HB2513 EnrolledLRB099 05839 SXM 25883 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cigarette Tax Act is amended by changing
5Sections 4g, 6, 11, and 11c as follows:
 
6    (35 ILCS 130/4g)
7    (This Section may contain text from a Public Act with a
8delayed effective date)
9    Sec. 4g. Retailer's license. Beginning on January 1, 2016,
10no person may engage in business as a retailer of cigarettes in
11this State without first having obtained a license from the
12Department. Application for license shall be made to the
13Department, by electronic means, in a form prescribed by the
14Department. Each applicant for a license under this Section
15shall furnish to the Department, in an electronic format
16established by the Department, the following information:
17        (1) the name and address of the applicant;
18        (2) the address of the location at which the applicant
19    proposes to engage in business as a retailer of cigarettes
20    in this State; and
21        (3) such other additional information as the
22    Department may lawfully require by its rules and
23    regulations.

 

 

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1    The annual license fee payable to the Department for each
2retailer's license shall be $75. The fee shall be deposited
3into the Tax Compliance and Administration Fund and shall be
4for the cost of tobacco retail inspection and contraband
5tobacco and tobacco smuggling with at least two-thirds of the
6money being used for contraband tobacco and tobacco smuggling
7operations and enforcement.
8    Each applicant for a license shall pay the fee to the
9Department at the time of submitting its application for a
10license to the Department. The Department shall require an
11applicant for a license under this Section to electronically
12file and pay the fee.
13    A separate annual license fee shall be paid for each place
14of business at which a person who is required to procure a
15retailer's license under this Section proposes to engage in
16business as a retailer in Illinois under this Act.
17    The following are ineligible to receive a retailer's
18license under this Act:
19        (1) a person who has been convicted of a felony related
20    to the illegal transportation, sale, or distribution of
21    cigarettes, or a tobacco-related felony, under any federal
22    or State law, if the Department, after investigation and a
23    hearing if requested by the applicant, determines that the
24    person has not been sufficiently rehabilitated to warrant
25    the public trust; or
26        (2) a corporation, if any officer, manager, or director

 

 

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1    thereof, or any stockholder or stockholders owning in the
2    aggregate more than 5% of the stock of such corporation,
3    would not be eligible to receive a license under this Act
4    for any reason.
5    The Department, upon receipt of an application and license
6fee, in proper form, from a person who is eligible to receive a
7retailer's license under this Act, shall issue to such
8applicant a license in form as prescribed by the Department.
9That license shall permit the applicant to whom it is issued to
10engage in business as a retailer under this Act at the place
11shown in his or her application. All licenses issued by the
12Department under this Section shall be valid for a period not
13to exceed one year after issuance unless sooner revoked,
14canceled, or suspended as provided in this Act. No license
15issued under this Section is transferable or assignable. The
16license shall be conspicuously displayed in the place of
17business conducted by the licensee in Illinois under such
18license. The Department shall not issue a retailer's license to
19a retailer unless the retailer is also registered under the
20Retailers' Occupation Tax Act. A person who obtains a license
21as a retailer who ceases to do business as specified in the
22license, or who never commenced business, or who obtains a
23distributor's license, or whose license is suspended or
24revoked, shall immediately surrender the license to the
25Department.
26    Any person aggrieved by any decision of the Department

 

 

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1under this Section subsection may, within 30 days after notice
2of the decision, protest and request a hearing. Upon receiving
3a request for a hearing, the Department shall give written
4notice to the person requesting the hearing of the time and
5place fixed for the hearing and shall hold a hearing in
6conformity with the provisions of this Act and then issue its
7final administrative decision in the matter to that person. In
8the absence of a protest and request for a hearing within 30
9days, the Department's decision shall become final without any
10further determination being made or notice given.
11(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 
12    (35 ILCS 130/6)  (from Ch. 120, par. 453.6)
13    (Text of Section before amendment by P.A. 98-1055)
14    Sec. 6. Revocation, cancellation, or suspension of
15license. The Department may, after notice and hearing as
16provided for by this Act, revoke, cancel or suspend the license
17of any distributor or secondary distributor for the violation
18of any provision of this Act, or for noncompliance with any
19provision herein contained, or for any noncompliance with any
20lawful rule or regulation promulgated by the Department under
21Section 8 of this Act, or because the licensee is determined to
22be ineligible for a distributor's license for any one or more
23of the reasons provided for in Section 4 of this Act, or
24because the licensee is determined to be ineligible for a
25secondary distributor's license for any one or more of the

 

 

