois for moneys
10 due under this Act or under any other State tax law or
11 municipal or county tax ordinance or resolution under which the
12 certificate of registration that is issued to the applicant
13 under this Act will permit the applicant to engage in business
14 without registering separately under such other law, ordinance
15 or resolution.
16     Any person aggrieved by any decision of the Department
17 under this Section may, within 20 days after notice of such
18 decision, protest and request a hearing, whereupon the
19 Department shall give notice to such person of the time and
20 place fixed for such hearing and shall hold a hearing in
21 conformity with the provisions of this Act and then issue its
22 final administrative decision in the matter to such person. In
23 the absence of such a protest within 20 days, the Department's
24 decision shall become final without any further determination
25 being made or notice given.
26     With respect to security other than bonds (upon which the

 

 

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1 Department may sue in the event of a forfeiture), if the
2 taxpayer fails to pay, when due, any amount whose payment such
3 security guarantees, the Department shall, after such
4 liability is admitted by the taxpayer or established by the
5 Department through the issuance of a final assessment that has
6 become final under the law, convert the security which that
7 taxpayer has furnished into money for the State, after first
8 giving the taxpayer at least 10 days' written notice, by
9 registered or certified mail, to pay the liability or forfeit
10 such security to the Department. If the security consists of
11 stocks or bonds or other securities which are listed on a
12 public exchange, the Department shall sell such securities
13 through such public exchange. If the security consists of an
14 irrevocable bank letter of credit, the Department shall convert
15 the security in the manner provided for in the Uniform
16 Commercial Code. If the security consists of a bank certificate
17 of deposit, the Department shall convert the security into
18 money by demanding and collecting the amount of such bank
19 certificate of deposit from the bank which issued such
20 certificate. If the security consists of a type of stocks or
21 other securities which are not listed on a public exchange, the
22 Department shall sell such security to the highest and best
23 bidder after giving at least 10 days' notice of the date, time
24 and place of the intended sale by publication in the "State
25 Official Newspaper". If the Department realizes more than the
26 amount of such liability from the security, plus the expenses

 

 

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1 incurred by the Department in converting the security into
2 money, the Department shall pay such excess to the taxpayer who
3 furnished such security, and the balance shall be paid into the
4 State Treasury.
5     The Department shall discharge any surety and shall release
6 and return any security deposited, assigned, pledged or
7 otherwise provided to it by a taxpayer under this Section
8 within 30 days after:
9         (1) such taxpayer becomes a Prior Continuous
10     Compliance taxpayer; or
11         (2) such taxpayer has ceased to collect receipts on
12     which he is required to remit tax to the Department, has
13     filed a final tax return, and has paid to the Department an
14     amount sufficient to discharge his remaining tax
15     liability, as determined by the Department, under this Act
16     and under every other State tax law or municipal or county
17     tax ordinance or resolution under which the certificate of
18     registration issued under this Act permits the registrant
19     to engage in business without registering separately under
20     such other law, ordinance or resolution. The Department
21     shall make a final determination of the taxpayer's
22     outstanding tax liability as expeditiously as possible
23     after his final tax return has been filed; if the
24     Department cannot make such final determination within 45
25     days after receiving the final tax return, within such
26     period it shall so notify the taxpayer, stating its reasons

 

 

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1     therefor.
2 (Source: P.A. 90-491, eff. 1-1-98; 91-357, eff. 7-29-99.)
 
3     (35 ILCS 120/13.7 new)
4     Sec. 13.7. Rulemaking. Rulemaking authority to implement
5 this amendatory Act of the 95th General Assembly, if any, is
6 conditioned on the rules being adopted in accordance with all
7 provisions of the Illinois Administrative Procedure Act and all
8 rules and procedures of the Joint Committee on Administrative
9 Rules; any purported rule not so adopted, for whatever reason,
10 is unauthorized.
 
11     Section 5. The Cigarette Tax Act is amended by changing
12 Sections 1, 3, 3-10, 4, 20, and 21 and by adding Sections 3-15,
13 4d, and 29.5 as follows:
 
14     (35 ILCS 130/1)  (from Ch. 120, par. 453.1)
15     Sec. 1. For the purposes of this Act:
16     "Brand Style" means a variety of cigarettes distinguished
17 by the tobacco used, tar and nicotine content, flavoring used,
18 size of the cigarette, filtration on the cigarette or
19 packaging.
20     "Cigarette", means any when used in this Act, shall be
21 construed to mean: Any roll for smoking made wholly or in part
22 of tobacco irrespective of size or shape and whether or not
23 such tobacco is flavored, adulterated or mixed with any other

 

 

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1 ingredient, and the wrapper or cover of which is made of paper
2 or any other substance or material except tobacco.
3     "Contraband cigarettes" means:
4         (a) cigarettes that do not bear a required tax stamp
5     under this Act;
6         (b) cigarettes for which any required federal taxes
7     have not been paid;
8         (c) cigarettes that bear a counterfeit tax stamp;
9         (d) cigarettes that are manufactured, fabricated,
10     assembled, processed, packaged, or labeled by any person
11     other than (i) the owner of the trademark rights in the
12     cigarette brand or (ii) a person that is directly or
13     indirectly authorized by such owner;
14         (e) cigarettes imported into the United States, or
15     otherwise distributed, in violation of the federal
16     Imported Cigarette Compliance Act of 2000 (Title IV of
17     Public Law 106-476); or
18         (f) cigarettes that have false manufacturing labels.
19     "Person" means any natural individual, firm, partnership,
20 association, joint stock company, joint adventure, public or
21 private corporation, however formed, limited liability
22 company, or a receiver, executor, administrator, trustee,
23 guardian or other representative appointed by order of any
24 court.
25     "Prior Continuous Compliance Taxpayer" means any person
26 who is licensed under this Act and who, having been a licensee

 

 

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1 for a continuous period of 5 years, is determined by the
2 Department not to have been either delinquent or deficient in
3 the payment of tax liability during that period or otherwise in
4 violation of this Act. Also, any taxpayer who has, as verified
5 by the Department, continuously complied with the condition of
6 his bond or other security under provisions of this Act for a
7 period of 5 consecutive years shall be considered to be a
8 "Prior continuous compliance taxpayer". In calculating the
9 consecutive period of time described herein for qualification
10 as a "prior continuous compliance taxpayer", a consecutive
11 period of time of qualifying compliance immediately prior to
12 the effective date of this amendatory Act of 1987 shall be
13 credited to any licensee who became licensed on or before the
14 effective date of this amendatory Act of 1987.
15     "Department" means the Department of Revenue.
16     "Sale" means any transfer, exchange or barter in any manner
17 or by any means whatsoever for a consideration, and includes
18 and means all sales made by any person.
19     "Original Package" means the individual packet, box or
20 other container whatsoever used to contain and to convey
21 cigarettes to the consumer.
22     "Distributor" means any and each of the following:
23     (1) Any person engaged in the business of selling
24 cigarettes in this State who brings or causes to be brought
25 into this State from without this State any original packages
26 of cigarettes, on which original packages there is no

 

 

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1 authorized evidence underneath a sealed transparent wrapper
2 showing that the tax liability imposed by this Act has been
3 paid or assumed by the out-of-State seller of such cigarettes,
4 for sale or other disposition in the course of such business.
5     (2) Any person who makes, manufactures or fabricates
6 cigarettes in this State for sale in this State, except a
7 person who makes, manufactures or fabricates cigarettes as a
8 part of a correctional industries program for sale to residents
9 incarcerated in penal institutions or resident patients of a
10 State-operated mental health facility.
11     (3) Any person who makes, manufactures or fabricates
12 cigarettes outside this State, which cigarettes are placed in
13 original packages contained in sealed transparent wrappers,
14 for delivery or shipment into this State, and who elects to
15 qualify and is accepted by the Department as a distributor
16 under Section 4b of this Act.
17     "Place of business" shall mean and include any place where
18 cigarettes are sold or where cigarettes are manufactured,
19 stored or kept for the purpose of sale or consumption,
20 including any vessel, vehicle, airplane, train or vending
21 machine.
22     "Business" means any trade, occupation, activity or
23 enterprise engaged in for the purpose of selling cigarettes in
24 this State.
25     "Retailer" means any person who engages in the making of
26 transfers of the ownership of, or title to, cigarettes to a

 

 

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1 purchaser for use or consumption and not for resale in any
2 form, for a valuable consideration. "Retailer" does not include
3 a person:
4         (1) who transfers to residents incarcerated in penal
5     institutions or resident patients of a State-operated
6     mental health facility ownership of cigarettes made,
7     manufactured, or fabricated as part of a correctional
8     industries program; or
9         (2) who transfers cigarettes to a not-for-profit
10     research institution that conducts tests concerning the
11     health effects of tobacco products and who does not offer
12     the cigarettes for resale.
13     "Retailer" shall be construed to include any person who
14 engages in the making of transfers of the ownership of, or
15 title to, cigarettes to a purchaser, for use or consumption by
16 any other person to whom such purchaser may transfer the
17 cigarettes without a valuable consideration, except a person
18 who transfers to residents incarcerated in penal institutions
19 or resident patients of a State-operated mental health facility
20 ownership of cigarettes made, manufactured or fabricated as
21 part of a correctional industries program.
22     "Stamp" or "stamps" mean the indicia required to be affixed
23 on a pack of cigarettes that evidence payment of the tax on
24 cigarettes under Section 2 of this Act (35 ILCS 130/2), or the
25 indicia used to indicate that the cigarettes are intended for a
26 sale or distribution within this State that is exempt from

 

 

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1 State tax under any applicable provision of law.
2     "Within this State" means within the exterior limits of the
3 State of Illinois and includes all territory within these
4 limits owned by or ceded to the United States of America.
5     "Related party" means any person that is associated with
6 any other person because he or she:
7         (a) is an officer or director of a business;
8         (b) is legally recognized as a partner in business; or
9         (c) is directly or indirectly controlled by another.
10 (Source: P.A. 95-462, eff. 8-27-07.)
 
11     (35 ILCS 130/3)  (from Ch. 120, par. 453.3)
12     Sec. 3. Affixing tax stamp; remitting tax to the
13 Department. Payment of the taxes imposed by Section 2 of this
14 Act shall (except as hereinafter provided) be evidenced by
15 revenue tax stamps affixed to each original package of
16 cigarettes. Each distributor of cigarettes, before delivering
17 or causing to be delivered any original package of cigarettes
18 in this State to a purchaser, shall firmly affix a proper stamp
19 or stamps to each such package, or (in case of manufacturers of
20 cigarettes in original packages which are contained inside a
21 sealed transparent wrapper) shall imprint the required
22 language on the original package of cigarettes beneath such
23 outside wrapper, as hereinafter provided. Any stamp required by
24 this Act shall note whether the State tax under Section 2 of
25 this Act (35 ILCS 130/2) was paid.

