Illinois General Assembly - Full Text of HB2513
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Full Text of HB2513  99th General Assembly

HB2513sam001 99TH GENERAL ASSEMBLY

Sen. Julie A. Morrison

Filed: 5/7/2015

 

 


 

 


 
09900HB2513sam001LRB099 05839 HLH 34941 a

1
AMENDMENT TO HOUSE BILL 2513

2    AMENDMENT NO. ______. Amend House Bill 2513 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 licensed retailers that are wholly-owned by
21the distributor or owned by a wholly-owned subsidiary of the
22distributor; (ii) the licensed retailer obtains cigarettes
23only from the distributor requesting the waiver; and (iii) the
24distributor affixes the tax stamps to the original packages of
25cigarettes sold to the licensed retailer. The distributor shall

 

 

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

 

 

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

 

 

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

 

 

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1    Section 10. The Tobacco Products Tax Act of 1995 is amended
2by changing Sections 10-21, 10-25, and 10-35 as follows:
 
3    (35 ILCS 143/10-21)
4    (This Section may contain text from a Public Act with a
5delayed effective date)
6    Sec. 10-21. Retailer's license. Beginning on January 1,
72016, no person may engage in business as a retailer of tobacco
8products in this State without first having obtained a license
9from the Department. Application for license shall be made to
10the Department, by electronic means, in a form prescribed by
11the Department. Each applicant for a license under this Section
12shall furnish to the Department, in an electronic format
13established by the Department, the following information:
14        (1) the name and address of the applicant;
15        (2) the address of the location at which the applicant
16    proposes to engage in business as a retailer of tobacco
17    products in this State;
18        (3) such other additional information as the
19    Department may lawfully require by its rules and
20    regulations.
21    The annual license fee payable to the Department for each
22retailer's license shall be $75. The fee will be deposited into
23the Tax Compliance and Administration Fund and shall be used
24for the cost of tobacco retail inspection and contraband
25tobacco and tobacco smuggling with at least two-thirds of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1minimum-age tobacco laws must include at least the following
2elements: (i) it must explain that only individuals displaying
3valid identification demonstrating that they are 18 years of
4age or older shall be eligible to purchase cigarettes or
5tobacco products and ; (ii) it must explain where a clerk can
6check identification for a date of birth; and (iii) it must
7explain the penalties that a clerk and retailer are subject to
8for violations of the Prevention of Tobacco Use by Minors and
9Sale and Distribution of Tobacco Products Act. The training may
10be conducted electronically. Each retailer that has a training
11program shall require each employee who completes the training
12program to sign a form attesting that the employee has received
13and completed tobacco training. The form shall be kept in the
14employee's file and may be used to provide proof of training.
15    (d) The Department may, by application to any circuit
16court, obtain an injunction restraining any person who engages
17in business as a distributor of tobacco products without a
18license (either because his or her license has been revoked,
19canceled, or suspended or because of a failure to obtain a
20license in the first instance) from engaging in that business
21until that person, as if that person were a new applicant for a
22license, complies 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.
26(Source: P.A. 98-1055, eff. 1-1-16.)
 

 

 

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1    (35 ILCS 143/10-35)
2    (Text of Section before amendment by P.A. 98-1055)
3    Sec. 10-35. Record keeping. Every distributor, as defined
4in Section 10-5, shall keep complete and accurate records of
5tobacco products held, purchased, manufactured, brought in or
6caused to be brought in from without the State, and tobacco
7products sold, or otherwise disposed of, and shall preserve and
8keep all invoices, bills of lading, sales records, and copies
9of bills of sale, the wholesale price for tobacco products sold
10or otherwise disposed of, an inventory of tobacco products
11prepared as of December 31 of each year or as of the last day of
12the distributor's fiscal year if he or she files federal income
13tax returns on the basis of a fiscal year, and other pertinent
14papers and documents relating to the manufacture, purchase,
15sale, or disposition of tobacco products. Books, records,
16papers, and documents that are required by this Act to be kept
17shall, at all times during the usual business hours of the day,
18be subject to inspection by the Department or its duly
19authorized agents and employees. The books, records, papers,
20and documents for any period with respect to which the
21Department is authorized to issue a notice of tax liability
22shall be preserved until the expiration of that period.
23(Source: P.A. 89-21, eff. 6-6-95.)
 