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1reasons provided for in Section 4c of this Act. However, no
2such license shall be revoked, cancelled or suspended, except
3after a hearing by the Department with notice to the
4distributor or secondary distributor, as aforesaid, and
5affording such distributor or secondary distributor a
6reasonable opportunity to appear and defend, and any
7distributor or secondary distributor aggrieved by any decision
8of the Department with respect thereto may have the
9determination of the Department judicially reviewed, as herein
10provided.
11    The Department may revoke, cancel, or suspend the license
12of any distributor for a violation of the Tobacco Product
13Manufacturers' Escrow Enforcement Act as provided in Section 30
14of that Act. The Department may revoke, cancel, or suspend the
15license of any secondary distributor for a violation of
16subsection (e) of Section 15 of the Tobacco Product
17Manufacturers' Escrow Enforcement Act.
18    Any distributor or secondary distributor aggrieved by any
19decision of the Department under this Section may, within 20
20days after notice of the decision, protest and request a
21hearing. Upon receiving a request for a hearing, the Department
22shall give notice in writing to the distributor or secondary
23distributor requesting the hearing that contains a statement of
24the charges preferred against the distributor or secondary
25distributor and that states the time and place fixed for the
26hearing. The Department shall hold the hearing in conformity

 

 

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1with the provisions of this Act and then issue its final
2administrative decision in the matter to the distributor or
3secondary distributor. In the absence of a protest and request
4for a hearing within 20 days, the Department's decision shall
5become final without any further determination being made or
6notice given.
7    No license so revoked, as aforesaid, shall be reissued to
8any such distributor or secondary distributor within a period
9of 6 months after the date of the final determination of such
10revocation. No such license shall be reissued at all so long as
11the person who would receive the license is ineligible to
12receive a distributor's license under this Act for any one or
13more of the reasons provided for in Section 4 of this Act or is
14ineligible to receive a secondary distributor's license under
15this Act for any one or more of the reasons provided for in
16Section 4c of this Act.
17    The Department upon complaint filed in the circuit court
18may by injunction restrain any person who fails, or refuses, to
19comply with any of the provisions of this Act from acting as a
20distributor or secondary distributor of cigarettes in this
21State.
22(Source: P.A. 96-1027, eff. 7-12-10.)
 
23    (Text of Section after amendment by P.A. 98-1055)
24    Sec. 6. Revocation, cancellation, or suspension of
25license. The Department may, after notice and hearing as

 

 

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1provided for by this Act, revoke, cancel or suspend the license
2of any distributor, secondary distributor, or retailer for the
3violation of any provision of this Act, or for noncompliance
4with any provision herein contained, or for any noncompliance
5with any lawful rule or regulation promulgated by the
6Department under Section 8 of this Act, or because the licensee
7is determined to be ineligible for a distributor's license for
8any one or more of the reasons provided for in Section 4 of
9this Act, or because the licensee is determined to be
10ineligible for a secondary distributor's license for any one or
11more of the reasons provided for in Section 4c of this Act, or
12because the licensee is determined to be ineligible for a
13retailer's license for any one or more of the reasons provided
14for in Section 4g of this Act. However, no such license shall
15be revoked, cancelled or suspended, except after a hearing by
16the Department with notice to the distributor, secondary
17distributor, or retailer, as aforesaid, and affording such
18distributor, secondary distributor, or retailer a reasonable
19opportunity to appear and defend, and any distributor,
20secondary distributor, or retailer aggrieved by any decision of
21the Department with respect thereto may have the determination
22of the Department judicially reviewed, as herein provided.
23    The Department may revoke, cancel, or suspend the license
24of any distributor for a violation of the Tobacco Product
25Manufacturers' Escrow Enforcement Act as provided in Section 30
26of that Act. The Department may revoke, cancel, or suspend the

 

 

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1license of any secondary distributor for a violation of
2subsection (e) of Section 15 of the Tobacco Product
3Manufacturers' Escrow Enforcement Act.
4    If the retailer has a training program that facilitates
5compliance with minimum-age tobacco laws, the Department shall
6suspend for 3 days the license of that retailer for a fourth or
7subsequent violation of the Prevention of Tobacco Use by Minors
8and Sale and Distribution of Tobacco Products Act, as provided
9in subsection (a) of Section 2 of that Act. For the purposes of
10this Section, any violation of subsection (a) of Section 2 of
11the Prevention of Tobacco Use by Minors and Sale and
12Distribution of Tobacco Products Act occurring at the
13retailer's licensed location during a 24-month period shall be
14counted as a violation against the retailer.
15    If the retailer does not have a training program that
16facilitates compliance with minimum-age tobacco laws, the
17Department shall suspend for 3 days the license of that
18retailer for a second violation of the Prevention of Tobacco
19Use by Minors and Sale and Distribution of Tobacco Products
20Act, as provided in subsection (a-5) of Section 2 of that Act.
21    If the retailer does not have a training program that
22facilitates compliance with minimum-age tobacco laws, the
23Department shall suspend for 7 days the license of that
24retailer for a third violation of the Prevention of Tobacco Use
25by Minors and Sale and Distribution of Tobacco Products Act, as
26provided in subsection (a-5) of Section 2 of that Act.

