Sen. Julie A. Morrison

Filed: 4/22/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1919

2    AMENDMENT NO. ______. Amend Senate Bill 1919 by replacing
3everything after the enacting clause with the following:
 
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:

 

 

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1        (1) the name and address of the applicant;
2        (2) the address of the location at which the applicant
3    proposes to engage in business as a retailer of cigarettes
4    in this State; and
5        (3) such other additional information as the
6    Department may lawfully require by its rules and
7    regulations.
8    The annual license fee payable to the Department for each
9retailer's license shall be $75. The fee shall be deposited
10into the Tax Compliance and Administration Fund and shall be
11for the cost of tobacco retail inspection and contraband
12tobacco and tobacco smuggling with at least two-thirds of the
13money being used for contraband tobacco and tobacco smuggling
14operations and enforcement.
15    Each applicant for a license shall pay the fee to the
16Department at the time of submitting its application for a
17license to the Department. The Department shall require an
18applicant for a license under this Section to electronically
19file and pay the fee.
20    A separate annual license fee shall be paid for each place
21of business at which a person who is required to procure a
22retailer's license under this Section proposes to engage in
23business as a retailer in Illinois under this Act.
24    The following are ineligible to receive a retailer's
25license under this Act:
26        (1) a person who has been convicted of a felony related

 

 

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1    to the illegal transportation, sale, or distribution of
2    cigarettes, or a tobacco-related felony, under any federal
3    or State law, if the Department, after investigation and a
4    hearing if requested by the applicant, determines that the
5    person has not been sufficiently rehabilitated to warrant
6    the public trust; or
7        (2) a corporation, if any officer, manager, or director
8    thereof, or any stockholder or stockholders owning in the
9    aggregate more than 5% of the stock of such corporation,
10    would not be eligible to receive a license under this Act
11    for any reason.
12    The Department, upon receipt of an application and license
13fee, in proper form, from a person who is eligible to receive a
14retailer's license under this Act, shall issue to such
15applicant a license in form as prescribed by the Department.
16That license shall permit the applicant to whom it is issued to
17engage in business as a retailer under this Act at the place
18shown in his or her application. All licenses issued by the
19Department under this Section shall be valid for a period not
20to exceed one year after issuance unless sooner revoked,
21canceled, or suspended as provided in this Act. No license
22issued under this Section is transferable or assignable. The
23license shall be conspicuously displayed in the place of
24business conducted by the licensee in Illinois under such
25license. The Department shall not issue a retailer's license to
26a retailer unless the retailer is also registered under the

 

 

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1Retailers' Occupation Tax Act. A person who obtains a license
2as a retailer who ceases to do business as specified in the
3license, or who never commenced business, or who obtains a
4distributor's license, or whose license is suspended or
5revoked, shall immediately surrender the license to the
6Department.
7    Any person aggrieved by any decision of the Department
8under this Section subsection may, within 30 days after notice
9of the decision, protest and request a hearing. Upon receiving
10a request for a hearing, the Department shall give written
11notice to the person requesting the hearing of the time and
12place fixed for the hearing and shall hold a hearing in
13conformity with the provisions of this Act and then issue its
14final administrative decision in the matter to that person. In
15the absence of a protest and request for a hearing within 30
16days, the Department's decision shall become final without any
17further determination being made or notice given.
18(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 
19    (35 ILCS 130/6)  (from Ch. 120, par. 453.6)
20    (Text of Section before amendment by P.A. 98-1055)
21    Sec. 6. Revocation, cancellation, or suspension of
22license. The Department may, after notice and hearing as
23provided for by this Act, revoke, cancel or suspend the license
24of any distributor or secondary distributor for the violation
25of any provision of this Act, or for noncompliance with any

 

 

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

 

 

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

 

 

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1distributor or secondary distributor of cigarettes in this
2State.
3(Source: P.A. 96-1027, eff. 7-12-10.)
 
4    (Text of Section after amendment by P.A. 98-1055)
5    Sec. 6. Revocation, cancellation, or suspension of
6license. The Department may, after notice and hearing as
7provided for by this Act, revoke, cancel or suspend the license
8of any distributor, secondary distributor, or retailer for the
9violation of any provision of this Act, or for noncompliance
10with any provision herein contained, or for any noncompliance
11with any lawful rule or regulation promulgated by the
12Department under Section 8 of this Act, or because the licensee
13is determined to be ineligible for a distributor's license for
14any one or more of the reasons provided for in Section 4 of
15this Act, or because the licensee is determined to be
16ineligible for a secondary distributor's license for any one or
17more of the reasons provided for in Section 4c of this Act, or
18because the licensee is determined to be ineligible for a
19retailer's license for any one or more of the reasons provided
20for in Section 4g of this Act. However, no such license shall
21be revoked, cancelled or suspended, except after a hearing by
22the Department with notice to the distributor, secondary
23distributor, or retailer, as aforesaid, and affording such
24distributor, secondary distributor, or retailer a reasonable
25opportunity to appear and defend, and any distributor,