24    (Text of Section after amendment by P.A. 98-1055)

 

 

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1    Sec. 10-35. Record keeping.
2    (a) Every distributor, as defined in Section 10-5, shall
3keep complete and accurate records of tobacco products held,
4purchased, manufactured, brought in or caused to be brought in
5from without the State, and tobacco products sold, or otherwise
6disposed of, and shall preserve and keep all invoices, bills of
7lading, sales records, and copies of bills of sale, the
8wholesale price for tobacco products sold or otherwise disposed
9of, an inventory of tobacco products prepared as of December 31
10of each year or as of the last day of the distributor's fiscal
11year if he or she files federal income tax returns on the basis
12of a fiscal year, and other pertinent papers and documents
13relating to the manufacture, purchase, sale, or disposition of
14tobacco products. Every sales invoice issued by a licensed
15distributor to a retailer in this State shall contain the
16distributor's Tobacco Products License number unless the
17distributor has been granted a waiver by the Department in
18response to a written request in cases where (i) the
19distributor sells little cigars or other tobacco products only
20to licensed retailers that are wholly-owned by the distributor
21or owned by a wholly-owned subsidiary of the distributor; (ii)
22the licensed retailer obtains little cigars or other tobacco
23products only from the distributor requesting the waiver; and
24(iii) the distributor affixes the tax stamps to the original
25packages of little cigars or has or will pay the tax on the
26other tobacco products sold to the licensed retailer. The

 

 

09900HB2513sam001- 26 -LRB099 05839 HLH 34941 a

1distributor shall file a written request with the Department,
2and, if the Department determines that the distributor meets
3the conditions for a waiver, the Department shall grant the
4waiver.
5    (b) Every retailer, as defined in Section 10-5, shall keep
6complete and accurate records of tobacco products held,
7purchased, sold, or otherwise disposed of, and shall preserve
8and keep all invoices, bills of lading, sales records, and
9copies of bills of sale, returns and other pertinent papers and
10documents relating to the purchase, sale, or disposition of
11tobacco products. Such records need not be maintained on the
12licensed premises, but must be maintained in the State of
13Illinois; however, if access is available electronically, the
14records may be maintained out of state. However, all original
15invoices or copies thereof covering purchases of tobacco
16products must be retained on the licensed premises for a period
17of 90 days after such purchase, unless the Department has
18granted a waiver in response to a written request in cases
19where records are kept at a central business location within
20the State of Illinois or in cases where records that are
21available electronically are maintained out of state. The
22Department shall adopt rules regarding the eligibility for a
23waiver, revocation of a waiver, and requirements and standards
24for maintenance and accessibility of records located at a
25central location out-of-State pursuant to a waiver provided
26under this Section.

 

 

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1    (c) Books, records, papers, and documents that are required
2by this Act to be kept shall, at all times during the usual
3business hours of the day, be subject to inspection by the
4Department or its duly authorized agents and employees. The
5books, records, papers, and documents for any period with
6respect to which the Department is authorized to issue a notice
7of tax liability shall be preserved until the expiration of
8that period.
9(Source: P.A. 98-1055, eff. 1-1-16.)
 
10    Section 15. The Prevention of Tobacco Use by Minors and
11Sale and Distribution of Tobacco Products Act is amended by
12changing Section 2 as follows:
 
13    (720 ILCS 675/2)  (from Ch. 23, par. 2358)
14    (Text of Section before amendment by P.A. 98-1055)
15    Sec. 2. Penalties.
16    (a) Any person who violates subsection (a), (a-5), or (a-6)
17of Section 1 or Section 1.5 of this Act is guilty of a petty
18offense and for the first offense shall be fined $200, $400 for
19the second offense in a 12-month period, and $600 for the third
20or any subsequent offense in a 12-month period.
21    (b) If a minor violates subsection (a-7) of Section 1 he or
22she is guilty of a petty offense and the court may impose a
23sentence of 15 hours of community service or a fine of $25 for
24a first violation.

 

 

09900HB2513sam001- 28 -LRB099 05839 HLH 34941 a

1    (c) A second violation by a minor of subsection (a-7) of
2Section 1 that occurs within 12 months after the first
3violation is punishable by a fine of $50 and 25 hours of
4community service.
5    (d) A third or subsequent violation by a minor of
6subsection (a-7) of Section 1 that occurs within 12 months
7after the first violation is punishable by a $100 fine and 30
8hours of community service.
9    (e) Any second or subsequent violation not within the
1012-month time period after the first violation is punishable as
11provided for a first violation.
12    (f) If a minor is convicted of or placed on supervision for
13a violation of subsection (a-7) of Section 1, the court may, in
14its discretion, and upon recommendation by the State's
15Attorney, order that minor and his or her parents or legal
16guardian to attend a smoker's education or youth diversion
17program if that program is available in the jurisdiction where
18the offender resides. Attendance at a smoker's education or
19youth diversion program shall be time-credited against any
20community service time imposed for any first violation of
21subsection (a-7) of Section 1. In addition to any other penalty
22that the court may impose for a violation of subsection (a-7)
23of Section 1, the court, upon request by the State's Attorney,
24may in its discretion require the offender to remit a fee for
25his or her attendance at a smoker's education or youth
26diversion program.