 

 

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1    If the retailer does not have a training program that
2facilitates compliance with minimum-age tobacco laws, the
3Department shall suspend for 30 days the license of a retailer
4for a fourth or subsequent violation of the Prevention of
5Tobacco Use by Minors and Sale and Distribution of Tobacco
6Products Act, as provided in subsection (a-5) of Section 2 of
7that Act.
8    A training program that facilitates compliance with
9minimum-age tobacco laws must include at least the following
10elements: (i) it must explain that only individuals displaying
11valid identification demonstrating that they are 18 years of
12age or older shall be eligible to purchase cigarettes or
13tobacco products and ; (ii) it must explain where a clerk can
14check identification for a date of birth; and (iii) it must
15explain the penalties that a clerk and retailer are subject to
16for violations of the Prevention of Tobacco Use by Minors and
17Sale and Distribution of Tobacco Products Act. The training may
18be conducted electronically. Each retailer that has a training
19program shall require each employee who completes the training
20program to sign a form attesting that the employee has received
21and completed tobacco training. The form shall be kept in the
22employee's file and may be used to provide proof of training.
23    Any distributor, secondary distributor, or retailer
24aggrieved by any decision of the Department under this Section
25may, within 20 days after notice of the decision, protest and
26request a hearing. Upon receiving a request for a hearing, the

 

 

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1Department shall give notice in writing to the distributor,
2secondary distributor, or retailer requesting the hearing that
3contains a statement of the charges preferred against the
4distributor, secondary distributor, or retailer and that
5states the time and place fixed for the hearing. The Department
6shall hold the hearing in conformity with the provisions of
7this Act and then issue its final administrative decision in
8the matter to the distributor, secondary distributor, or
9retailer. In the absence of a protest and request for a hearing
10within 20 days, the Department's decision shall become final
11without any further determination being made or notice given.
12    No license so revoked, as aforesaid, shall be reissued to
13any such distributor, secondary distributor, or retailer
14within a period of 6 months after the date of the final
15determination of such revocation. No such license shall be
16reissued at all so long as the person who would receive the
17license is ineligible to receive a distributor's license under
18this Act for any one or more of the reasons provided for in
19Section 4 of this Act, is ineligible to receive a secondary
20distributor's license under this Act for any one or more of the
21reasons provided for in Section 4c of this Act, or is
22determined to be ineligible for a retailer's license under the
23Act for any one or more of the reasons provided for in Section
244g of this Act.
25    The Department upon complaint filed in the circuit court
26may by injunction restrain any person who fails, or refuses, to

 

 

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1comply with any of the provisions of this Act from acting as a
2distributor, secondary distributor, or retailer of cigarettes
3in this State.
4(Source: P.A. 98-1055, eff. 1-1-16.)
 
5    (35 ILCS 130/11)  (from Ch. 120, par. 453.11)
6    (Text of Section before amendment by P.A. 98-1055)
7    Sec. 11. Every distributor of cigarettes, who is required
8to procure a license under this Act, shall keep within
9Illinois, at his licensed address, complete and accurate
10records of cigarettes held, purchased, manufactured, brought
11in or caused to be brought in from without the State, and sold,
12or otherwise disposed of, and shall preserve and keep within
13Illinois at his licensed address all invoices, bills of lading,
14sales records, copies of bills of sale, inventory at the close
15of each period for which a return is required of all cigarettes
16on hand and of all cigarette revenue stamps, both affixed and
17unaffixed, and other pertinent papers and documents relating to
18the manufacture, purchase, sale or disposition of cigarettes.
19All books and records and other papers and documents that are
20required by this Act to be kept shall be kept in the English
21language, and shall, at all times during the usual business
22hours of the day, be subject to inspection by the Department or
23its duly authorized agents and employees. The Department may
24adopt rules that establish requirements, including record
25forms and formats, for records required to be kept and

 

 

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1maintained by taxpayers. For purposes of this Section,
2"records" means all data maintained by the taxpayer, including
3data on paper, microfilm, microfiche or any type of
4machine-sensible data compilation. Those books, records,
5papers and documents shall be preserved for a period of at
6least 3 years after the date of the documents, or the date of
7the entries appearing in the records, unless the Department, in
8writing, authorizes their destruction or disposal at an earlier
9date. At all times during the usual business hours of the day
10any duly authorized agent or employee of the Department may
11enter any place of business of the distributor, without a
12search warrant, and inspect the premises and the stock or
13packages of cigarettes and the vending devices therein
14contained, to determine whether any of the provisions of this
15Act are being violated. If such agent or employee is denied
16free access or is hindered or interfered with in making such
17examination as herein provided, the license of the distributor
18at such premises shall be subject to revocation by the
19Department.
20(Source: P.A. 88-480.)
 