 

 

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1     No stamp or imprint may be affixed to, or made upon, any
2 package of cigarettes unless that package complies with all
3 requirements of the federal Cigarette Labeling and Advertising
4 Act, 15 U.S.C. 1331 and following, for the placement of labels,
5 warnings, or any other information upon a package of cigarettes
6 that is sold within the United States. Under the authority of
7 Section 6, the Department shall revoke the license of any
8 distributor that is determined to have violated this paragraph.
9 A person may not affix a stamp on a package of cigarettes,
10 cigarette papers, wrappers, or tubes if that individual package
11 has been marked for export outside the United States with a
12 label or notice in compliance with Section 290.185 of Title 27
13 of the Code of Federal Regulations. It is not a defense to a
14 proceeding for violation of this paragraph that the label or
15 notice has been removed, mutilated, obliterated, or altered in
16 any manner.
17     Only distributors licensed under this Act or out-of-state
18 manufacturers holding a permit under this Act may receive
19 unstamped packs of cigarettes. Prior to shipment to another
20 person, each licensed distributor or out-of-state manufacturer
21 holding a permit shall apply a stamp to each pack of cigarettes
22 imported, distributed, or sold whether or not such cigarettes
23 are subject to State tax under Section 2 of this Act (35 ILCS
24 130/2) or any other provision of State law, provided that a
25 distributor or out-of-state manufacturer may only apply a tax
26 stamp to a pack of cigarettes purchased or obtained directly

 

 

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1 from a licensed distributor or an out-of-state manufacturer
2 holding a permit. Only a licensed distributor or an
3 out-of-state manufacturer holding a permit may ship or
4 otherwise cause to be delivered unstamped packs of cigarettes
5 in, into, or from this State, provided that a licensed
6 distributor or an out-of-state manufacturer holding a permit
7 may transport unstamped packs of cigarettes to a facility,
8 wherever located, owned by such distributor or manufacturer.
9 Any person that ships or otherwise causes to be delivered
10 unstamped packs of cigarettes into, within, or from this State
11 shall ensure that the invoice or equivalent documentation and
12 the bill of lading or freight bill for the shipment identifies
13 the true name and address of the cosignor or seller, the true
14 name and address of the cosignee or purchaser, and the quantity
15 by brand style of the cigarettes so transported, provided that
16 this Section shall not be construed as to impose any
17 requirement or liability upon any common or contract carrier.
18     The Department, or any person authorized by the Department,
19 shall sell such stamps only to persons holding valid licenses
20 as distributors under this Act. On and after July 1, 2003,
21 payment for such stamps must be made by means of electronic
22 funds transfer. The Department may refuse to sell stamps to any
23 person who does not comply with the provisions of this Act.
24 Beginning on the effective date of this amendatory Act of the
25 92nd General Assembly and through June 30, 2002, persons
26 holding valid licenses as distributors may purchase cigarette

 

 

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1 tax stamps up to an amount equal to 115% of the distributor's
2 average monthly cigarette tax stamp purchases over the 12
3 calendar months prior to the effective date of this amendatory
4 Act of the 92nd General Assembly.
5     Prior to December 1, 1985, the Department shall allow a
6 distributor 21 days in which to make final payment of the
7 amount to be paid for such stamps, by allowing the distributor
8 to make payment for the stamps at the time of purchasing them
9 with a draft which shall be in such form as the Department
10 prescribes, and which shall be payable within 21 days
11 thereafter: Provided that such distributor has filed with the
12 Department, and has received the Department's approval of, a
13 bond, which is in addition to the bond required under Section 4
14 of this Act, payable to the Department in an amount equal to
15 80% of such distributor's average monthly tax liability to the
16 Department under this Act during the preceding calendar year or
17 $500,000, whichever is less. The Bond shall be joint and
18 several and shall be in the form of a surety company bond in
19 such form as the Department prescribes, or it may be in the
20 form of a bank certificate of deposit or bank letter of credit.
21 The bond shall be conditioned upon the distributor's payment of
22 amount of any 21-day draft which the Department accepts from
23 that distributor for the delivery of stamps to that distributor
24 under this Act. The distributor's failure to pay any such
25 draft, when due, shall also make such distributor automatically
26 liable to the Department for a penalty equal to 25% of the

 

 

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1 amount of such draft.
2     On and after December 1, 1985 and until July 1, 2003, the
3 Department shall allow a distributor 30 days in which to make
4 final payment of the amount to be paid for such stamps, by
5 allowing the distributor to make payment for the stamps at the
6 time of purchasing them with a draft which shall be in such
7 form as the Department prescribes, and which shall be payable
8 within 30 days thereafter, and beginning on January 1, 2003 and
9 thereafter, the draft shall be payable by means of electronic
10 funds transfer: Provided that such distributor has filed with
11 the Department, and has received the Department's approval of,
12 a bond, which is in addition to the bond required under Section
13 4 of this Act, payable to the Department in an amount equal to
14 150% of such distributor's average monthly tax liability to the
15 Department under this Act during the preceding calendar year or
16 $750,000, whichever is less, except that as to bonds filed on
17 or after January 1, 1987, such additional bond shall be in an
18 amount equal to 100% of such distributor's average monthly tax
19 liability under this Act during the preceding calendar year or
20 $750,000, whichever is less. The bond shall be joint and
21 several and shall be in the form of a surety company bond in
22 such form as the Department prescribes, or it may be in the
23 form of a bank certificate of deposit or bank letter of credit.
24 The bond shall be conditioned upon the distributor's payment of
25 the amount of any 30-day draft which the Department accepts
26 from that distributor for the delivery of stamps to that

 

 

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1 distributor under this Act. The distributor's failure to pay
2 any such draft, when due, shall also make such distributor
3 automatically liable to the Department for a penalty equal to
4 25% of the amount of such draft.
5     Every prior continuous compliance taxpayer shall be exempt
6 from all requirements under this Section concerning the
7 furnishing of such bond, as defined in this Section, as a
8 condition precedent to his being authorized to engage in the
9 business licensed under this Act. This exemption shall continue
10 for each such taxpayer until such time as he may be determined
11 by the Department to be delinquent in the filing of any
12 returns, or is determined by the Department (either through the
13 Department's issuance of a final assessment which has become
14 final under the Act, or by the taxpayer's filing of a return
15 which admits tax to be due that is not paid) to be delinquent
16 or deficient in the paying of any tax under this Act, at which
17 time that taxpayer shall become subject to the bond
18 requirements of this Section and, as a condition of being
19 allowed to continue to engage in the business licensed under
20 this Act, shall be required to furnish bond to the Department
21 in such form as provided in this Section. Such taxpayer shall
22 furnish such bond for a period of 2 years, after which, if the
23 taxpayer has not been delinquent in the filing of any returns,
24 or delinquent or deficient in the paying of any tax under this
25 Act, the Department may reinstate such person as a prior
26 continuance compliance taxpayer. Any taxpayer who fails to pay

 

 

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1 an admitted or established liability under this Act may also be
2 required to post bond or other acceptable security with the
3 Department guaranteeing the payment of such admitted or
4 established liability.
5     Any person aggrieved by any decision of the Department
6 under this Section may, within the time allowed by law, protest
7 and request a hearing, whereupon the Department shall give
8 notice and shall hold a hearing in conformity with the
9 provisions of this Act and then issue its final administrative
10 decision in the matter to such person. In the absence of such a
11 protest filed within the time allowed by law, the Department's
12 decision shall become final without any further determination
13 being made or notice given.
14     The Department shall discharge any surety and shall release
15 and return any bond or security deposited, assigned, pledged,
16 or otherwise provided to it by a taxpayer under this Section
17 within 30 days after:
18     (1) Such taxpayer becomes a prior continuous compliance
19 taxpayer; or
20     (2) Such taxpayer has ceased to collect receipts on which
21 he is required to remit tax to the Department, has filed a
22 final tax return, and has paid to the Department an amount
23 sufficient to discharge his remaining tax liability as
24 determined by the Department under this Act. The Department
25 shall make a final determination of the taxpayer's outstanding
26 tax liability as expeditiously as possible after his final tax

 

 

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1 return has been filed. If the Department cannot make such final
2 determination within 45 days after receiving the final tax
3 return, within such period it shall so notify the taxpayer,
4 stating its reasons therefor.
5     The Department may authorize distributors to affix revenue
6 tax stamps by imprinting tax meter stamps upon original
7 packages of cigarettes. The Department shall adopt rules and
8 regulations relating to the imprinting of such tax meter stamps
9 as will result in payment of the proper taxes as herein
10 imposed. No distributor may affix revenue tax stamps to
11 original packages of cigarettes by imprinting tax meter stamps
12 thereon unless such distributor has first obtained permission
13 from the Department to employ this method of affixation. The
14 Department shall regulate the use of tax meters and may, to
15 assure the proper collection of the taxes imposed by this Act,
16 revoke or suspend the privilege, theretofore granted by the
17 Department to any distributor, to imprint tax meter stamps upon
18 original packages of cigarettes.
19     Illinois cigarette manufacturers who place their
20 cigarettes in original packages which are contained inside a
21 sealed transparent wrapper, and similar out-of-State cigarette
22 manufacturers who elect to qualify and are accepted by the
23 Department as distributors under Section 4b of this Act, shall
24 pay the taxes imposed by this Act by remitting the amount
25 thereof to the Department by the 5th day of each month covering
26 cigarettes shipped or otherwise delivered in Illinois to

 

 

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1 purchasers during the preceding calendar month. Such
2 manufacturers of cigarettes in original packages which are
3 contained inside a sealed transparent wrapper, before
4 delivering such cigarettes or causing such cigarettes to be
5 delivered in this State to purchasers, shall evidence their
6 obligation to remit the taxes due with respect to such
7 cigarettes by imprinting language to be prescribed by the
8 Department on each original package of such cigarettes
9 underneath the sealed transparent outside wrapper of such
10 original package, in such place thereon and in such manner as
11 the Department may designate. Such imprinted language shall
12 acknowledge the manufacturer's payment of or liability for the
13 tax imposed by this Act with respect to the distribution of
14 such cigarettes.
15     A distributor shall not affix, or cause to be affixed, any
16 stamp or imprint to a package of cigarettes, as provided for in
17 this Section, if the tobacco product manufacturer, as defined
18 in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
19 that made or sold the cigarettes has failed to become a
20 participating manufacturer, as defined in subdivision (a)(1)
21 of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
22 or has failed to create a qualified escrow fund for any
23 cigarettes manufactured by the tobacco product manufacturer
24 and sold in this State or otherwise failed to bring itself into
25 compliance with subdivision (a)(2) of Section 15 of the Tobacco
26 Product Manufacturers' Escrow Act.

 

 

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1 (Source: P.A. 92-322, eff. 1-1-02; 92-536, eff. 6-6-02; 92-737,
2 eff. 7-25-02; 93-22, eff. 6-20-03.)
 