 

 

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1secondary distributor, or retailer aggrieved by any decision of
2the Department with respect thereto may have the determination
3of the Department judicially reviewed, as herein provided.
4    The Department may revoke, cancel, or suspend the license
5of any distributor for a violation of the Tobacco Product
6Manufacturers' Escrow Enforcement Act as provided in Section 30
7of that Act. The Department may revoke, cancel, or suspend the
8license of any secondary distributor for a violation of
9subsection (e) of Section 15 of the Tobacco Product
10Manufacturers' Escrow Enforcement Act.
11    If the retailer has a training program that facilitates
12compliance with minimum-age tobacco laws, the Department shall
13suspend for 3 days the license of that retailer for a fourth or
14subsequent violation of the Prevention of Tobacco Use by Minors
15and Sale and Distribution of Tobacco Products Act, as provided
16in subsection (a) of Section 2 of that Act. For the purposes of
17this Section, any violation of subsection (a) of Section 2 of
18the Prevention of Tobacco Use by Minors and Sale and
19Distribution of Tobacco Products Act occurring at the
20retailer's licensed location during a 24-month period shall be
21counted as a violation against the retailer.
22    If the retailer does not have a training program that
23facilitates compliance with minimum-age tobacco laws, the
24Department shall suspend for 3 days the license of that
25retailer for a second violation of the Prevention of Tobacco
26Use by Minors and Sale and Distribution of Tobacco Products

 

 

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

 

 

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1program to sign a form attesting that the employee has received
2and completed tobacco training. The form shall be kept in the
3employee's file and may be used to provide proof of training.
4    Any distributor, secondary distributor, or retailer
5aggrieved by any decision of the Department under this Section
6may, within 20 days after notice of the decision, protest and
7request a hearing. Upon receiving a request for a hearing, the
8Department shall give notice in writing to the distributor,
9secondary distributor, or retailer requesting the hearing that
10contains a statement of the charges preferred against the
11distributor, secondary distributor, or retailer and that
12states the time and place fixed for the hearing. The Department
13shall hold the hearing in conformity with the provisions of
14this Act and then issue its final administrative decision in
15the matter to the distributor, secondary distributor, or
16retailer. In the absence of a protest and request for a hearing
17within 20 days, the Department's decision shall become final
18without any further determination being made or notice given.
19    No license so revoked, as aforesaid, shall be reissued to
20any such distributor, secondary distributor, or retailer
21within a period of 6 months after the date of the final
22determination of such revocation. No such license shall be
23reissued at all so long as the person who would receive the
24license is ineligible to receive a distributor's license under
25this Act for any one or more of the reasons provided for in
26Section 4 of this Act, is ineligible to receive a secondary

 

 

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1distributor's license under this Act for any one or more of the
2reasons provided for in Section 4c of this Act, or is
3determined to be ineligible for a retailer's license under the
4Act for any one or more of the reasons provided for in Section
54g of this Act.
6    The Department upon complaint filed in the circuit court
7may by injunction restrain any person who fails, or refuses, to
8comply with any of the provisions of this Act from acting as a
9distributor, secondary distributor, or retailer of cigarettes
10in this State.
11(Source: P.A. 98-1055, eff. 1-1-16.)
 
12    (35 ILCS 130/11)  (from Ch. 120, par. 453.11)
13    (Text of Section before amendment by P.A. 98-1055)
14    Sec. 11. Every distributor of cigarettes, who is required
15to procure a license under this Act, shall keep within
16Illinois, at his licensed address, complete and accurate
17records of cigarettes held, purchased, manufactured, brought
18in or caused to be brought in from without the State, and sold,
19or otherwise disposed of, and shall preserve and keep within
20Illinois at his licensed address all invoices, bills of lading,
21sales records, copies of bills of sale, inventory at the close
22of each period for which a return is required of all cigarettes
23on hand and of all cigarette revenue stamps, both affixed and
24unaffixed, and other pertinent papers and documents relating to
25the manufacture, purchase, sale or disposition of cigarettes.