21    (Text of Section after amendment by P.A. 98-1055)
22    Sec. 11. Every distributor of cigarettes, who is required
23to procure a license under this Act, shall keep within
24Illinois, at his licensed address, complete and accurate
25records of cigarettes held, purchased, manufactured, brought

 

 

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1in or caused to be brought in from without the State, and sold,
2or otherwise disposed of, and shall preserve and keep within
3Illinois at his licensed address all invoices, bills of lading,
4sales records, copies of bills of sale, inventory at the close
5of each period for which a return is required of all cigarettes
6on hand and of all cigarette revenue stamps, both affixed and
7unaffixed, and other pertinent papers and documents relating to
8the manufacture, purchase, sale or disposition of cigarettes.
9Every sales invoice issued by a licensed distributor to a
10retailer in this State shall contain the distributor's
11cigarette distributor license number unless the distributor
12has been granted a waiver by the Department in response to a
13written request in cases where (i) the distributor sells
14cigarettes only to licensed retailers that are wholly-owned by
15the distributor or owned by a wholly-owned subsidiary of the
16distributor; (ii) the licensed retailer obtains cigarettes
17only from the distributor requesting the waiver; and (iii) the
18distributor affixes the tax stamps to the original packages of
19cigarettes sold to the licensed retailer. The distributor shall
20file a written request with the Department, and, if the
21Department determines that the distributor meets the
22conditions for a waiver, the Department shall grant the waiver.
23All books and records and other papers and documents that are
24required by this Act to be kept shall be kept in the English
25language, and shall, at all times during the usual business
26hours of the day, be subject to inspection by the Department or

 

 

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1its duly authorized agents and employees. The Department may
2adopt rules that establish requirements, including record
3forms and formats, for records required to be kept and
4maintained by taxpayers. For purposes of this Section,
5"records" means all data maintained by the taxpayer, including
6data on paper, microfilm, microfiche or any type of
7machine-sensible data compilation. Those books, records,
8papers and documents shall be preserved for a period of at
9least 3 years after the date of the documents, or the date of
10the entries appearing in the records, unless the Department, in
11writing, authorizes their destruction or disposal at an earlier
12date. At all times during the usual business hours of the day
13any duly authorized agent or employee of the Department may
14enter any place of business of the distributor, without a
15search warrant, and inspect the premises and the stock or
16packages of cigarettes and the vending devices therein
17contained, to determine whether any of the provisions of this
18Act are being violated. If such agent or employee is denied
19free access or is hindered or interfered with in making such
20examination as herein provided, the license of the distributor
21at such premises shall be subject to revocation by the
22Department.
23(Source: P.A. 98-1055, eff. 1-1-16.)
 
24    (35 ILCS 130/11c)
25    (This Section may contain text from a Public Act with a

 

 

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1delayed effective date)
2    Sec. 11c. Retailers; records. Every retailer who is
3required to procure a license under this Act shall keep within
4Illinois complete and accurate records of cigarettes
5purchased, sold, or otherwise disposed of. It shall be the duty
6of every retail licensee to make sales records, copies of bills
7of sale, and inventory at the close of each period for which a
8report is required of all cigarettes on hand available upon
9reasonable notice for the purpose of investigation and control
10by the Department. Such records need not be maintained on the
11licensed premises, but must be maintained in the State of
12Illinois; however, if access is available electronically, the
13records may be maintained out of state. However, all original
14invoices or copies thereof covering purchases of cigarettes
15must be retained on the licensed premises for a period of 90
16days after such purchase, unless the Department has granted a
17waiver in response to a written request in cases where records
18are kept at a central business location within the State of
19Illinois or in cases where records that are available
20electronically are maintained out of state. The Department may
21adopt rules that establish requirements, including record
22forms and formats, for records required to be kept and
23maintained by the retailer. The Department shall adopt rules
24regarding the eligibility for a waiver, revocation of a waiver,
25and requirements and standards for maintenance and
26accessibility of records located at a central location

 

 

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1out-of-State pursuant to a waiver provided under this Section.
2    For purposes of this Section, "records" means all data
3maintained by the retailer, including data on paper, microfilm,
4microfiche or any type of machine sensible data compilation.
5Those books, records, papers, and documents shall be preserved
6for a period of at least 3 years after the date of the
7documents, or the date of the entries appearing in the records,
8unless the Department, in writing, authorizes their
9destruction or disposal at an earlier date. At all times during
10the usual business hours of the day, any duly authorized agent
11or employee of the Department may enter any place of business
12of the retailer without a search warrant and may inspect the
13premises to determine whether any of the provisions of this Act
14are being violated. If such agent or employee is denied free
15access or is hindered or interfered with in making such
16examination as herein provided, the license of the retailer
17shall be subject to suspension or revocation by the Department.
18(Source: P.A. 98-1055, eff. 1-1-16.)
 
19    Section 10. The Tobacco Products Tax Act of 1995 is amended
20by changing Sections 10-21, 10-25, and 10-35 as follows:
 
21    (35 ILCS 143/10-21)
22    (This Section may contain text from a Public Act with a
23delayed effective date)
24    Sec. 10-21. Retailer's license. Beginning on January 1,

 

 

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12016, no person may engage in business as a retailer of tobacco
2products in this State without first having obtained a license
3from the Department. Application for license shall be made to
4the Department, by electronic means, in a form prescribed by
5the Department. Each applicant for a license under this Section
6shall furnish to the Department, in an electronic format
7established by the Department, the following information:
8        (1) the name and address of the applicant;
9        (2) the address of the location at which the applicant
10    proposes to engage in business as a retailer of tobacco
11    products in this State;
12        (3) such other additional information as the
13    Department may lawfully require by its rules and
14    regulations.
15    The annual license fee payable to the Department for each
16retailer's license shall be $75. The fee will be deposited into
17the Tax Compliance and Administration Fund and shall be used
18for the cost of tobacco retail inspection and contraband
19tobacco and tobacco smuggling with at least two-thirds of the
20money being used for contraband tobacco and tobacco smuggling
21operations and enforcement.
22    Each applicant for license shall pay such fee to the
23Department at the time of submitting its application for
24license to the Department. The Department shall require an
25applicant for a license under this Section to electronically
26file and pay the fee.