3     (35 ILCS 130/3-10)
4     Sec. 3-10. Cigarette enforcement.
5     (a) Prohibitions. It is unlawful for any person:
6         (1) to sell or distribute in this State; to acquire,
7     hold, own, possess, or transport, for sale or distribution
8     in this State; or to import, or cause to be imported into
9     this State for sale or distribution in this State:
10             (A) any cigarettes the package of which:
11                 (i) bears any statement, label, stamp,
12             sticker, or notice indicating that the
13             manufacturer did not intend the cigarettes to be
14             sold, distributed, or used in the United States,
15             including but not limited to labels stating "For
16             Export Only", "U.S. Tax Exempt", "For Use Outside
17             U.S.", or similar wording; or
18                 (ii) does not comply with:
19                     (aa) all requirements imposed by or
20                 pursuant to federal law regarding warnings and
21                 other information on packages of cigarettes
22                 manufactured, packaged, or imported for sale,
23                 distribution, or use in the United States,
24                 including but not limited to the precise
25                 warning labels specified in the federal

 

 

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1                 Cigarette Labeling and Advertising Act, 15
2                 U.S.C. 1333; and
3                     (bb) all federal trademark and copyright
4                 laws;
5             (B) any cigarettes imported into the United States
6         in violation of 26 U.S.C. 5754 or any other federal
7         law, or implementing federal regulations;
8             (C) any cigarettes that such person otherwise
9         knows or has reason to know the manufacturer did not
10         intend to be sold, distributed, or used in the United
11         States; or
12             (D) any cigarettes for which there has not been
13         submitted to the Secretary of the U.S. Department of
14         Health and Human Services the list or lists of the
15         ingredients added to tobacco in the manufacture of the
16         cigarettes required by the federal Cigarette Labeling
17         and Advertising Act, 15 U.S.C. 1335a;
18         (2) to alter the package of any cigarettes, prior to
19     sale or distribution to the ultimate consumer, so as to
20     remove, conceal, or obscure:
21             (A) any statement, label, stamp, sticker, or
22         notice described in subdivision (a)(1)(A)(i) of this
23         Section;
24             (B) any health warning that is not specified in, or
25         does not conform with the requirements of, the federal
26         Cigarette Labeling and Advertising Act, 15 U.S.C.

 

 

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1         1333; or
2         (3) to affix any stamp required pursuant to this Act to
3     the package of any cigarettes described in subdivision
4     (a)(1) of this Section or altered in violation of
5     subdivision (a)(2); or .
6         (4) to knowingly possess, or possess for sale,
7     contraband cigarettes.
8     (b) Documentation. On the first business day of each month,
9 each person licensed to affix the State tax stamp to cigarettes
10 shall file with the Department, for all cigarettes imported
11 into the United States to which the person has affixed the tax
12 stamp in the preceding month:
13         (1) a copy of:
14             (A) the permit issued pursuant to the Internal
15         Revenue Code, 26 U.S.C. 5713, to the person importing
16         the cigarettes into the United States allowing the
17         person to import the cigarettes; and
18             (B) the customs form containing, with respect to
19         the cigarettes, the internal revenue tax information
20         required by the U.S. Bureau of Alcohol, Tobacco and
21         Firearms;
22         (2) a statement, signed by the person under penalty of
23     perjury, which shall be treated as confidential by the
24     Department and exempt from disclosure under the Freedom of
25     Information Act, identifying the brand and brand styles of
26     all such cigarettes, the quantity of each brand style of

 

 

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1     such cigarettes, the supplier of such cigarettes, and the
2     person or persons, if any, to whom such cigarettes have
3     been conveyed for resale; and a separate statement, signed
4     by the individual under penalty of perjury, which shall not
5     be treated as confidential or exempt from disclosure,
6     separately identifying the brands and brand styles of such
7     cigarettes; and
8         (3) a statement, signed by an officer of the
9     manufacturer or importer under penalty of perjury,
10     certifying that the manufacturer or importer has complied
11     with:
12             (A) the package health warning and ingredient
13         reporting requirements of the federal Cigarette
14         Labeling and Advertising Act, 15 U.S.C. 1333 and 1335a,
15         with respect to such cigarettes; and
16             (B) the provisions of Exhibit T of the Master
17         Settlement Agreement entered in the case of People of
18         the State of Illinois v. Philip Morris, et al. (Circuit
19         Court of Cook County, No. 96-L13146), including a
20         statement indicating whether the manufacturer is, or
21         is not, a participating tobacco manufacturer within
22         the meaning of Exhibit T.
23     (c) Administrative sanctions.
24         (1) Upon finding that a distributor has committed any
25     of the acts prohibited by subsection (a), knowing or having
26     reason to know that he or she has done so, or has failed to

 

 

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1     comply with any requirement of subsection (b), the
2     Department may revoke or suspend the license or licenses of
3     any distributor pursuant to the procedures set forth in
4     Section 6 and impose on the distributor a civil penalty in
5     an amount not to exceed the greater of 500% of the retail
6     value of the cigarettes involved or $5,000.
7         (2) Cigarettes that are acquired, held, owned,
8     possessed, transported in, imported into, or sold or
9     distributed in this State in violation of this Section
10     shall be deemed contraband under this Act and are subject
11     to seizure and forfeiture as provided in this Act, and all
12     such cigarettes seized and forfeited shall be destroyed.
13     Such cigarettes shall be deemed contraband whether the
14     violation of this Section is knowing or otherwise.
15     (d) Unfair trade practices. A violation of subsection (a)
16 or subsection (b) of this Section shall constitute an unlawful
17 practice as provided in the Consumer Fraud and Deceptive
18 Business Practices Act.
19     (e) Unfair cigarette sales. For purposes of the Trademark
20 Registration and Protection Act and the Counterfeit Trademark
21 Act, cigarettes imported or reimported into the United States
22 for sale or distribution under any trade name, trade dress, or
23 trademark that is the same as, or is confusingly similar to,
24 any trade name, trade dress, or trademark used for cigarettes
25 manufactured in the United States for sale or distribution in
26 the United States shall be presumed to have been purchased

 

 

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1 outside of the ordinary channels of trade.
2     (f) General provisions.
3         (1) This Section shall be enforced by the Department;
4     provided that, at the request of the Director of Revenue or
5     the Director's duly authorized agent, the State police and
6     all local police authorities shall enforce the provisions
7     of this Section. The Attorney General has concurrent power
8     with the State's Attorney of any county to enforce this
9     Section.
10         (2) For the purpose of enforcing this Section, the
11     Director of Revenue and any agency to which the Director
12     has delegated enforcement responsibility pursuant to
13     subdivision (f)(1) may request information from any State
14     or local agency and may share information with and request
15     information from any federal agency and any agency of any
16     other state or any local agency of any other state.
17         (3) In addition to any other remedy provided by law,
18     including enforcement as provided in subdivision (a)(1),
19     any person may bring an action for appropriate injunctive
20     or other equitable relief for a violation of this Section;
21     actual damages, if any, sustained by reason of the
22     violation; and, as determined by the court, interest on the
23     damages from the date of the complaint, taxable costs, and
24     reasonable attorney's fees. If the trier of fact finds that
25     the violation is flagrant, it may increase recovery to an
26     amount not in excess of 3 times the actual damages

 

 

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1     sustained by reason of the violation.
2     (g) Definitions. As used in this Section:
3     "Importer" means that term as defined in 26 U.S.C. 5702(1).
4     "Package" means that term as defined in 15 U.S.C. 1332(4).
5     (h) Applicability.
6         (1) This Section does not apply to:
7             (A) cigarettes allowed to be imported or brought
8         into the United States for personal use; and
9             (B) cigarettes sold or intended to be sold as
10         duty-free merchandise by a duty-free sales enterprise
11         in accordance with the provisions of 19 U.S.C. 1555(b)
12         and any implementing regulations; except that this
13         Section shall apply to any such cigarettes that are
14         brought back into the customs territory for resale
15         within the customs territory.
16         (2) The penalties provided in this Section are in
17     addition to any other penalties imposed under other
18     provision of law.
19 (Source: P.A. 91-810, eff. 6-13-00.)
 
20     (35 ILCS 130/3-15 new)
21     Sec. 3-15. Criminal penalties.
22     (1) Fraudulent offenses. Whoever intentionally fails to
23 comply with any of the requirements of this Act or regulations
24 prescribed hereunder shall, in addition to any other penalty
25 provided in this Act, for each such offense, be guilty of a

 

 

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1 Class 3 felony.
2     (2) Knowing offenses. Whoever, knowingly violates any of
3 the requirements of this Act or regulations prescribed
4 hereunder shall, in addition to any other penalty provided in
5 this Act, for each such offense, be guilty of a Class 4 felony.
6     (3) Penalties for contraband. Notwithstanding any other
7 provision of law, the possession for sale of contraband
8 cigarettes by a manufacturer, distributor, or retailer shall be
9 punishable as follows:
10         (A) A person who commits a first knowing violation
11     shall be guilty of a Class 4 felony.
12         (B) A person who commits a subsequent knowing violation
13     shall be guilty of a Class 3 felony and shall have his or
14     her license, permit, or certificate of registration
15     revoked by the Department. In no case shall the fine
16     imposed under this paragraph exceed ten times the retail
17     value of the cigarettes.
18     (4) For purposes of this Section, the term contraband
19 cigarettes includes cigarettes that have false manufacturing
20 labels or packs of cigarettes bearing counterfeit tax stamps.
21 Any contraband cigarette seized by this State shall be
22 destroyed. The Department may, prior to any destruction of
23 cigarettes, permit the true holder of the trademark rights in
24 the cigarette brand to inspect such contraband cigarettes, in
25 order to assist the Department in any investigation regarding
26 such cigarettes.

 

 

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1     (5) The penalties provided in paragraph (3) shall not apply
2 where a licensed distributor is in possession of contraband
3 cigarettes as a result of such cigarettes being returned to the
4 distributor by a retailer if such distributor promptly notified
5 appropriate law enforcement authorities.
6     (6) Criminal forfeiture.
7         (A) Notwithstanding any other provision of law, the
8     knowing possession for sale of contraband cigarettes by a
9     manufacturer, distributor, or retailer shall, after notice
10     and hearing, result in the forfeiture to this State of the
11     product and related machinery and equipment used in the
12     production of contraband cigarettes, or to falsely mark
13     cigarettes to reflect the payment of excise taxes.
14         (B) The knowing sale or possession for sale of
15     contraband cigarettes shall, after notice and hearing,
16     result in the seizure of all related machinery and
17     equipment.
18         (C) All cigarettes forfeited to this State under this
19     Section shall be destroyed. The Department may, prior to
20     any destruction of cigarettes, permit the true holder of
21     the trademark rights in the cigarette brand to inspect such
22     contraband cigarettes, in order to assist the Department in
23     any investigation regarding such cigarettes.
 