 

 

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1All books and records and other papers and documents that are
2required by this Act to be kept shall be kept in the English
3language, and shall, at all times during the usual business
4hours of the day, be subject to inspection by the Department or
5its duly authorized agents and employees. The Department may
6adopt rules that establish requirements, including record
7forms and formats, for records required to be kept and
8maintained by taxpayers. For purposes of this Section,
9"records" means all data maintained by the taxpayer, including
10data on paper, microfilm, microfiche or any type of
11machine-sensible data compilation. Those books, records,
12papers and documents shall be preserved for a period of at
13least 3 years after the date of the documents, or the date of
14the entries appearing in the records, unless the Department, in
15writing, authorizes their destruction or disposal at an earlier
16date. At all times during the usual business hours of the day
17any duly authorized agent or employee of the Department may
18enter any place of business of the distributor, without a
19search warrant, and inspect the premises and the stock or
20packages of cigarettes and the vending devices therein
21contained, to determine whether any of the provisions of this
22Act are being violated. If such agent or employee is denied
23free access or is hindered or interfered with in making such
24examination as herein provided, the license of the distributor
25at such premises shall be subject to revocation by the
26Department.

 

 

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1(Source: P.A. 88-480.)
 
2    (Text of Section after amendment by P.A. 98-1055)
3    Sec. 11. Every distributor of cigarettes, who is required
4to procure a license under this Act, shall keep within
5Illinois, at his licensed address, complete and accurate
6records of cigarettes held, purchased, manufactured, brought
7in or caused to be brought in from without the State, and sold,
8or otherwise disposed of, and shall preserve and keep within
9Illinois at his licensed address all invoices, bills of lading,
10sales records, copies of bills of sale, inventory at the close
11of each period for which a return is required of all cigarettes
12on hand and of all cigarette revenue stamps, both affixed and
13unaffixed, and other pertinent papers and documents relating to
14the manufacture, purchase, sale or disposition of cigarettes.
15Every sales invoice issued by a licensed distributor to a
16retailer in this State shall contain the distributor's
17cigarette distributor license number unless the distributor
18has been granted a waiver by the Department in response to a
19written request in cases where (i) the distributor sells
20cigarettes only to retailers that are wholly-owned by the
21distributor or owned by a wholly-owned subsidiary of the
22distributor; (ii) the retailer obtains cigarettes only from the
23distributor requesting the waiver; and (iii) the distributor
24affixes the tax stamps to the original packages of cigarettes
25sold to the retailer. The distributor shall file a written

 

 

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1request with the Department, and, if the Department determines
2that the distributor meets the conditions for a waiver, the
3Department shall grant the waiver. All books and records and
4other papers and documents that are required by this Act to be
5kept shall be kept in the English language, and shall, at all
6times during the usual business hours of the day, be subject to
7inspection by the Department or its duly authorized agents and
8employees. The Department may adopt rules that establish
9requirements, including record forms and formats, for records
10required to be kept and maintained by taxpayers. For purposes
11of this Section, "records" means all data maintained by the
12taxpayer, including data on paper, microfilm, microfiche or any
13type of machine-sensible data compilation. Those books,
14records, papers and documents shall be preserved for a period
15of at least 3 years after the date of the documents, or the
16date of the entries appearing in the records, unless the
17Department, in writing, authorizes their destruction or
18disposal at an earlier date. At all times during the usual
19business hours of the day any duly authorized agent or employee
20of the Department may enter any place of business of the
21distributor, without a search warrant, and inspect the premises
22and the stock or packages of cigarettes and the vending devices
23therein contained, to determine whether any of the provisions
24of this Act are being violated. If such agent or employee is
25denied free access or is hindered or interfered with in making
26such examination as herein provided, the license of the

 

 

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1distributor at such premises shall be subject to revocation by
2the Department.
3(Source: P.A. 98-1055, eff. 1-1-16.)
 
4    (35 ILCS 130/11c)
5    (This Section may contain text from a Public Act with a
6delayed effective date)
7    Sec. 11c. Retailers; records. Every retailer who is
8required to procure a license under this Act shall keep within
9Illinois complete and accurate records of cigarettes
10purchased, sold, or otherwise disposed of. It shall be the duty
11of every retail licensee to make sales records, copies of bills
12of sale, and inventory at the close of each period for which a
13report is required of all cigarettes on hand available upon
14reasonable notice for the purpose of investigation and control
15by the Department. Such records need not be maintained on the
16licensed premises, but must be maintained in the State of
17Illinois; however, if access is available electronically, the
18records may be maintained out of state. However, all original
19invoices or copies thereof covering purchases of cigarettes
20must be retained on the licensed premises for a period of 90
21days after such purchase, unless the Department has granted a
22waiver in response to a written request in cases where records
23are kept at a central business location within the State of
24Illinois or in cases where records that are available
25electronically are maintained out of state. The Department may