 

 

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1    A separate annual license fee shall be paid for each place
2of business at which a person who is required to procure a
3retailer's license under this Section proposes to engage in
4business as a retailer in Illinois under this Act.
5    The following are ineligible to receive a retailer's
6license under this Act:
7        (1) a person who has been convicted of a felony under
8    any federal or State law for smuggling cigarettes or
9    tobacco products or tobacco tax evasion, if the Department,
10    after investigation and a hearing if requested by the
11    applicant, determines that such person has not been
12    sufficiently rehabilitated to warrant the public trust;
13    and
14        (2) a corporation, if any officer, manager or director
15    thereof, or any stockholder or stockholders owning in the
16    aggregate more than 5% of the stock of such corporation,
17    would not be eligible to receive a license under this Act
18    for any reason.
19    The Department, upon receipt of an application and license
20fee, in proper form, from a person who is eligible to receive a
21retailer's license under this Act, shall issue to such
22applicant a license in form as prescribed by the Department,
23which license shall permit the applicant to which it is issued
24to engage in business as a retailer under this Act at the place
25shown in his application. All licenses issued by the Department
26under this Section shall be valid for a period not to exceed

 

 

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1one year after issuance unless sooner revoked, canceled or
2suspended as provided in this Act. No license issued under this
3Section is transferable or assignable. Such license shall be
4conspicuously displayed in the place of business conducted by
5the licensee in Illinois under such license. A person who
6obtains a license as a retailer who ceases to do business as
7specified in the license, or who never commenced business, or
8who obtains a distributor's license, or whose license is
9suspended or revoked, shall immediately surrender the license
10to the Department. The Department shall not issue a license to
11a retailer unless the retailer is also validly registered under
12the Retailers Occupation Tax Act.
13    A retailer as defined under this Act need not obtain an
14additional license under this Act, but shall be deemed to be
15sufficiently licensed by virtue of his being properly licensed
16as a retailer under Section 4g of the Cigarette Tax Act.
17    Any person aggrieved by any decision of the Department
18under this Section subsection may, within 30 days after notice
19of the decision, protest and request a hearing. Upon receiving
20a request for a hearing, the Department shall give notice to
21the person requesting the hearing of the time and place fixed
22for the hearing and shall hold a hearing in conformity with the
23provisions of this Act and then issue its final administrative
24decision in the matter to that person. In the absence of a
25protest and request for a hearing within 30 days, the
26Department's decision shall become final without any further

 

 

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1determination being made or notice given.
2(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 
3    (35 ILCS 143/10-25)
4    (Text of Section before amendment by P.A. 98-1055)
5    Sec. 10-25. License actions. The Department may, after
6notice and a hearing, revoke, cancel, or suspend the license of
7any distributor who violates any of the provisions of this Act.
8The notice shall specify the alleged violation or violations
9upon which the revocation, cancellation, or suspension
10proceeding is based.
11    The Department may revoke, cancel, or suspend the license
12of any distributor for a violation of the Tobacco Product
13Manufacturers' Escrow Enforcement Act as provided in Section 20
14of that Act.
15    The Department may, by application to any circuit court,
16obtain an injunction restraining any person who engages in
17business as a distributor of tobacco products without a license
18(either because his or her license has been revoked, canceled,
19or suspended or because of a failure to obtain a license in the
20first instance) from engaging in that business until that
21person, as if that person were a new applicant for a license,
22complies with all of the conditions, restrictions, and
23requirements of Section 10-20 of this Act and qualifies for and
24obtains a license. Refusal or neglect to obey the order of the
25court may result in punishment for contempt.

 

 

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1(Source: P.A. 92-737, eff. 7-25-02.)
 
2    (Text of Section after amendment by P.A. 98-1055)
3    Sec. 10-25. License actions.
4    (a) The Department may, after notice and a hearing, revoke,
5cancel, or suspend the license of any distributor or retailer
6who violates any of the provisions of this Act. The notice
7shall specify the alleged violation or violations upon which
8the revocation, cancellation, or suspension proceeding is
9based.
10    (b) The Department may revoke, cancel, or suspend the
11license of any distributor for a violation of the Tobacco
12Product Manufacturers' Escrow Enforcement Act as provided in
13Section 20 of that Act.
14    (c) If the retailer has a training program that facilitates
15compliance with minimum-age tobacco laws, the Department shall
16suspend for 3 days the license of that retailer for a fourth or
17subsequent violation of the Prevention of Tobacco Use by Minors
18and Sale and Distribution of Tobacco Products Act, as provided
19in subsection (a) of Section 2 of that Act. For the purposes of
20this Section, any violation of subsection (a) of Section 2 of
21the Prevention of Tobacco Use by Minors and Sale and
22Distribution of Tobacco Products Act occurring at the
23retailer's licensed location, during a 24-month period, shall
24be counted as a violation against the retailer.
25    If the retailer does not have a training program that

