Full Text of SB3083 93rd General Assembly
SB3083enr 93RD GENERAL ASSEMBLY
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| AN ACT concerning finance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Tobacco Products Manufacturers' Escrow | 5 |
| Enforcement Act of 2003 is amended by changing Sections 15 and | 6 |
| 30 as follows:
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| (30 ILCS 167/15)
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| Sec. 15. Certifications; directory; tax stamps.
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| (a) Every tobacco product manufacturer whose cigarettes | 10 |
| are sold in this
State whether
directly or through a | 11 |
| distributor, retailer, or similar intermediary or
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| intermediaries shall execute and
deliver on a form prescribed | 13 |
| by the Attorney General a certification to the
Attorney | 14 |
| General, no
later than the thirtieth day of April each year, | 15 |
| certifying under penalty of
perjury that, as of the date
of the | 16 |
| certification, the tobacco product manufacturer either: (i) is | 17 |
| a
participating manufacturer and has generally performed its | 18 |
| financial
obligations under the Master Settlement Agreement; | 19 |
| or
(ii) is in full compliance with the Escrow Act, including | 20 |
| all quarterly
installment
payments.
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| (1) A participating manufacturer shall include in its | 22 |
| certification a list
of its brand
families. The | 23 |
| participating manufacturer shall update the list 30 days | 24 |
| prior to
any addition to or
modification of its brand | 25 |
| families by executing and delivering a supplemental
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| certification to the
Attorney General.
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| (2) A non-participating manufacturer shall include in | 28 |
| its certification a
complete
list of all of its brand | 29 |
| families: (i) separately listing brand families of
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| cigarettes and the number of
units sold for each brand | 31 |
| family that were sold in the State during the
preceding | 32 |
| calendar year; (ii)
listing all of its brand families that |
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| have been sold in the State at any time
during the current
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| calendar year; (iii) indicating by an asterisk, any brand | 3 |
| family sold in the
State during the preceding
calendar year | 4 |
| that is no longer being sold in the State as of the date of | 5 |
| the
certification; and (iv)
identifying by name and address | 6 |
| any other manufacturer of the brand families in
the | 7 |
| preceding
calendar year. The non-participating | 8 |
| manufacturer shall update the list 30 days
prior to any | 9 |
| addition
to or modification of its brand families by | 10 |
| executing and delivering a
supplemental certification to
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| the Attorney General.
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| (3) In the case of a non-participating manufacturer, | 13 |
| the certification
shall further certify:
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| (A) that the non-participating manufacturer is | 15 |
| registered to do business
in
this State or has | 16 |
| appointed a resident agent for service of process and
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| provided notice thereof as
required by item 4 of | 18 |
| subsection (a) of this Section;
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| (B) that the non-participating manufacturer has | 20 |
| (i) established and
continues to maintain a qualified | 21 |
| escrow fund as that term is defined in
Section 10 of | 22 |
| the Escrow
Act, and (ii) executed a qualified escrow | 23 |
| agreement that has been reviewed and
approved by the
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| Attorney General and that governs the qualified escrow | 25 |
| fund;
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| (C) that the non-participating manufacturer is in | 27 |
| full compliance with
the Escrow Act and this Act, and | 28 |
| any regulations promulgated pursuant thereto;
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| (D) the name, address and telephone number of the | 30 |
| financial institution
where the non-participating | 31 |
| manufacturer has established the qualified escrow
fund | 32 |
| required
pursuant to Section 15 of the Escrow Act and | 33 |
| all regulations promulgated
thereto;
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| (E) the account number of the qualified escrow fund | 35 |
| and sub-account
number for this State;
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| (F) the amount the non-participating manufacturer |
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| placed in the fund
for cigarettes sold in the State | 2 |
| during the preceding calendar year, including
the | 3 |
| dates and amount
of each deposit, and such evidence or | 4 |
| verification as may be deemed necessary
by the Attorney | 5 |
| General to confirm the foregoing; and
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| (G) the amounts of and dates of any withdrawal or | 7 |
| transfer of funds the
non-participating manufacturer | 8 |
| made at any time from the fund or from any other
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| qualified escrow
fund into which it ever made escrow | 10 |
| payments pursuant to Section 15 of the
Escrow Act and | 11 |
| all regulations promulgated thereto.
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| (4) A tobacco product manufacturer may not include a | 13 |
| brand family in its
certification unless: (i) in the case | 14 |
| of a participating manufacturer, the
participating | 15 |
| manufacturer
affirms that the brand family is to be deemed | 16 |
| to be its cigarettes for purposes
of calculating its
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| payments under the master settlement agreement for the | 18 |
| relevant year, in the
volume and shares
determined pursuant | 19 |
| to the master settlement agreement; and (ii) in the case of
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| a non-participating
manufacturer, the non-participating | 21 |
| manufacturer affirms that the brand family
is to be deemed | 22 |
| to
be its cigarettes for purposes of Section 15 of the | 23 |
| Escrow Act.
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| Nothing in this Section shall be construed as limiting | 25 |
| or otherwise
affecting
the State's right
to maintain that a | 26 |
| brand family constitutes cigarettes of a different tobacco
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| product manufacturer
for purposes of calculating payments | 28 |
| under the master settlement agreement or
for purposes of | 29 |
| Section 15 of the Escrow Act.
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| (5) The tobacco product manufacturers shall maintain | 31 |
| all invoices and
documentation of sales and other | 32 |
| information relied upon for certification for
a period of 5 | 33 |
| years,
unless otherwise required by law to maintain them | 34 |
| for a greater period of time.