 

 

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

 

 

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1    (35 ILCS 143/10-21)
2    (This Section may contain text from a Public Act with a
3delayed effective date)
4    Sec. 10-21. Retailer's license. Beginning on January 1,
52016, no person may engage in business as a retailer of tobacco
6products in this State without first having obtained a license
7from the Department. Application for license shall be made to
8the Department, by electronic means, in a form prescribed by
9the Department. Each applicant for a license under this Section
10shall furnish to the Department, in an electronic format
11established by the Department, the following information:
12        (1) the name and address of the applicant;
13        (2) the address of the location at which the applicant
14    proposes to engage in business as a retailer of tobacco
15    products in this State;
16        (3) such other additional information as the
17    Department may lawfully require by its rules and
18    regulations.
19    The annual license fee payable to the Department for each
20retailer's license shall be $75. The fee will be deposited into
21the Tax Compliance and Administration Fund and shall be used
22for the cost of tobacco retail inspection and contraband
23tobacco and tobacco smuggling with at least two-thirds of the
24money being used for contraband tobacco and tobacco smuggling
25operations and enforcement.
26    Each applicant for license shall pay such fee to the

 

 

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

 

 

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1which license shall permit the applicant to which it is issued
2to engage in business as a retailer under this Act at the place
3shown in his application. All licenses issued by the Department
4under this Section shall be valid for a period not to exceed
5one year after issuance unless sooner revoked, canceled or
6suspended as provided in this Act. No license issued under this
7Section is transferable or assignable. Such license shall be
8conspicuously displayed in the place of business conducted by
9the licensee in Illinois under such license. A person who
10obtains a license as a retailer who ceases to do business as
11specified in the license, or who never commenced business, or
12who obtains a distributor's license, or whose license is
13suspended or revoked, shall immediately surrender the license
14to the Department. The Department shall not issue a license to
15a retailer unless the retailer is also validly registered under
16the Retailers Occupation Tax Act.
17    A retailer as defined under this Act need not obtain an
18additional license under this Act, but shall be deemed to be
19sufficiently licensed by virtue of his being properly licensed
20as a retailer under Section 4g of the Cigarette Tax Act.
21    Any person aggrieved by any decision of the Department
22under this Section subsection may, within 30 days after notice
23of the decision, protest and request a hearing. Upon receiving
24a request for a hearing, the Department shall give notice to
25the person requesting the hearing of the time and place fixed
26for the hearing and shall hold a hearing in conformity with the

 

 

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1provisions of this Act and then issue its final administrative
2decision in the matter to that person. In the absence of a
3protest and request for a hearing within 30 days, the
4Department's decision shall become final without any further
5determination being made or notice given.
6(Source: P.A. 98-1055, eff. 1-1-16; revised 12-1-14.)
 
7    (35 ILCS 143/10-25)
8    (Text of Section before amendment by P.A. 98-1055)
9    Sec. 10-25. License actions. The Department may, after
10notice and a hearing, revoke, cancel, or suspend the license of
11any distributor who violates any of the provisions of this Act.
12The notice shall specify the alleged violation or violations
13upon which the revocation, cancellation, or suspension
14proceeding is based.
15    The Department may revoke, cancel, or suspend the license
16of any distributor for a violation of the Tobacco Product
17Manufacturers' Escrow Enforcement Act as provided in Section 20
18of that Act.
19    The Department may, by application to any circuit court,
20obtain an injunction restraining any person who engages in
21business as a distributor of tobacco products without a license
22(either because his or her license has been revoked, canceled,
23or suspended or because of a failure to obtain a license in the
24first instance) from engaging in that business until that
25person, as if that person were a new applicant for a license,

 

 

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1complies with all of the conditions, restrictions, and
2requirements of Section 10-20 of this Act and qualifies for and
3obtains a license. Refusal or neglect to obey the order of the
4court may result in punishment for contempt.
5(Source: P.A. 92-737, eff. 7-25-02.)
 