24     (35 ILCS 130/4)  (from Ch. 120, par. 453.4)
25     Sec. 4. Distributor's license. No person may engage in

 

 

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1 business as a distributor of cigarettes in this State within
2 the meaning of the first 2 definitions of distributor in
3 Section 1 of this Act without first having obtained a license
4 therefor from the Department. Application for license shall be
5 made to the Department in form as furnished and prescribed by
6 the Department. Each applicant for a license under this Section
7 shall furnish to the Department on the form signed and verified
8 by the applicant under penalty of perjury the following
9 information:
10         (a) The name and address of the applicant;
11         (b) The address of the location at which the applicant
12     proposes to engage in business as a distributor of
13     cigarettes in this State;
14         (c) Such other additional information as the
15     Department may lawfully require by its rules and
16     regulations.
17     The annual license fee payable to the Department for each
18 distributor's license shall be $250. The purpose of such annual
19 license fee is to defray the cost, to the Department, of
20 serializing cigarette tax stamps. Each applicant for license
21 shall pay such fee to the Department at the time of submitting
22 his application for license to the Department.
23     Every applicant who is required to procure a distributor's
24 license shall file with his application a joint and several
25 bond. Such bond shall be executed to the Department of Revenue,
26 with good and sufficient surety or sureties residing or

 

 

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1 licensed to do business within the State of Illinois, in the
2 amount of $2,500, conditioned upon the true and faithful
3 compliance by the licensee with all of the provisions of this
4 Act. Such bond, or a reissue thereof, or a substitute therefor,
5 shall be kept in effect during the entire period covered by the
6 license. A separate application for license shall be made, a
7 separate annual license fee paid, and a separate bond filed,
8 for each place of business at which a person who is required to
9 procure a distributor's license under this Section proposes to
10 engage in business as a distributor in Illinois under this Act.
11     The following are ineligible to receive a distributor's
12 license under this Act:
13             (1) a person who is not of good character and
14         reputation in the community in which he resides;
15             (2) a person who has been convicted of a felony
16         under any Federal or State law, if the Department,
17         after investigation and a hearing, if requested by the
18         applicant, determines that such person has not been
19         sufficiently rehabilitated to warrant the public
20         trust;
21             (3) a corporation, if any officer, manager or
22         director thereof, or any stockholder or stockholders
23         owning in the aggregate more than 5% of the stock of
24         such corporation, would not be eligible to receive a
25         license under this Act for any reason.
26             (4) a person, or any person who owns more than 15

 

 

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1         percent of the ownership interests in a person or a
2         related party who:
3                 (a) owes, at the time of application, $500 or
4             more in delinquent cigarette taxes that have been
5             determined by law to be due and unpaid, unless the
6             license applicant has entered into an agreement
7             approved by the Department to pay the amount due;
8                 (b) had a license under this Act revoked within
9             the past two years by the Department for willful
10             misconduct relating to stolen or contraband
11             cigarettes or has been convicted of a State or
12             federal crime, punishable by imprisonment of one
13             year or more, relating to stolen or contraband
14             cigarettes;
15                 (c) is a distributor who manufactures
16             cigarettes who is neither (i) a participating
17             manufacturer as defined in subsection II(jj) of
18             the "Master Settlement Agreement" as defined in
19             Sections 10 of the Tobacco Products Manufacturers'
20             Escrow Act and the Tobacco Products Manufacturers'
21             Escrow Enforcement Act of 2003 (30 ILCS 168/10 and
22             30 ILCS 167/10); nor (ii) in full compliance with
23             Tobacco Products Manufacturers' Escrow Act and the
24             Tobacco Products Manufacturers' Escrow Enforcement
25             Act of 2003 (30 ILCS 168/ and 30 ILCS 167/);
26                 (d) has been found to have willfully imported

 

 

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1             or caused to be imported into the United States for
2             sale or distribution any cigarette in violation of
3             19 U.S.C. 1681a;
4                 (e) has been found to have willfully imported
5             or caused to be imported into the United States for
6             sale or distribution or manufactured for sale or
7             distribution in the United States any cigarette
8             that does not fully comply with the Federal
9             Cigarette Labeling and Advertising Act (15 U.S.C.
10             1331, et seq.); or
11                 (f) has willfully made a material false
12             statement in the application or has willfully
13             failed to produce records required to be
14             maintained by this Act.
15     The Department, upon receipt of an application, license fee
16 and bond in proper form, from a person who is eligible to
17 receive a distributor's license under this Act, shall issue to
18 such applicant a license in form as prescribed by the
19 Department, which license shall permit the applicant to which
20 it is issued to engage in business as a distributor at the
21 place shown in his application. All licenses issued by the
22 Department under this Act shall be valid for not to exceed one
23 year after issuance unless sooner revoked, canceled or
24 suspended as provided in this Act. No license issued under this
25 Act is transferable or assignable. Such license shall be
26 conspicuously displayed in the place of business conducted by

 

 

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1 the licensee in Illinois under such license. No distributor
2 licensee acquires any vested interest or compensable property
3 right in a license issued under this Act.
4     A licensed distributor shall notify the Department of any
5 change in the information contained on the application form,
6 including any change in ownership and shall do so within 30
7 days after any such change.
8     Any person aggrieved by any decision of the Department
9 under this Section may, within 20 days after notice of the
10 decision, protest and request a hearing. Upon receiving a
11 request for a hearing, the Department shall give notice to the
12 person requesting the hearing of the time and place fixed for
13 the hearing and shall hold a hearing in conformity with the
14 provisions of this Act and then issue its final administrative
15 decision in the matter to that person. In the absence of a
16 protest and request for a hearing within 20 days, the
17 Department's decision shall become final without any further
18 determination being made or notice given.
19 (Source: P.A. 91-901, eff. 1-1-01; 92-322, eff. 1-1-02.)
 
20     (35 ILCS 130/4d new)
21     Sec. 4d. Transactions only with licensed distributors,
22 out-of-state manufacturers holding a permit, and retailers
23 holding a certificate of registration. A distributor or
24 manufacturer may sell or distribute cigarettes to a person
25 located or doing business within this State only if such person

 

 

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1 is a licensed distributor or a retailer holding a certificate
2 of registration. A retailer may only sell cigarettes obtained
3 from a licensed distributor or an out-of-state manufacturer
4 holding a permit.
 
5     (35 ILCS 130/20)  (from Ch. 120, par. 453.20)
6     Sec. 20. Whenever any peace officer of the State or any
7 duly authorized officer or employee of the Department shall
8 have reason to believe that any violation of this Act has
9 occurred and that the person so violating the Act has in his,
10 her or its possession any original package of cigarettes, not
11 tax stamped or tax imprinted underneath the sealed transparent
12 wrapper of such original package as required by this Act, or
13 any vending device containing such original packages to which
14 stamps have not been affixed, or on which an authorized
15 substitute for stamps has not been imprinted underneath the
16 sealed transparent wrapper of such original packages, as
17 required by this Act, he may file or cause to be filed his
18 complaint in writing, verified by affidavit, with any court
19 within whose jurisdiction the premises to be searched are
20 situated, stating the facts upon which such belief is founded,
21 the premises to be searched, and the property to be seized, and
22 procure a search warrant and execute the same. Upon the
23 execution of such search warrant, the peace officer, or officer
24 or employee of the Department, executing such search warrant
25 shall make due return thereof to the court issuing the same,

 

 

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1 together with an inventory of the property taken thereunder.
2 The court shall thereupon issue process against the owner of
3 such property if he is known; otherwise, such process shall be
4 issued against the person in whose possession the property so
5 taken is found, if such person is known. In case of inability
6 to serve such process upon the owner or the person in
7 possession of the property at the time of its seizure, as
8 hereinbefore provided, notice of the proceedings before the
9 court shall be given as required by the statutes of the State
10 governing cases of Attachment. Upon the return of the process
11 duly served or upon the posting or publishing of notice made,
12 as hereinabove provided, the court or jury, if a jury shall be
13 demanded, shall proceed to determine whether or not such
14 property so seized was held or possessed in violation of this
15 Act, or whether, if a vending device has been so seized, it
16 contained at the time of its seizure original packages not tax
17 stamped or tax imprinted underneath the sealed transparent
18 wrapper of such original packages as required by this Act. In
19 case of a finding that the original packages seized were not
20 tax stamped or tax imprinted underneath the sealed transparent
21 wrapper of such original packages in accordance with the
22 provisions of this Act, or that any vending device so seized
23 contained at the time of its seizure original packages not tax
24 stamped or tax imprinted underneath the sealed transparent
25 wrapper of such original packages in accordance with the
26 provisions of this Act, judgment shall be entered confiscating

 

 

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1 and forfeiting the property to the State and ordering its
2 delivery to the Department, and in addition thereto, the court
3 shall have power to tax and assess the costs of the
4 proceedings.
5     When any original packages or any cigarette vending device
6 shall have been declared forfeited to the State by any court,
7 as hereinbefore provided, and when such confiscated and
8 forfeited property shall have been delivered to the Department,
9 as provided in this Act, the said Department shall destroy sell
10 such property. The Department may, prior to any destruction of
11 cigarettes, permit the true holder of the trademark rights in
12 the cigarette brand to inspect such contraband cigarettes, in
13 order to assist the Department in any investigation regarding
14 such cigarettes. for the best price obtainable and shall
15 forthwith pay over the proceeds of such sale to the State
16 Treasurer; provided, however, that if the value of such
17 property to be sold at any one time shall be $500 or more, such
18 property shall be sold only to the highest and best bidder on
19 such terms and conditions and on open competitive bidding after
20 public advertisement, in such manner and for such terms as the
21 Department, by rule, may prescribe.
22     Upon making such a sale of original packages of cigarettes
23 which were not tax stamped or tax imprinted underneath the
24 sealed transparent wrapper of such original packages as
25 required by this Act, the Department shall affix a distinctive
26 stamp to each of the original packages so sold indicating that

 

 

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1 the same are sold pursuant to the provisions of this Section.
2 (Source: Laws 1965, p. 3707.)
 
3     (35 ILCS 130/21)  (from Ch. 120, par. 453.21)
4     Sec. 21. Destruction or use of forfeited property.
5     (a) When any original packages of cigarettes or any
6 cigarette vending device shall have been declared forfeited to
7 the State by the Department, as provided in Section 18a of this
8 Act, and when all proceedings for the judicial review of the
9 Department's decision have terminated, the Department shall,
10 to the extent that its decision is sustained on review,
11 destroy, or maintain and use such property in an undercover
12 capacity, or sell such property for the best price obtainable
13 and shall forthwith pay over the proceeds of such sale to the
14 State Treasurer. If the value of such property to be sold at
15 any one time is $500 or more, however, such property shall be
16 sold only to the highest and best bidder on such terms and
17 conditions and on open competitive bidding after public
18 advertisement, in such manner and for such terms as the
19 Department, by rule, may prescribe.
20     (b) The Department may, prior to any destruction of
21 cigarettes, permit the true holder of the trademark rights in
22 the cigarette brand to inspect such contraband cigarettes in
23 order to assist the Department in any investigation regarding
24 such cigarettes. If no complaint for review, as provided in
25 Section 8 of this Act, has been filed within the time required

 

 

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1 by the Administrative Review Law, and if no stay order has been
2 entered thereunder, the Department shall proceed to sell the
3 property for the best price obtainable and shall forthwith pay
4 over the proceeds of such sale to the State Treasurer. If the
5 value of such property to be sold at any one time is $500 or
6 more, however, such property shall be sold only to the highest
7 and best bidder on such terms and conditions and on open
8 competitive bidding after public advertisement, in such manner
9 and for such terms as the Department, by rule, may prescribe.
10     (c) Upon making a sale of unstamped original packages of
11 cigarettes as provided in this Section, the Department shall
12 affix a distinctive stamp to each of the original packages so
13 sold indicating that the same are sold under this Section.
14     (d) Notwithstanding the foregoing, any cigarettes seized
15 under this Act or under the Cigarette Use Tax Act may, at the
16 discretion of the Director of Revenue, be distributed to any
17 eleemosynary institution within the State of Illinois.
18 (Source: P.A. 94-776, eff. 5-19-06.)
 
19     (35 ILCS 130/29.5 new)
20     Sec. 29.5. Rulemaking. Rulemaking authority to implement
21 this amendatory Act of the 95th General Assembly, if any, is
22 conditioned on the rules being adopted in accordance with all
23 provisions of the Illinois Administrative Procedure Act and all
24 rules and procedures of the Joint Committee on Administrative
25 Rules; any purported rule not so adopted, for whatever reason,

 

 

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1 is unauthorized.
 