 

 

09900HB2513sam001- 29 -LRB099 05839 HLH 34941 a

1    (g) For purposes of this Section, "smoker's education
2program" or "youth diversion program" includes, but is not
3limited to, a seminar designed to educate a person on the
4physical and psychological effects of smoking tobacco products
5and the health consequences of smoking tobacco products that
6can be conducted with a locality's youth diversion program.
7    (h) All moneys collected as fines for violations of
8subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
9distributed in the following manner:
10        (1) one-half of each fine shall be distributed to the
11    unit of local government or other entity that successfully
12    prosecuted the offender; and
13        (2) one-half shall be remitted to the State to be used
14    for enforcing this Act.
15(Source: P.A. 98-350, eff. 1-1-14.)
 
16    (Text of Section after amendment by P.A. 98-1055)
17    Sec. 2. Penalties.
18    (a) Any person who violates subsection (a) or (a-5) of
19Section 1 or Section 1.5 of this Act is guilty of a petty
20offense. For the first offense in a 24-month period, the person
21shall be fined $200 if his or her employer has a training
22program that facilitates compliance with minimum-age tobacco
23laws. For the second offense in a 24-month period, the person
24shall be fined $400 if his or her employer has a training
25program that facilitates compliance with minimum-age tobacco

 

 

09900HB2513sam001- 30 -LRB099 05839 HLH 34941 a

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

 

 

09900HB2513sam001- 31 -LRB099 05839 HLH 34941 a

1this subsection are in addition to any other penalties
2prescribed under the Cigarette Tax Act and the Tobacco Products
3Tax Act of 1995.
4    (a-6) For the purpose of this Act, a training program that
5facilitates compliance with minimum-age tobacco laws must
6include at least the following elements: (i) it must explain
7that only individuals displaying valid identification
8demonstrating that they are 18 years of age or older shall be
9eligible to purchase cigarettes or tobacco products and ; (ii)
10it must explain where a clerk can check identification for a
11date of birth; and (iii) it must explain the penalties that a
12clerk and retailer are subject to for violations of the
13Prevention of Tobacco Use by Minors and Sale and Distribution
14of Tobacco Products Act. The training may be conducted
15electronically. Each retailer that has a training program shall
16require each employee who completes the training program to
17sign a form attesting that the employee has received and
18completed tobacco training. The form shall be kept in the
19employee's file and may be used to provide proof of training.
20    (b) If a minor violates subsection (a-7) of Section 1 he or
21she is guilty of a petty offense and the court may impose a
22sentence of 25 hours of community service and a fine of $50 for
23a first violation. If a minor violates subsection (a-6) of
24Section 1, he or she is guilty of a Class A misdemeanor.
25    (c) A second violation by a minor of subsection (a-7) of
26Section 1 that occurs within 12 months after the first

 

 

09900HB2513sam001- 32 -LRB099 05839 HLH 34941 a

1violation is punishable by a fine of $75 and 50 hours of
2community service.
3    (d) A third or subsequent violation by a minor of
4subsection (a-7) of Section 1 that occurs within 12 months
5after the first violation is punishable by a $200 fine and 50
6hours of community service.
7    (e) Any second or subsequent violation not within the
812-month time period after the first violation is punishable as
9provided for a first violation.
10    (f) If a minor is convicted of or placed on supervision for
11a violation of subsection (a-6) or (a-7) of Section 1, the
12court may, in its discretion, and upon recommendation by the
13State's Attorney, order that minor and his or her parents or
14legal guardian to attend a smoker's education or youth
15diversion program if that program is available in the
16jurisdiction where the offender resides. Attendance at a
17smoker's education or youth diversion program shall be
18time-credited against any community service time imposed for
19any first violation of subsection (a-7) of Section 1. In
20addition to any other penalty that the court may impose for a
21violation of subsection (a-7) of Section 1, the court, upon
22request by the State's Attorney, may in its discretion require
23the offender to remit a fee for his or her attendance at a
24smoker's education or youth diversion program.
25    (g) For purposes of this Section, "smoker's education
26program" or "youth diversion program" includes, but is not

 

 

09900HB2513sam001- 33 -LRB099 05839 HLH 34941 a

1limited to, a seminar designed to educate a person on the
2physical and psychological effects of smoking tobacco products
3and the health consequences of smoking tobacco products that
4can be conducted with a locality's youth diversion program.
5    (h) All moneys collected as fines for violations of
6subsection (a), (a-5), (a-6), or (a-7) of Section 1 shall be
7distributed in the following manner:
8        (1) one-half of each fine shall be distributed to the
9    unit of local government or other entity that successfully
10    prosecuted the offender; and
11        (2) one-half shall be remitted to the State to be used
12    for enforcing this Act.
13    Any violation of subsection (a) or (a-5) of Section 1 or
14Section 1.5 shall be reported to the Department of Revenue
15within 7 business days.
16(Source: P.A. 98-350, eff. 1-1-14; 98-1055, eff. 1-1-16.)
 
17    Section 95. No acceleration or delay. Where this Act makes
18changes in a statute that is represented in this Act by text
19that is not yet or no longer in effect (for example, a Section
20represented by multiple versions), the use of that text does
21not accelerate or delay the taking effect of (i) the changes
22made by this Act or (ii) provisions derived from any other
23Public Act.".