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| (b) Not later than 6 months after the effective date of | 36 |
| this Act, the
Attorney General shall
develop and make available |
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| for public inspection, through publishing on its
website, a | 2 |
| directory
listing all tobacco product manufacturers that have | 3 |
| provided current and
accurate certifications
conforming to the | 4 |
| requirements of subsection (a) of Section 15 and all brand
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| families that are listed in the certifications, except for the | 6 |
| following:
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| (1) The Attorney General shall not include or retain in | 8 |
| the directory the
name or
brand families of any | 9 |
| non-participating manufacturer that fails to provide the
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| required certification
or whose certification the Attorney | 11 |
| General determines is not in compliance
with subsections | 12 |
| (a)(2)
or (a)(3) of Section 15, unless the Attorney General | 13 |
| has determined that the
violation has been
cured to the | 14 |
| satisfaction of the Attorney General.
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| (2) Neither a tobacco product manufacturer nor brand | 16 |
| family shall be
included or
retained in the directory if | 17 |
| the Attorney General concludes that: (i) in the
case of a | 18 |
| non-participating
manufacturer all escrow payments | 19 |
| required pursuant to Section 15 of the Escrow
Act for any | 20 |
| period
for any brand family, whether or not listed by the | 21 |
| non-participating
manufacturer, have not been
fully paid | 22 |
| into a qualified escrow fund governed by a qualified escrow
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| agreement that has been
approved by the Attorney General; | 24 |
| or (ii) all outstanding final judgments,
including | 25 |
| interest
thereon, for violations of Section 15 of the | 26 |
| Escrow Act have not been fully
satisfied for that brand | 27 |
| family and manufacturer.
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| (c) The Attorney General shall update the directory as | 29 |
| necessary in order
to correct
mistakes and to add or remove a | 30 |
| tobacco product manufacturer or brand families
to keep the | 31 |
| directory in conformity with the requirements of this Act.
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| (d) Every distributor shall provide and update as necessary | 33 |
| an electronic
mail
address to the Attorney General for the | 34 |
| purpose of receiving any notifications
as may be required by | 35 |
| this Act.
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| (e) It shall be unlawful for any person: (i) to affix a |
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| stamp to a package
or other container of
cigarettes of a | 2 |
| tobacco product manufacturer or brand family not included in
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| the directory ; or (ii) to
sell, offer for sale , or possess for | 4 |
| sale in this State , ; or (ii) import for personal
consumption in | 5 |
| this State,
cigarettes of a tobacco product manufacturer or | 6 |
| brand family not included in
the directory.
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| (Source: P.A. 93-446, eff. 1-1-04.)
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| (30 ILCS 167/30)
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| Sec. 30. Penalties and other remedies.
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| (a) In addition to or in lieu of any other civil or | 11 |
| criminal remedy provided
by law, upon a
determination that a | 12 |
| distributor has violated subsection (e)
(c) of Section 15 or
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| any regulation adopted
pursuant thereto, the Director may | 14 |
| revoke or suspend the license of any
stamping agent in the
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| manner provided by Section 6 of the Cigarette Tax Act, Section | 16 |
| 6 of the
Cigarette Use Tax Act, or
Section 10-25 of the Tobacco | 17 |
| Products Tax Act of 1995, as appropriate. Each
stamp affixed | 18 |
| and
each offer to sell cigarettes in violation of subsection | 19 |
| (e)
(c) of Section 15
shall constitute a separate
violation. | 20 |
| For each violation, the Director may also impose a civil
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| penalty in an amount not
to exceed the greater of 500% of the | 22 |
| retail value of the cigarettes sold or
$5,000 upon a
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| determination of violation of subsection (e)
(c) of Section 15 | 24 |
| or any regulations
adopted pursuant thereto.
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| (b) Any cigarettes that have been sold, offered for sale, | 26 |
| or possessed for
sale in this State,
or imported for personal | 27 |
| consumption in this State in violation of subsection (e)
(c) of | 28 |
| Section 15 shall
be subject to seizure and forfeiture as | 29 |
| provided in Sections 18, 18a, and 20 of
the Cigarette Tax Act
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| and Sections 24, 25, 25a and 26 of the Cigarette Use Tax Act, | 31 |
| and all
cigarettes so seized and forfeited shall be destroyed | 32 |
| and not resold.
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| (c) The Attorney General may seek an injunction to restrain | 34 |
| a threatened or
actual violation
of subsection (e)
(c) of | 35 |
| Section 15, subsection (a) of Section 25, or subsection
(d) of |
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| Section 25 by a
stamping agent and to compel the stamping agent | 2 |
| to comply with such
subsections. In any action
brought pursuant | 3 |
| to this Section, the State shall be entitled to recover the
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| costs of investigation,
costs of the action, and reasonable | 5 |
| attorney fees.
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| (d) It shall be unlawful for a person to: (i) sell or | 7 |
| distribute cigarettes;
or (ii) acquire, hold,
own, possess, | 8 |
| transport, import, or cause to be imported cigarettes that the
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| person knows or should
know are intended for distribution or | 10 |
| sale in the State in violation of
subsection (e)
(c) of Section | 11 |
| 15. A
violation of this Section shall be a Class 2 felony.
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| (e) A person who violates subsection (e)
(c) of Section 15 | 13 |
| engages in an unfair
and deceptive
trade practice in violation | 14 |
| of the Uniform Deceptive Trade Practices Act.
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| (Source: P.A. 93-446, eff. 1-1-04.)
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