6    (Text of Section after amendment by P.A. 98-1055)
7    Sec. 10-25. License actions.
8    (a) The Department may, after notice and a hearing, revoke,
9cancel, or suspend the license of any distributor or retailer
10who violates any of the provisions of this Act. The notice
11shall specify the alleged violation or violations upon which
12the revocation, cancellation, or suspension proceeding is
13based.
14    (b) The Department may revoke, cancel, or suspend the
15license of any distributor for a violation of the Tobacco
16Product Manufacturers' Escrow Enforcement Act as provided in
17Section 20 of that Act.
18    (c) If the retailer has a training program that facilitates
19compliance with minimum-age tobacco laws, the Department shall
20suspend for 3 days the license of that retailer for a fourth or
21subsequent violation of the Prevention of Tobacco Use by Minors
22and Sale and Distribution of Tobacco Products Act, as provided
23in subsection (a) of Section 2 of that Act. For the purposes of
24this Section, any violation of subsection (a) of Section 2 of
25the Prevention of Tobacco Use by Minors and Sale and

 

 

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1Distribution of Tobacco Products Act occurring at the
2retailer's licensed location, during a 24-month period, shall
3be counted as a violation against the retailer.
4    If the retailer does not have a training program that
5facilitates compliance with minimum-age tobacco laws, the
6Department shall suspend for 3 days the license of that
7retailer for a second violation of the Prevention of Tobacco
8Use by Minors and Sale and Distribution of Tobacco Products
9Act, as provided in subsection (a-5) of Section 2 of that Act.
10    If the retailer does not have a training program that
11facilitates compliance with minimum-age tobacco laws, the
12Department shall suspend for 7 days the license of that
13retailer for a third violation of the Prevention of Tobacco Use
14by Minors and Sale and Distribution of Tobacco Products Act, as
15provided in subsection (a-5) of Section 2 of that Act.
16    If the retailer does not have a training program that
17facilitates compliance with minimum-age tobacco laws, the
18Department shall suspend for 30 days the license of a retailer
19for a fourth or subsequent violation of the Prevention of
20Tobacco Use by Minors and Sale and Distribution of Tobacco
21Products Act, as provided in subsection (a-5) of Section 2 of
22that Act.
23    A training program that facilitates compliance with
24minimum-age tobacco laws must include at least the following
25elements: (i) it must explain that only individuals displaying
26valid identification demonstrating that they are 18 years of

 

 

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

 

 

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

 

 

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1purchased, manufactured, brought in or caused to be brought in
2from without the State, and tobacco products sold, or otherwise
3disposed of, and shall preserve and keep all invoices, bills of
4lading, sales records, and copies of bills of sale, the
5wholesale price for tobacco products sold or otherwise disposed
6of, an inventory of tobacco products prepared as of December 31
7of each year or as of the last day of the distributor's fiscal
8year if he or she files federal income tax returns on the basis
9of a fiscal year, and other pertinent papers and documents
10relating to the manufacture, purchase, sale, or disposition of
11tobacco products. Every sales invoice issued by a licensed
12distributor to a retailer in this State shall contain the
13distributor's Tobacco Products License number unless the
14distributor has been granted a waiver by the Department in
15response to a written request in cases where (i) the
16distributor sells cigarettes only to retailers that are
17wholly-owned by the distributor or owned by a wholly-owned
18subsidiary of the distributor; (ii) the retailer obtains
19cigarettes only from the distributor requesting the waiver; and
20(iii) the distributor affixes the tax stamps to the original
21packages of cigarettes sold to the retailer. The distributor
22shall file a written request with the Department, and, if the
23Department determines that the distributor meets the
24conditions for a waiver, the Department shall grant the waiver.
25    (b) Every retailer, as defined in Section 10-5, shall keep
26complete and accurate records of tobacco products held,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1eligible to purchase cigarettes or tobacco products and ; (ii)
2it must explain where a clerk can check identification for a
3date of birth; and (iii) it must explain the penalties that a
4clerk and retailer are subject to for violations of the
5Prevention of Tobacco Use by Minors and Sale and Distribution
6of Tobacco Products Act. The training may be conducted
7electronically. Each retailer that has a training program shall
8require each employee who completes the training program to
9sign a form attesting that the employee has received and
10completed tobacco training. The form shall be kept in the
11employee's file and may be used to provide proof of training.
12    (b) If a minor violates subsection (a-7) of Section 1 he or
13she is guilty of a petty offense and the court may impose a
14sentence of 25 hours of community service and a fine of $50 for
15a first violation. If a minor violates subsection (a-6) of
16Section 1, he or she is guilty of a Class A misdemeanor.
17    (c) A second violation by a minor of subsection (a-7) of
18Section 1 that occurs within 12 months after the first
19violation is punishable by a fine of $75 and 50 hours of
20community service.
21    (d) A third or subsequent violation by a minor of
22subsection (a-7) of Section 1 that occurs within 12 months
23after the first violation is punishable by a $200 fine and 50
24hours of community service.
25    (e) Any second or subsequent violation not within the
2612-month time period after the first violation is punishable as

 

 

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

 

 

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