2     (35 ILCS 130/9c rep.)
3     (35 ILCS 130/28 rep.)
4     Section 10. The Cigarette Tax Act is amended by repealing
5 Sections 9c and 28.
 
6     Section 15. The Cigarette Use Tax Act is amended by
7 changing Sections 1, 3-10, 4, 26, and 27 and by adding Sections
8 3-15 and 35.5 as follows:
 
9     (35 ILCS 135/1)  (from Ch. 120, par. 453.31)
10     Sec. 1. For the purpose of this Act, unless otherwise
11 required by the context:
12     "Use" means the exercise by any person of any right or
13 power over cigarettes incident to the ownership or possession
14 thereof, other than the making of a sale thereof in the course
15 of engaging in a business of selling cigarettes and shall
16 include the keeping or retention of cigarettes for use.
17     "Brand Style" means a variety of cigarettes distinguished
18 by the tobacco used, tar and nicotine content, flavoring used,
19 size of the cigarette, filtration on the cigarette or
20 packaging.
21     "Cigarette" means any roll for smoking made wholly or in
22 part of tobacco irrespective of size or shape and whether or
23 not such tobacco is flavored, adulterated or mixed with any

 

 

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1 other ingredient, and the wrapper or cover of which is made of
2 paper or any other substance or material except tobacco.
3     "Contraband cigarettes" means:
4         (a) cigarettes that do not bear a required tax stamp
5     under this Act;
6         (b) cigarettes for which any required federal taxes
7     have not been paid;
8         (c) cigarettes that bear a counterfeit tax stamp;
9         (d) cigarettes that are manufactured, fabricated,
10     assembled, processed, packaged, or labeled by any person
11     other than (i) the owner of the trademark rights in the
12     cigarette brand or (ii) a person that is directly or
13     indirectly authorized by such owner;
14         (e) cigarettes imported into the United States, or
15     otherwise distributed, in violation of the federal
16     Imported Cigarette Compliance Act of 2000 (Title IV of
17     Public Law 106-476); or
18         (f) cigarettes that have false manufacturing labels.
19     "Person" means any natural individual, firm, partnership,
20 association, joint stock company, joint adventure, public or
21 private corporation, however formed, limited liability
22 company, or a receiver, executor, administrator, trustee,
23 guardian or other representative appointed by order of any
24 court.
25     "Department" means the Department of Revenue.
26     "Sale" means any transfer, exchange or barter in any manner

 

 

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1 or by any means whatsoever for a consideration, and includes
2 and means all sales made by any person.
3     "Original Package" means the individual packet, box or
4 other container whatsoever used to contain and to convey
5 cigarettes to the consumer.
6     "Distributor" means any and each of the following:
7         a. Any person engaged in the business of selling
8     cigarettes in this State who brings or causes to be brought
9     into this State from without this State any original
10     packages of cigarettes, on which original packages there is
11     no authorized evidence underneath a sealed transparent
12     wrapper showing that the tax liability imposed by this Act
13     has been paid or assumed by the out-of-State seller of such
14     cigarettes, for sale in the course of such business.
15         b. Any person who makes, manufactures or fabricates
16     cigarettes in this State for sale, except a person who
17     makes, manufactures or fabricates cigarettes for sale to
18     residents incarcerated in penal institutions or resident
19     patients or a State-operated mental health facility.
20         c. Any person who makes, manufactures or fabricates
21     cigarettes outside this State, which cigarettes are placed
22     in original packages contained in sealed transparent
23     wrappers, for delivery or shipment into this State, and who
24     elects to qualify and is accepted by the Department as a
25     distributor under Section 7 of this Act.
26     "Distributor" does not include any person who transfers

 

 

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1 cigarettes to a not-for-profit research institution that
2 conducts tests concerning the health effects of tobacco
3 products and who does not offer the cigarettes for resale.
4     "Distributor maintaining a place of business in this
5 State", or any like term, means any distributor having or
6 maintaining within this State, directly or by a subsidiary, an
7 office, distribution house, sales house, warehouse or other
8 place of business, or any agent operating within this State
9 under the authority of the distributor or its subsidiary,
10 irrespective of whether such place of business or agent is
11 located here permanently or temporarily, or whether such
12 distributor or subsidiary is licensed to transact business
13 within this State.
14     "Business" means any trade, occupation, activity or
15 enterprise engaged in or conducted in this State for the
16 purpose of selling cigarettes.
17     "Prior Continuous Compliance Taxpayer" means any person
18 who is licensed under this Act and who, having been a licensee
19 for a continuous period of 5 years, is determined by the
20 Department not to have been either delinquent or deficient in
21 the payment of tax liability during that period or otherwise in
22 violation of this Act. Also, any taxpayer who has, as verified
23 by the Department, continuously complied with the condition of
24 his bond or other security under provisions of this Act of a
25 period of 5 consecutive years shall be considered to be a
26 "prior continuous compliance taxpayer". In calculating the

 

 

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1 consecutive period of time described herein for qualification
2 as a "prior continuous compliance taxpayer", a consecutive
3 period of time of qualifying compliance immediately prior to
4 the effective date of this amendatory Act of 1987 shall be
5 credited to any licensee who became licensed on or before the
6 effective date of this amendatory Act of 1987.
7     "Stamp" or "stamps" mean the indicia required to be affixed
8 on a pack of cigarettes that evidence payment of the tax on
9 cigarettes under Section 2 of this Act (35 ILCS 130/2), or the
10 indicia used to indicate that the cigarettes are intended for a
11 sale or distribution within this State that is exempt from
12 State tax under any applicable provision of law.
13     "Within this State" means within the exterior limits of the
14 State of Illinois and includes all territory within these
15 limits owned by or ceded to the United States of America.
16     "Related party" means any person that is associated with
17 any other person because he or she:
18         (a) is an officer or director of a business;
19         (b) is legally recognized as a partner in business; or
20         (c) is directly or indirectly controlled by another.
21 (Source: P.A. 95-462, eff. 8-27-07.)
 
22     (35 ILCS 135/3-10)
23     Sec. 3-10. Cigarette enforcement.
24     (a) Prohibitions. It is unlawful for any person:
25         (1) to sell or distribute in this State; to acquire,

 

 

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1     hold, own, possess, or transport, for sale or distribution
2     in this State; or to import, or cause to be imported into
3     this State for sale or distribution in this State:
4             (A) any cigarettes the package of which:
5                 (i) bears any statement, label, stamp,
6             sticker, or notice indicating that the
7             manufacturer did not intend the cigarettes to be
8             sold, distributed, or used in the United States,
9             including but not limited to labels stating "For
10             Export Only", "U.S. Tax Exempt", "For Use Outside
11             U.S.", or similar wording; or
12                 (ii) does not comply with:
13                     (aa) all requirements imposed by or
14                 pursuant to federal law regarding warnings and
15                 other information on packages of cigarettes
16                 manufactured, packaged, or imported for sale,
17                 distribution, or use in the United States,
18                 including but not limited to the precise
19                 warning labels specified in the federal
20                 Cigarette Labeling and Advertising Act, 15
21                 U.S.C. 1333; and
22                     (bb) all federal trademark and copyright
23                 laws;
24             (B) any cigarettes imported into the United States
25         in violation of 26 U.S.C. 5754 or any other federal
26         law, or implementing federal regulations;

 

 

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1             (C) any cigarettes that such person otherwise
2         knows or has reason to know the manufacturer did not
3         intend to be sold, distributed, or used in the United
4         States; or
5             (D) any cigarettes for which there has not been
6         submitted to the Secretary of the U.S. Department of
7         Health and Human Services the list or lists of the
8         ingredients added to tobacco in the manufacture of the
9         cigarettes required by the federal Cigarette Labeling
10         and Advertising Act, 15 U.S.C. 1335a;
11         (2) to alter the package of any cigarettes, prior to
12     sale or distribution to the ultimate consumer, so as to
13     remove, conceal, or obscure:
14             (A) any statement, label, stamp, sticker, or
15         notice described in subdivision (a)(1)(A)(i) of this
16         Section;
17             (B) any health warning that is not specified in, or
18         does not conform with the requirements of, the federal
19         Cigarette Labeling and Advertising Act, 15 U.S.C.
20         1333; or
21         (3) to affix any stamp required pursuant to this Act to
22     the package of any cigarettes described in subdivision
23     (a)(1) of this Section or altered in violation of
24     subdivision (a)(2); or .
25         (4) to knowingly possess, or possess for sale,
26     contraband cigarettes.

 

 

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1     (b) Documentation. On the first business day of each month,
2 each person licensed to affix the State tax stamp to cigarettes
3 shall file with the Department, for all cigarettes imported
4 into the United States to which the person has affixed the tax
5 stamp in the preceding month:
6         (1) a copy of:
7             (A) the permit issued pursuant to the Internal
8         Revenue Code, 26 U.S.C. 5713, to the person importing
9         the cigarettes into the United States allowing the
10         person to import the cigarettes; and
11             (B) the customs form containing, with respect to
12         the cigarettes, the internal revenue tax information
13         required by the U.S. Bureau of Alcohol, Tobacco and
14         Firearms;
15         (2) a statement, signed by the person under penalty of
16     perjury, which shall be treated as confidential by the
17     Department and exempt from disclosure under the Freedom of
18     Information Act, identifying the brand and brand styles of
19     all such cigarettes, the quantity of each brand style of
20     such cigarettes, the supplier of such cigarettes, and the
21     person or persons, if any, to whom such cigarettes have
22     been conveyed for resale; and a separate statement, signed
23     by the individual under penalty of perjury, which shall not
24     be treated as confidential or exempt from disclosure,
25     separately identifying the brands and brand styles of such
26     cigarettes; and

 

 

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1         (3) a statement, signed by an officer of the
2     manufacturer or importer under penalty of perjury,
3     certifying that the manufacturer or importer has complied
4     with:
5             (A) the package health warning and ingredient
6         reporting requirements of the federal Cigarette
7         Labeling and Advertising Act, 15 U.S.C. 1333 and 1335a,
8         with respect to such cigarettes; and
9             (B) the provisions of Exhibit T of the Master
10         Settlement Agreement entered in the case of People of
11         the State of Illinois v. Philip Morris, et al. (Circuit
12         Court of Cook County, No. 96-L13146), including a
13         statement indicating whether the manufacturer is, or
14         is not, a participating tobacco manufacturer within
15         the meaning of Exhibit T.
16     (c) Administrative sanctions.
17         (1) Upon finding that a distributor has committed any
18     of the acts prohibited by subsection (a), knowing or having
19     reason to know that he or she has done so, or has failed to
20     comply with any requirement of subsection (b), the
21     Department may revoke or suspend the license or licenses of
22     any distributor pursuant to the procedures set forth in
23     Section 6 and impose on the distributor a civil penalty in
24     an amount not to exceed the greater of 500% of the retail
25     value of the cigarettes involved or $5,000.
26         (2) Cigarettes that are acquired, held, owned,

 

 