 

 

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1facilitates compliance with minimum-age tobacco laws, the
2Department shall suspend for 3 days the license of that
3retailer for a second violation of the Prevention of Tobacco
4Use by Minors and Sale and Distribution of Tobacco Products
5Act, as provided in subsection (a-5) of Section 2 of that Act.
6    If the retailer does not have a training program that
7facilitates compliance with minimum-age tobacco laws, the
8Department shall suspend for 7 days the license of that
9retailer for a third violation of the Prevention of Tobacco Use
10by Minors and Sale and Distribution of Tobacco Products Act, as
11provided in subsection (a-5) of Section 2 of that Act.
12    If the retailer does not have a training program that
13facilitates compliance with minimum-age tobacco laws, the
14Department shall suspend for 30 days the license of a retailer
15for a fourth or subsequent violation of the Prevention of
16Tobacco Use by Minors and Sale and Distribution of Tobacco
17Products Act, as provided in subsection (a-5) of Section 2 of
18that Act.
19    A training program that facilitates compliance with
20minimum-age tobacco laws must include at least the following
21elements: (i) it must explain that only individuals displaying
22valid identification demonstrating that they are 18 years of
23age or older shall be eligible to purchase cigarettes or
24tobacco products and ; (ii) it must explain where a clerk can
25check identification for a date of birth; and (iii) it must
26explain the penalties that a clerk and retailer are subject to

 

 

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1for violations of the Prevention of Tobacco Use by Minors and
2Sale and Distribution of Tobacco Products Act. The training may
3be conducted electronically. Each retailer that has a training
4program shall require each employee who completes the training
5program to sign a form attesting that the employee has received
6and completed tobacco training. The form shall be kept in the
7employee's file and may be used to provide proof of training.
8    (d) The Department may, by application to any circuit
9court, obtain an injunction restraining any person who engages
10in business as a distributor of tobacco products without a
11license (either because his or her license has been revoked,
12canceled, or suspended or because of a failure to obtain a
13license in the first instance) from engaging in that business
14until that person, as if that person were a new applicant for a
15license, complies with all of the conditions, restrictions, and
16requirements of Section 10-20 of this Act and qualifies for and
17obtains a license. Refusal or neglect to obey the order of the
18court may result in punishment for contempt.
19(Source: P.A. 98-1055, eff. 1-1-16.)
 
20    (35 ILCS 143/10-35)
21    (Text of Section before amendment by P.A. 98-1055)
22    Sec. 10-35. Record keeping. Every distributor, as defined
23in Section 10-5, shall keep complete and accurate records of
24tobacco products held, purchased, manufactured, brought in or
25caused to be brought in from without the State, and tobacco

 

 

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1products sold, or otherwise disposed of, and shall preserve and
2keep all invoices, bills of lading, sales records, and copies
3of bills of sale, the wholesale price for tobacco products sold
4or otherwise disposed of, an inventory of tobacco products
5prepared as of December 31 of each year or as of the last day of
6the distributor's fiscal year if he or she files federal income
7tax returns on the basis of a fiscal year, and other pertinent
8papers and documents relating to the manufacture, purchase,
9sale, or disposition of tobacco products. Books, records,
10papers, and documents that are required by this Act to be kept
11shall, at all times during the usual business hours of the day,
12be subject to inspection by the Department or its duly
13authorized agents and employees. The books, records, papers,
14and documents for any period with respect to which the
15Department is authorized to issue a notice of tax liability
16shall be preserved until the expiration of that period.
17(Source: P.A. 89-21, eff. 6-6-95.)
 
18    (Text of Section after amendment by P.A. 98-1055)
19    Sec. 10-35. Record keeping.
20    (a) Every distributor, as defined in Section 10-5, shall
21keep complete and accurate records of tobacco products held,
22purchased, manufactured, brought in or caused to be brought in
23from without the State, and tobacco products sold, or otherwise
24disposed of, and shall preserve and keep all invoices, bills of
25lading, sales records, and copies of bills of sale, the

 

 

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1wholesale price for tobacco products sold or otherwise disposed
2of, an inventory of tobacco products prepared as of December 31
3of each year or as of the last day of the distributor's fiscal
4year if he or she files federal income tax returns on the basis
5of a fiscal year, and other pertinent papers and documents
6relating to the manufacture, purchase, sale, or disposition of
7tobacco products. Every sales invoice issued by a licensed
8distributor to a retailer in this State shall contain the
9distributor's Tobacco Products License number unless the
10distributor has been granted a waiver by the Department in
11response to a written request in cases where (i) the
12distributor sells little cigars or other tobacco products only
13to licensed retailers that are wholly-owned by the distributor
14or owned by a wholly-owned subsidiary of the distributor; (ii)
15the licensed retailer obtains little cigars or other tobacco
16products only from the distributor requesting the waiver; and
17(iii) the distributor affixes the tax stamps to the original
18packages of little cigars or has or will pay the tax on the
19other tobacco products sold to the licensed retailer. The
20distributor shall file a written request with the Department,
21and, if the Department determines that the distributor meets
22the conditions for a waiver, the Department shall grant the
23waiver.
24    (b) Every retailer, as defined in Section 10-5, shall keep
25complete and accurate records of tobacco products held,
26purchased, sold, or otherwise disposed of, and shall preserve