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1     possessed, transported in, imported into, or sold or
2     distributed in this State in violation of this Section
3     shall be deemed contraband under this Act and are subject
4     to seizure and forfeiture as provided in this Act, and all
5     such cigarettes seized and forfeited shall be destroyed.
6     Such cigarettes shall be deemed contraband whether the
7     violation of this Section is knowing or otherwise.
8     (d) Unfair trade practices. A violation of subsection (a)
9 or subsection (b) of this Section shall constitute an unlawful
10 practice as provided in the Consumer Fraud and Deceptive
11 Business Practices Act.
12     (e) Unfair cigarette sales. For purposes of the Trademark
13 Registration and Protection Act and the Counterfeit Trademark
14 Act, cigarettes imported or reimported into the United States
15 for sale or distribution under any trade name, trade dress, or
16 trademark that is the same as, or is confusingly similar to,
17 any trade name, trade dress, or trademark used for cigarettes
18 manufactured in the United States for sale or distribution in
19 the United States shall be presumed to have been purchased
20 outside of the ordinary channels of trade.
21     (f) General provisions.
22         (1) This Section shall be enforced by the Department;
23     provided that, at the request of the Director of Revenue or
24     the Director's duly authorized agent, the State police and
25     all local police authorities shall enforce the provisions
26     of this Section. The Attorney General has concurrent power

 

 

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1     with the State's Attorney of any county to enforce this
2     Section.
3         (2) For the purpose of enforcing this Section, the
4     Director of Revenue and any agency to which the Director
5     has delegated enforcement responsibility pursuant to
6     subdivision (f)(1) may request information from any State
7     or local agency and may share information with and request
8     information from any federal agency and any agency of any
9     other state or any local agency of any other state.
10         (3) In addition to any other remedy provided by law,
11     including enforcement as provided in subdivision (a)(1),
12     any person may bring an action for appropriate injunctive
13     or other equitable relief for a violation of this Section;
14     actual damages, if any, sustained by reason of the
15     violation; and, as determined by the court, interest on the
16     damages from the date of the complaint, taxable costs, and
17     reasonable attorney's fees. If the trier of fact finds that
18     the violation is flagrant, it may increase recovery to an
19     amount not in excess of 3 times the actual damages
20     sustained by reason of the violation.
21     (g) Definitions. As used in this Section:
22     "Importer" means that term as defined in 26 U.S.C. 5702(1).
23     "Package" means that term as defined in 15 U.S.C. 1332(4).
24     (h) Applicability.
25         (1) This Section does not apply to:
26             (A) cigarettes allowed to be imported or brought

 

 

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1         into the United States for personal use; and
2             (B) cigarettes sold or intended to be sold as
3         duty-free merchandise by a duty-free sales enterprise
4         in accordance with the provisions of 19 U.S.C. 1555(b)
5         and any implementing regulations; except that this
6         Section shall apply to any such cigarettes that are
7         brought back into the customs territory for resale
8         within the customs territory.
9         (2) The penalties provided in this Section are in
10     addition to any other penalties imposed under other
11     provision of law.
12 (Source: P.A. 91-810, eff. 6-13-00.)
 
13     (35 ILCS 135/3-15 new)
14     Sec. 3-15. Criminal penalties.
15     (1) Fraudulent offenses. Whoever intentionally fails to
16 comply with any of the requirements of this Act or regulations
17 prescribed hereunder shall, in addition to any other penalty
18 provided in this Act, for each such offense, be guilty of a
19 Class 3 felony.
20     (2) Knowing offenses. Whoever, knowingly violates any of
21 the requirements of this Act or regulations prescribed
22 hereunder shall, in addition to any other penalty provided in
23 this Act, for each such offense, be guilty of a Class 4 felony.
24     (3) Penalties for contraband. Notwithstanding any other
25 provision of law, the possession for sale of contraband

 

 

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1 cigarettes by a manufacturer, distributor, or retailer shall be
2 punishable as follows:
3         (A) A person who commits a first knowing violation
4     shall be guilty of a Class 4 felony.
5         (B) A person who commits a subsequent knowing violation
6     shall be guilty of a Class 3 felony and shall have his or
7     her license, permit, or certificate of registration
8     revoked by the Department. In no case shall the fine
9     imposed under this paragraph exceed ten times the retail
10     value of the cigarettes.
11     (4) For purposes of this Section, the term contraband
12 cigarettes includes cigarettes that have false manufacturing
13 labels or packs of cigarettes bearing counterfeit tax stamps.
14 Any contraband cigarette seized by this State shall be
15 destroyed. The Department may, prior to any destruction of
16 cigarettes, permit the true holder of the trademark rights in
17 the cigarette brand to inspect such contraband cigarettes, in
18 order to assist the Department in any investigation regarding
19 such cigarettes.
20     (5) The penalties provided in paragraph (3) shall not apply
21 where a licensed distributor is in possession of contraband
22 cigarettes as a result of such cigarettes being returned to the
23 distributor by a retailer if such distributor promptly notified
24 appropriate law enforcement authorities.
25     (6) Criminal forfeiture.
26         (A) Notwithstanding any other provision of law, the

 

 

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1     knowing possession for sale of contraband cigarettes by a
2     manufacturer, distributor, or retailer shall, after notice
3     and hearing, result in the forfeiture to this State of the
4     product and related machinery and equipment used in the
5     production of contraband cigarettes, or to falsely mark
6     cigarettes to reflect the payment of excise taxes.
7         (B) The knowing sale or possession for sale of
8     contraband cigarettes shall, after notice and hearing,
9     result in the seizure of all related machinery and
10     equipment.
11         (C) All cigarettes forfeited to this State under this
12     Section shall be destroyed. The Department may, prior to
13     any destruction of cigarettes, permit the true holder of
14     the trademark rights in the cigarette brand to inspect such
15     contraband cigarettes, in order to assist the Department in
16     any investigation regarding such cigarettes.
 
17     (35 ILCS 135/4)  (from Ch. 120, par. 453.34)
18     Sec. 4. Distributor's license. A distributor maintaining a
19 place of business in this State, if required to procure a
20 license or allowed to obtain a permit as a distributor under
21 the Cigarette Tax Act, need not obtain an additional license or
22 permit under this Act, but shall be deemed to be sufficiently
23 licensed or registered by virtue of his being licensed or
24 registered under the Cigarette Tax Act.
25     Every distributor maintaining a place of business in this

 

 

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1 State, if not required to procure a license or allowed to
2 obtain a permit as a distributor under the Cigarette Tax Act,
3 shall make a verified application to the Department (upon a
4 form prescribed and furnished by the Department) for a license
5 to act as a distributor under this Act. In completing such
6 application, the applicant shall furnish such information as
7 the Department may reasonably require.
8     The annual license fee payable to the Department for each
9 distributor's license shall be $250. The purpose of such annual
10 license fee is to defray the cost, to the Department, of
11 serializing cigarette tax stamps. The applicant for license
12 shall pay such fee to the Department at the time of submitting
13 the application for license to the Department.
14     Such applicant shall file, with his application, a joint
15 and several bond. Such bond shall be executed to the Department
16 of Revenue, with good and sufficient surety or sureties
17 residing or licensed to do business within the State of
18 Illinois, in the amount of $2,500, conditioned upon the true
19 and faithful compliance by the licensee with all of the
20 provisions of this Act. Such bond, or a reissue thereof, or a
21 substitute therefor, shall be kept in effect during the entire
22 period covered by the license. A separate application for
23 license shall be made, a separate annual license fee paid, and
24 a separate bond filed, for each place of business at or from
25 which the applicant proposes to act as a distributor under this
26 Act and for which the applicant is not required to procure a

 

 

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1 license or allowed to obtain a permit as a distributor under
2 the Cigarette Tax Act.
3     The following are ineligible to receive a distributor's
4 license under this Act:
5         (1) a person who is not of good character and
6     reputation in the community in which he resides;
7         (2) a person who has been convicted of a felony under
8     any Federal or State law, if the Department, after
9     investigation and a hearing, if requested by the applicant,
10     determines that such person has not been sufficiently
11     rehabilitated to warrant the public trust;
12         (3) a corporation, if any officer, manager or director
13     thereof, or any stockholder or stockholders owning in the
14     aggregate more than 5% of the stock of such corporation,
15     would not be eligible to receive a license hereunder for
16     any reason.
17         (4) a person, or any person who owns more than 15
18     percent of the ownership interests in a person or a related
19     party who:
20             (a) owes, at the time of application, $500 or more
21         in delinquent cigarette taxes that have been
22         determined by law to be due and unpaid, unless the
23         license applicant has entered into an agreement
24         approved by the Department to pay the amount due;
25             (b) had a license under this Act revoked within the
26         past 2 years by the Department for willful misconduct

 

 

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1         relating to stolen or contraband cigarettes or has been
2         convicted of a State or federal crime, punishable by
3         imprisonment of one year or more, relating to stolen or
4         contraband cigarettes;
5             (c) is a distributor who manufactures cigarettes
6         who is neither (i) a participating manufacturer as
7         defined in subsection II(jj) of the "Master Settlement
8         Agreement" as defined in Sections 10 of the Tobacco
9         Products Manufacturers' Escrow Act and the Tobacco
10         Products Manufacturers' Escrow Enforcement Act of 2003
11         (30 ILCS 168/10 and 30 ILCS 167/10); nor (ii) in full
12         compliance with Tobacco Products Manufacturers' Escrow
13         Act and the Tobacco Products Manufacturers' Escrow
14         Enforcement Act of 2003 (30 ILCS 168/ and 30 ILCS
15         167/);
16             (d) has been found to have willfully imported or
17         caused to be imported into the United States for sale
18         or distribution any cigarette in violation of 19 U.S.C.
19         1681a;
20             (e) has been found to have willfully imported or
21         caused to be imported into the United States for sale
22         or distribution or manufactured for sale or
23         distribution in the United States any cigarette that
24         does not fully comply with the Federal Cigarette
25         Labeling and Advertising Act (15 U.S.C. 1331, et seq.);
26         or

 

 

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1             (f) has willfully made a material false statement
2         in the application or has willfully failed to produce
3         records required to be maintained by this Act.
4     Upon approval of such application and bond and payment of
5 the required annual license fee, the Department shall issue a
6 license to the applicant. Such license shall permit the
7 applicant to engage in business as a distributor at or from the
8 place shown in his application. All licenses issued by the
9 Department under this Act shall be valid for not to exceed one
10 year after issuance unless sooner revoked, canceled or
11 suspended as in this Act provided. No license issued under this
12 Act is transferable or assignable. Such license shall be
13 conspicuously displayed at the place of business for which it
14 is issued.
15     Any person aggrieved by any decision of the Department
16 under this Section may, within 20 days after notice of the
17 decision, protest and request a hearing. Upon receiving a
18 request for a hearing, the Department shall give notice to the
19 person requesting the hearing of the time and place fixed for
20 the hearing and shall hold a hearing in conformity with the
21 provisions of this Act and then issue its final administrative
22 decision in the matter to that person. In the absence of a
23 protest and request for a hearing within 20 days, the
24 Department's decision shall become final without any further
25 determination being made or notice given.
26 (Source: P.A. 91-901, eff. 1-1-01; 92-322, eff. 1-1-02.)
 

 

 

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1     (35 ILCS 135/26)  (from Ch. 120, par. 453.56)
2     Sec. 26. Whenever any peace officer of the State or any
3 duly authorized officer or employee of the Department shall
4 have reason to believe that any violation of this Act has
5 occurred and that the person so violating the Act has in his,
6 her or its possession any original package of cigarettes, not
7 tax stamped or tax imprinted underneath the sealed transparent
8 wrapper of such original packages, as required by this Act, or
9 any vending device containing such original packages to which
10 stamps have not been affixed, or on which an authorized
11 substitute for stamps has not been imprinted underneath the
12 sealed transparent wrapper of such original packages, as
13 required by this Act, he may file or cause to be filed his
14 complaint in writing, verified by affidavit, with any circuit
15 court within whose jurisdiction the premises to be searched are
16 situated, stating the facts upon which such belief is founded,
17 the premises to be searched, and the property to be seized, and
18 procure a search warrant and execute the same. Upon the
19 execution of such search warrant, the peace officer, or officer
20 or employee of the Department, executing such search warrant
21 shall make due return thereof to the court issuing the same,
22 together with an inventory of the property taken thereunder.
23 The court shall thereupon issue process against the owner of
24 such property if he is known; otherwise, such process shall be
25 issued against the person in whose possession the property so

 

 

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1 taken is found, if such person is known. In case of inability
2 to serve such process upon the owner or the person in
3 possession of the property at the time of its seizure, as
4 hereinbefore provided, notice of the proceedings before the
5 court shall be given as required by the statutes of the State
6 governing cases of Attachment. Upon the return of the process
7 duly served or upon the posting or publishing of notice made,
8 as hereinabove provided, the court or jury, if a jury shall be
9 demanded, shall proceed to determine whether or not such
10 property so seized was held or possessed in violation of this
11 Act, or whether, if a vending device has been so seized, it
12 contained at the time of its seizure original packages not tax
13 stamped or tax imprinted underneath the sealed transparent
14 wrapper of such original packages as required by this Act. In
15 case of a finding that the original packages seized were not
16 tax stamped or tax imprinted underneath the sealed transparent
17 wrapper of such original packages in accordance with the
18 provisions of this Act, or that any vending device so seized
19 contained at the time of its seizure original packages not tax
20 stamped or tax imprinted underneath the sealed transparent
21 wrapper of such original packages in accordance with the
22 provisions of this Act, judgment shall be entered confiscating
23 and forfeiting the property to the State and ordering its
24 delivery to the Department, and in addition thereto, the court
25 shall have power to tax and assess the costs of the
26 proceedings.

 

 

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1     When any original packages or any cigarette vending device
2 shall have been declared forfeited to the State by any court,
3 as hereinbefore provided, and when such confiscated and
4 forfeited property shall have been delivered to the Department,
5 as provided in this Act, the said Department shall destroy, or
6 maintain and use such property in an undercover capacity. The
7 Department may, prior to any destruction of cigarettes, permit
8 the true holder of the trademark rights in the cigarette brand
9 to inspect such contraband cigarettes, in order to assist the
10 Department in any investigation regarding such cigarettes. , or
11 sell such property for the best price obtainable and shall
12 forthwith pay over the proceeds of such sale to the State
13 Treasurer; provided, however, that if the value of such
14 property to be sold at any one time shall be $500 or more, such
15 property shall be sold only to the highest and best bidder on
16 such terms and conditions and on open competitive bidding after
17 public advertisement, in such manner and for such terms as the
18 Department, by rule, may prescribe.
19     Upon making such a sale of original packages of cigarettes
20 which were not tax stamped or tax imprinted underneath the
21 sealed transparent wrapper of such original packages as
22 required by this Act, the Department shall affix a distinctive
23 stamp to each of the original packages so sold indicating that
24 the same are sold pursuant to the provisions of this Section.
25 (Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

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1     (35 ILCS 135/27)  (from Ch. 120, par. 453.57)
2     Sec. 27. Destruction or use of forfeited property. When any
3 original packages of cigarettes or any cigarette vending device
4 shall have been declared forfeited to the State by the
5 Department, as provided in Section 25 of this Act, and when all
6 proceedings for the judicial review of the Department's
7 decision have terminated, the Department shall, to the extent
8 that its decision is sustained on review, destroy, or maintain
9 and use such property in an undercover capacity. The Department
10 may, prior to any destruction of cigarettes, permit the true
11 holder of the trademark rights in the cigarette brand to
12 inspect such contraband cigarettes, in order to assist the
13 Department in any investigation regarding such cigarettes. , or
14 sell such property for the best price obtainable and shall
15 forthwith pay over the proceeds of such sale to the State
16 Treasurer; provided, however, that if the value of such
17 property to be sold at any one time shall be Five Hundred
18 Dollars ($500) or more, such property shall be sold only to the
19 highest and best bidder on such terms and conditions and on
20 open competitive bidding after public advertisement, in such
21 manner and for such terms as the Department, by rule, may
22 prescribe.
23     If no complaint for review, as provided in Section 21 of
24 this Act, has been filed within the time required by the
25 "Administrative Review Law," and if no stay order has been
26 entered thereunder, the Department shall proceed to sell said

 

 

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1 property for the best price obtainable and shall forthwith pay
2 over the proceeds of such sale to the State Treasurer;
3 provided, however, that if the value of such property to be
4 sold at any one time shall be $500 or more, such property shall
5 be sold only to the highest and best bidder on such terms and
6 conditions and on open competitive bidding after public
7 advertisement, in such manner and for such terms as the
8 Department, by rule, may prescribe.
9     Upon making a sale of unstamped original packages of
10 cigarettes as provided in this Section, the Department shall
11 affix a distinctive stamp to each of the original packages so
12 sold indicating that the same are sold pursuant to the
13 provisions of this Section.
14 (Source: P.A. 94-776, eff. 5-19-06.)
 
15     (35 ILCS 135/35.5 new)
16     Sec. 35.5. Rulemaking. Rulemaking authority to implement
17 this amendatory Act of the 95th General Assembly, if any, is
18 conditioned on the rules being adopted in accordance with all
19 provisions of the Illinois Administrative Procedure Act and all
20 rules and procedures of the Joint Committee on Administrative
21 Rules; any purported rule not so adopted, for whatever reason,
22 is unauthorized.
 
23     Section 20. The Prevention of Cigarette Sales to Minors Act
24 is amended by changing Sections 5 and 10 and by adding Sections

 

 

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1 2, 6, 7, 8, 9, 20, 25, 30, and 35 as follows:
 
2     (720 ILCS 678/2 new)
3     Sec. 2. Definitions. For the purpose of this Act:
4     "Clear and conspicuous statement" means the statement is of
5 sufficient type size to be clearly readable by the recipient of
6 the communication.
7     "Consumer" means an individual who acquires or seeks to
8 acquire cigarettes for personal use.
9     "Delivery sale" means any sale of cigarettes to a consumer
10 if:
11         (a) the consumer submits the order for such sale by
12     means of a telephone or other method of voice transmission,
13     the mails, or the Internet or other online service, or the
14     seller is otherwise not in the physical presence of the
15     buyer when the request for purchase or order is made; or
16         (b) the cigarettes are delivered by use of a common
17     carrier, private delivery service, or the mails, or the
18     seller is not in the physical presence of the buyer when
19     the buyer obtains possession of the cigarettes.
20     "Delivery service" means any person (other than a person
21 that makes a delivery sale) who delivers to the consumer the
22 cigarettes sold in a delivery sale.
23     "Department" means the Department of Revenue.
24     "Government-issued identification" means a State driver's
25 license, State identification card, passport, a military

 

 

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1 identification or an official naturalization or immigration
2 document, such as an alien registration recipient card
3 (commonly known as a "green card") or an immigrant visa.
4     "Legal minimum age" means the minimum age at which an
5 individual may legally purchase cigarettes within this State,
6 as determined by either State or local government.
7     "Mails" or "mailing" mean the shipment of cigarettes
8 through the United States Postal Service.
9     "Out-of-state sale" means a sale of cigarettes to a
10 consumer located outside of this State where the consumer
11 submits the order for such sale by means of a telephonic or
12 other method of voice transmission, the mails or any other
13 delivery service, facsimile transmission, or the Internet or
14 other online service and where the cigarettes are delivered by
15 use of the mails or other delivery service.
16     "Person" means any individual, corporation, partnership,
17 limited liability company, association, or other organization
18 that engages in any for-profit or not-for-profit activities.
19     "Shipping package" means a container in which packs or
20 cartons of cigarettes are shipped in connection with a delivery
21 sale.
22     "Shipping documents" means bills of lading, air bills, or
23 any other documents used to evidence the undertaking by a
24 delivery service to deliver letters, packages, or other
25 containers.
26     "Within this State" means within the exterior limits of the

 

 

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1 State of Illinois and includes all territory within these
2 limits owned by or ceded to the United States of America.
 
3     (720 ILCS 678/5)
4     Sec. 5. Unlawful shipment or transportation of cigarettes.
5     (a) It is unlawful for any person engaged in the business
6 of selling cigarettes to ship or cause to be shipped any
7 cigarettes unless the person shipping the cigarettes:
8         (1) is licensed as a distributor under either the
9     Cigarette Tax Act, or the Cigarette Use Tax Act; or
10     delivers the cigarettes to a distributor licensed under
11     either the Cigarette Tax Act or the Cigarette Use Tax Act;
12     or
13         (2) ships them to an export warehouse proprietor
14     pursuant to Chapter 52 of the Internal Revenue Code, or an
15     operator of a customs bonded warehouse pursuant to Section
16     1311 or 1555 of Title 19 of the United States Code.
17     For purposes of this subsection (a), a person is a licensed
18 distributor if the person's name appears on a list of licensed
19 distributors published by the Illinois Department of Revenue.
20 The term cigarette has the same meaning as defined in Section 1
21 of the Cigarette Tax Act and Section 1 of the Cigarette Use Tax
22 Act. Nothing in this Act prohibits a person licensed as a
23 distributor under the Cigarette Tax Act or the Cigarette Use
24 Tax Act from shipping or causing to be shipped any cigarettes
25 to a registered retailer under the Retailers' Occupation Tax

 

 

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1 Act and the Cigarette Tax Act provided the cigarette tax or
2 cigarette use tax has been paid.
3     (b) A common or contract carrier may transport cigarettes
4 to any individual person in this State only if the carrier
5 reasonably believes such cigarettes have been received from a
6 person described in paragraph (a)(1). Common or contract
7 carriers may make deliveries of cigarettes to licensed
8 distributors described in paragraph (a)(1) of this Section.
9 Nothing in this subsection (b) shall be construed to prohibit a
10 person other than a common or contract carrier from
11 transporting not more than 1,000 cigarettes at any one time to
12 any person in this State.
13     (c) A common or contract carrier may not complete the
14 delivery of any cigarettes to persons other than those
15 described in paragraph (a)(1) of this Section without first
16 obtaining from the purchaser an official written
17 identification from any state or federal agency that displays
18 the person's date of birth or a birth certificate that includes
19 a reliable confirmation that the purchaser is at least 18 years
20 of age; that the cigarettes purchased are not intended for
21 consumption by an individual who is younger than 18 years of
22 age; and a written statement signed by the purchaser that
23 certifies the purchaser's address and that the purchaser is at
24 least 18 years of age. The statement shall also confirm: (1)
25 that the purchaser understands that signing another person's
26 name to the certification is illegal; (2) that the sale of

 

 

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1 cigarettes to individuals under 18 years of age is illegal; and
2 (3) that the purchase of cigarettes by individuals under 18
3 years of age is illegal under the laws of Illinois.
4     (d) When a person engaged in the business of selling
5 cigarettes ships or causes to be shipped any cigarettes to any
6 person in this State, other than in the cigarette
7 manufacturer's or tobacco products manufacturer's original
8 container or wrapping, the container or wrapping must be
9 plainly and visibly marked with the word "cigarettes".
10     (e) When a peace officer of this State or any duly
11 authorized officer or employee of the Illinois Department of
12 Public Health or Department of Revenue discovers any cigarettes
13 which have been or which are being shipped or transported in
14 violation of this Section, he or she shall seize and take
15 possession of the cigarettes, and the cigarettes shall be
16 subject to a forfeiture action pursuant to the procedures
17 provided under the Cigarette Tax Act or Cigarette Use Tax Act.
18 (Source: P.A. 93-960, eff. 8-20-04.)
 