 

 

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1and keep all invoices, bills of lading, sales records, and
2copies of bills of sale, returns and other pertinent papers and
3documents relating to the purchase, sale, or disposition of
4tobacco products. Such records need not be maintained on the
5licensed premises, but must be maintained in the State of
6Illinois; however, if access is available electronically, the
7records may be maintained out of state. However, all original
8invoices or copies thereof covering purchases of tobacco
9products must be retained on the licensed premises for a period
10of 90 days after such purchase, unless the Department has
11granted a waiver in response to a written request in cases
12where records are kept at a central business location within
13the State of Illinois or in cases where records that are
14available electronically are maintained out of state. The
15Department shall adopt rules regarding the eligibility for a
16waiver, revocation of a waiver, and requirements and standards
17for maintenance and accessibility of records located at a
18central location out-of-State pursuant to a waiver provided
19under this Section.
20    (c) Books, records, papers, and documents that are required
21by this Act to be kept shall, at all times during the usual
22business hours of the day, be subject to inspection by the
23Department or its duly authorized agents and employees. The
24books, records, papers, and documents for any period with
25respect to which the Department is authorized to issue a notice
26of tax liability shall be preserved until the expiration of

 

 

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1that period.
2(Source: P.A. 98-1055, eff. 1-1-16.)
 
3    Section 15. The Prevention of Tobacco Use by Minors and
4Sale and Distribution of Tobacco Products Act is amended by
5changing Section 2 as follows:
 
6    (720 ILCS 675/2)  (from Ch. 23, par. 2358)
7    (Text of Section before amendment by P.A. 98-1055)
8    Sec. 2. Penalties.
9    (a) Any person who violates subsection (a), (a-5), or (a-6)
10of Section 1 or Section 1.5 of this Act is guilty of a petty
11offense and for the first offense shall be fined $200, $400 for
12the second offense in a 12-month period, and $600 for the third
13or any subsequent offense in a 12-month period.
14    (b) If a minor violates subsection (a-7) of Section 1 he or
15she is guilty of a petty offense and the court may impose a
16sentence of 15 hours of community service or a fine of $25 for
17a first violation.
18    (c) A second violation by a minor of subsection (a-7) of
19Section 1 that occurs within 12 months after the first
20violation is punishable by a fine of $50 and 25 hours of
21community service.
22    (d) A third or subsequent violation by a minor of
23subsection (a-7) of Section 1 that occurs within 12 months
24after the first violation is punishable by a $100 fine and 30

 

 

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1hours of community service.
2    (e) Any second or subsequent violation not within the
312-month time period after the first violation is punishable as
4provided for a first violation.
5    (f) If a minor is convicted of or placed on supervision for
6a violation of subsection (a-7) of Section 1, the court may, in
7its discretion, and upon recommendation by the State's
8Attorney, order that minor and his or her parents or legal
9guardian to attend a smoker's education or youth diversion
10program if that program is available in the jurisdiction where
11the offender resides. Attendance at a smoker's education or
12youth diversion program shall be time-credited against any
13community service time imposed for any first violation of
14subsection (a-7) of Section 1. In addition to any other penalty
15that the court may impose for a violation of subsection (a-7)
16of Section 1, the court, upon request by the State's Attorney,
17may in its discretion require the offender to remit a fee for
18his or her attendance at a smoker's education or youth
19diversion program.
20    (g) For purposes of this Section, "smoker's education
21program" or "youth diversion program" includes, but is not
22limited to, a seminar designed to educate a person on the
23physical and psychological effects of smoking tobacco products
24and the health consequences of smoking tobacco products that
25can be conducted with a locality's youth diversion program.
26    (h) All moneys collected as fines for violations of

 

 

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1subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
2distributed in the following manner:
3        (1) one-half of each fine shall be distributed to the
4    unit of local government or other entity that successfully
5    prosecuted the offender; and
6        (2) one-half shall be remitted to the State to be used
7    for enforcing this Act.
8(Source: P.A. 98-350, eff. 1-1-14.)
 