19     (720 ILCS 678/6 new)
20     Sec. 6. Prevention of delivery sales to minors.
21     (a) No person shall make a delivery sale of cigarettes to
22 any individual who is under the legal minimum age.
23     (b) Each person accepting a purchase order for a delivery
24 sale shall comply with the provisions of this Act and all other
25 laws of this State generally applicable to sales of cigarettes

 

 

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1 that occur entirely within this State, including, but not
2 limited to, those laws imposing: (i) excise taxes; (ii) sales
3 taxes; (iii) license and revenue-stamping requirements; and
4 (iv) escrow payment obligations.
 
5     (720 ILCS 678/7 new)
6     Sec. 7. Age verification and shipping requirements to
7 prevent delivery sales to minors.
8     (a) No person, other than a delivery service, shall mail,
9 ship, or otherwise cause to be delivered a shipping package in
10 connection with a delivery sale unless the person:
11         (1) prior to the first delivery sale to the prospective
12     consumer, obtains from the prospective consumer a written
13     certification which includes a statement signed by the
14     prospective consumer that certifies:
15             (A) the prospective consumer's current address;
16         and
17             (B) that the prospective consumer is at least the
18         legal minimum age;
19         (2) informs, in writing, such prospective consumer
20     that:
21             (A) the signing of another person's name to the
22         certification described in this Section is illegal;
23             (B) sales of cigarettes to individuals under the
24         legal minimum age are illegal;
25             (C) the purchase of cigarettes by individuals

 

 

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1         under the legal minimum age is illegal; and
2             (D) the name and identity of the prospective
3         consumer may be reported to the state of the consumer's
4         current address under the Act of October 19, 1949 (15
5         U.S.C. § 375, et seq.), commonly known as the Jenkins
6         Act;
7         (3) makes a good faith effort to verify the date of
8     birth of the prospective consumer provided pursuant to this
9     Section by:
10             (A) comparing the date of birth against a
11         commercially available database or
12             (B) obtaining a photocopy or other image of a
13         valid, government-issued identification stating the
14         date of birth or age of the prospective consumer;
15         (4) provides to the prospective consumer a notice that
16     meets the requirements of subsection (b);
17         (5) receives payment for the delivery sale from the
18     prospective consumer by a credit or debit card that has
19     been issued in such consumer's name, or by a check or other
20     written instrument in such consumer's name; and
21         (6) ensures that the shipping package is delivered to
22     the same address as is shown on the government-issued
23     identification or contained in the commercially available
24     database.
25     (b) The notice required under this Section shall include:
26         (1) a statement that cigarette sales to consumers below

 

 

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1     the legal minimum age are illegal;
2         (2) a statement that sales of cigarettes are restricted
3     to those consumers who provide verifiable proof of age in
4     accordance with subsection (a);
5         (3) a statement that cigarette sales are subject to tax
6     under Section 2 of the Cigarette Tax Act (35 ILCS 130/2)
7     and an explanation of how such tax has been, or is to be,
8     paid with respect to such delivery sale.
9     (c) A statement meets the requirement of this Section if:
10         (1) the statement is clear and conspicuous;
11         (2) the statement is contained in a printed box set
12     apart from the other contents of the communication;
13         (3) the statement is printed in bold, capital letters;
14         (4) the statement is printed with a degree of color
15     contrast between the background and the printed statement
16     that is no less than the color contrast between the
17     background and the largest text used in the communication;
18     and
19         (5) for any printed material delivered by electronic
20     means, the statement appears at both the top and the bottom
21     of the electronic mail message or both the top and the
22     bottom of the Internet website homepage.
23     (d) Each person, other than a delivery service, who mails,
24 ships, or otherwise causes to be delivered a shipping package
25 in connection with a delivery sale shall:
26         (1) include as part of the shipping documents a clear

 

 

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1     and conspicuous statement stating: "Cigarettes: Illinois
2     Law Prohibits Shipping to Individuals Under 18 and Requires
3     the Payment of All Applicable Taxes";
4         (2) use a method of mailing, shipping, or delivery that
5     requires a signature before the shipping package is
6     released to the consumer; and
7         (3) ensure that the shipping package is not delivered
8     to any post office box.
 
9     (720 ILCS 678/8 new)
10     Sec. 8. Registration and reporting requirements to prevent
11 delivery sales to minors.
12     (a) Each person who makes a delivery sale of cigarettes to
13 a consumer located within this State shall file with the
14 Department for each individual sale:
15         (1) a statement setting forth such person's name, trade
16     name, and the address of such person's principal place of
17     business and any other place of business; and
18         (2) not later than the tenth day of each calendar
19     month, a memorandum or copy of the invoice for each and
20     every such delivery sale made during the previous calendar
21     month, which includes the following information:
22             (A) the name and address of the consumer to whom
23         such delivery sale was made;
24             (B) the brand style or brand styles of the
25         cigarettes that were sold in such delivery sale;

 

 

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1             (C) the quantity of cigarettes that were sold in
2         such delivery sale; and
3             (D) an indication of whether or not the cigarettes
4         sold in the delivery sale bore a tax stamp evidencing
5         payment of the tax under Section 2 of the Cigarette Tax
6         Act (35 ILCS 130/2).
7     (b) Each person engaged in business within this State who
8 makes an out-of-state sale shall, for each individual sale,
9 submit to the appropriate tax official of the state in which
10 the consumer is located the information required in subsection
11 (a).
12     (c) Any person that satisfies the requirements of 15 U.S.C.
13 Section 376 shall be deemed to satisfy the requirements of
14 subsections (a) and (b).
15     (d) The Department is authorized to disclose to the
16 Attorney General any information received under this title and
17 requested by the Attorney General. The Department and the
18 Attorney General shall share with each other the information
19 received under this title and may share the information with
20 other federal, State, or local agencies for purposes of
21 enforcement of this title or the laws of the federal government
22 or of other states.
23     (e) This Section shall not be construed to impose liability
24 upon any delivery service, or officers or employees thereof,
25 when acting within the scope of business of the delivery
26 service.
 

 

 

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1     (720 ILCS 678/9 new)
2     Sec. 9. Statements for delivery sales.
3     (a) Each person who makes a delivery sale shall collect and
4 remit to the Department all excise taxes imposed by this State
5 with respect to such delivery sale and maintain evidence of
6 such payment unless the person is located outside the State and
7 includes a statement on the outside of the shipping package
8 stating: "Illinois law requires the payment of state taxes on
9 this shipment of cigarettes. You are legally responsible for
10 all applicable unpaid state taxes on these cigarettes."
11     (b) A statement meets the requirements of subsection (a) if
12 the statement is:
13         (1) clear and conspicuous;
14         (2) contained in a printed box set apart from the
15     shipping label and other markings contained on the shipping
16     package;
17         (3) printed in bold, capital letters;
18         (4) printed with a degree of color contrast between the
19     background and the printed statement that is no less than
20     the color contrast between the background and the largest
21     text used on the shipping label; and
22         (5) located on the same side of the shipping package as
23     the shipping label.
 
24     (720 ILCS 678/10)

 

 

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1     Sec. 10. Violation.
2     (a) A person who violates subsection (a), (b), or (c) of
3 Section 5 or Section 6, 7, 8, or 9 is guilty of a Class A
4 misdemeanor. A second or subsequent violation of subsection
5 (a), (b), or (c) of Section 5 or Section 6, 7, 8, or 9 is a
6 Class 4 felony.
7     (b) The Department of Revenue shall impose a civil penalty
8 not to exceed $5,000 on any person who violates subsection (a),
9 (b), or (c) of Section 5 or Section 6, 7, 8, or 9. The
10 Department of Revenue shall impose a civil penalty not to
11 exceed $5,000 on any person engaged in the business of selling
12 cigarettes who ships or causes to be shipped any such
13 cigarettes to any person in this State in violation of
14 subsection (d) of Section 5.
15     (c) All cigarettes sold or attempted to be sold in a
16 delivery sale that does not meet the requirements of this Act
17 shall be forfeited to the State. All cigarettes forfeited to
18 this State under this Act shall be destroyed. The Department
19 may, prior to any destruction of cigarettes, permit the true
20 holder of the trademark rights in the cigarette brand to
21 inspect such contraband cigarettes, in order to assist the
22 Department in any investigation regarding such cigarettes.
23     (d) (c) Any person aggrieved by any decision of the
24 Department of Revenue may, within 60 days after notice of that
25 decision, protest in writing and request a hearing. The
26 Department of Revenue shall give notice to the person of the

 

 

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1 time and place for the hearing and shall hold a hearing before
2 it issues a final administrative decision. Absent a written
3 protest within 60 days, the Department's decision shall become
4 final without any further determination made or notice given.
5 (Source: P.A. 93-960, eff. 8-20-04.)
 
6     (720 ILCS 678/20 new)
7     Sec. 20. Tip line.
8     (a) Not later than 120 days after the effective date of
9 this amendatory Act of the 95th General Assembly, the
10 Department shall establish, publicize, and maintain a
11 toll-free telephone number to receive information related to
12 the sale and delivery of contraband cigarettes.
13     (b) The Attorney General may pay a reward of up to $5,000
14 to any person who furnishes information leading to the
15 Department's collection of excise taxes imposed upon delivery
16 sales which otherwise would not have been collected but for the
17 information provided by the person.
 
18     (720 ILCS 678/25 new)
19     Sec. 25. Construction. The requirements imposed by this Act
20 shall not apply where such application would be contrary to the
21 Constitution and laws of the United States.
 
22     (720 ILCS 678/30 new)
23     Sec. 30. Severability. If any provision of this Act is for

 

 

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1 any reason held to be unconstitutional or invalid, such holding
2 shall not affect the constitutionality or validity of the
3 remaining provisions of this Act, and to this end the
4 provisions of this Act are expressly declared to be severable.
 
5     (720 ILCS 678/35 new)
6     Sec. 35. Rulemaking. Rulemaking authority to implement
7 this amendatory Act of the 95th General Assembly, if any, is
8 conditioned on the rules being adopted in accordance with all
9 provisions of the Illinois Administrative Procedure Act and all
10 rules and procedures of the Joint Committee on Administrative
11 Rules; any purported rule not so adopted, for whatever reason,
12 is unauthorized.
 
13     Section 99. Effective date. This Act takes effect January
14 1, 2010.