9    (Text of Section after amendment by P.A. 98-1055)
10    Sec. 2. Penalties.
11    (a) Any person who violates subsection (a) or (a-5) of
12Section 1 or Section 1.5 of this Act is guilty of a petty
13offense. For the first offense in a 24-month period, the person
14shall be fined $200 if his or her employer has a training
15program that facilitates compliance with minimum-age tobacco
16laws. For the second offense in a 24-month period, the person
17shall be fined $400 if his or her employer has a training
18program that facilitates compliance with minimum-age tobacco
19laws. For the third offense in a 24-month period, the person
20shall be fined $600 if his or her employer has a training
21program that facilitates compliance with minimum-age tobacco
22laws. For the fourth or subsequent offense in a 24-month
23period, the person shall be fined $800 if his or her employer
24has a training program that facilitates compliance with
25minimum-age tobacco laws. For the purposes of this subsection,

 

 

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1the 24-month period shall begin with the person's first
2violation of the Act. The penalties in this subsection are in
3addition to any other penalties prescribed under the Cigarette
4Tax Act and the Tobacco Products Tax Act of 1995.
5    (a-5) Any person who violates subsection (a) or (a-5) of
6Section 1 or Section 1.5 of this Act is guilty of a petty
7offense. For the first offense, the retailer shall be fined
8$200 if it does not have a training program that facilitates
9compliance with minimum-age tobacco laws. For the second
10offense, the retailer shall be fined $400 if it does not have a
11training program that facilitates compliance with minimum-age
12tobacco laws. For the third offense, the retailer shall be
13fined $600 if it does not have a training program that
14facilitates compliance with minimum-age tobacco laws. For the
15fourth or subsequent offense in a 24-month period, the retailer
16shall be fined $800 if it does not have a training program that
17facilitates compliance with minimum-age tobacco laws. For the
18purposes of this subsection, the 24-month period shall begin
19with the person's first violation of the Act. The penalties in
20this subsection are in addition to any other penalties
21prescribed under the Cigarette Tax Act and the Tobacco Products
22Tax Act of 1995.
23    (a-6) For the purpose of this Act, a training program that
24facilitates compliance with minimum-age tobacco laws must
25include at least the following elements: (i) it must explain
26that only individuals displaying valid identification

 

 

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1demonstrating that they are 18 years of age or older shall be
2eligible to purchase cigarettes or tobacco products and ; (ii)
3it must explain where a clerk can check identification for a
4date of birth; and (iii) it must explain the penalties that a
5clerk and retailer are subject to for violations of the
6Prevention of Tobacco Use by Minors and Sale and Distribution
7of Tobacco Products Act. The training may be conducted
8electronically. Each retailer that has a training program shall
9require each employee who completes the training program to
10sign a form attesting that the employee has received and
11completed tobacco training. The form shall be kept in the
12employee's file and may be used to provide proof of training.
13    (b) If a minor violates subsection (a-7) of Section 1 he or
14she is guilty of a petty offense and the court may impose a
15sentence of 25 hours of community service and a fine of $50 for
16a first violation. If a minor violates subsection (a-6) of
17Section 1, he or she is guilty of a Class A misdemeanor.
18    (c) A second violation by a minor of subsection (a-7) of
19Section 1 that occurs within 12 months after the first
20violation is punishable by a fine of $75 and 50 hours of
21community service.
22    (d) A third or subsequent violation by a minor of
23subsection (a-7) of Section 1 that occurs within 12 months
24after the first violation is punishable by a $200 fine and 50
25hours of community service.
26    (e) Any second or subsequent violation not within the

 

 

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112-month time period after the first violation is punishable as
2provided for a first violation.
3    (f) If a minor is convicted of or placed on supervision for
4a violation of subsection (a-6) or (a-7) of Section 1, the
5court may, in its discretion, and upon recommendation by the
6State's Attorney, order that minor and his or her parents or
7legal guardian to attend a smoker's education or youth
8diversion program if that program is available in the
9jurisdiction where the offender resides. Attendance at a
10smoker's education or youth diversion program shall be
11time-credited against any community service time imposed for
12any first violation of subsection (a-7) of Section 1. In
13addition to any other penalty that the court may impose for a
14violation of subsection (a-7) of Section 1, the court, upon
15request by the State's Attorney, may in its discretion require
16the offender to remit a fee for his or her attendance at a
17smoker's education or youth diversion program.
18    (g) For purposes of this Section, "smoker's education
19program" or "youth diversion program" includes, but is not
20limited to, a seminar designed to educate a person on the
21physical and psychological effects of smoking tobacco products
22and the health consequences of smoking tobacco products that
23can be conducted with a locality's youth diversion program.
24    (h) All moneys collected as fines for violations of
25subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
26distributed in the following manner:

 

 

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1        (1) one-half of each fine shall be distributed to the
2    unit of local government or other entity that successfully
3    prosecuted the offender; and
4        (2) one-half shall be remitted to the State to be used
5    for enforcing this Act.
6    Any violation of subsection (a) or (a-5) of Section 1 or
7Section 1.5 shall be reported to the Department of Revenue
8within 7 business days.
9(Source: P.A. 98-350, eff. 1-1-14; 98-1055, eff. 1-1-16.)
 
10    Section 95. No acceleration or delay. Where this Act makes
11changes in a statute that is represented in this Act by text
12that is not yet or no longer in effect (for example, a Section
13represented by multiple versions), the use of that text does
14not accelerate or delay the taking effect of (i) the changes
15made by this Act or (ii) provisions derived from any other
16Public Act.