Full Text of SB1706 102nd General Assembly
SB1706ham001 102ND GENERAL ASSEMBLY | Rep. Kelly M. Cassidy Filed: 5/7/2021
| | 10200SB1706ham001 | | LRB102 16571 HLH 26201 a |
|
| 1 | | AMENDMENT TO SENATE BILL 1706
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1706 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Tobacco Products Tax Act of 1995 is | 5 | | amended by changing Section 10-5 as follows:
| 6 | | (35 ILCS 143/10-5)
| 7 | | Sec. 10-5. Definitions. For purposes of this Act:
| 8 | | "Business" means any trade, occupation, activity, or | 9 | | enterprise engaged
in, at any location whatsoever, for the | 10 | | purpose of selling tobacco products.
| 11 | | "Cigarette" has the meaning ascribed to the term in | 12 | | Section 1 of the
Cigarette Tax Act.
| 13 | | "Contraband little cigar" means: | 14 | | (1) packages of little cigars containing 20 or 25 | 15 | | little cigars that do not bear a required tax stamp under | 16 | | this Act; |
| | | 10200SB1706ham001 | - 2 - | LRB102 16571 HLH 26201 a |
|
| 1 | | (2) packages of little cigars containing 20 or 25 | 2 | | little cigars that bear a fraudulent, imitation, or | 3 | | counterfeit tax stamp; | 4 | | (3) packages of little cigars containing 20 or 25 | 5 | | little cigars that are improperly tax stamped, including | 6 | | packages of little cigars that bear only a tax stamp of | 7 | | another state or taxing jurisdiction; or | 8 | | (4) packages of little cigars containing other than 20 | 9 | | or 25 little cigars in the possession of a distributor, | 10 | | retailer or wholesaler, unless the distributor, retailer, | 11 | | or wholesaler possesses, or produces within the time frame | 12 | | provided in Section 10-27 or 10-28 of this Act, an invoice | 13 | | from a stamping distributor, distributor, or wholesaler | 14 | | showing that the tax on the packages has been or will be | 15 | | paid. | 16 | | "Correctional Industries program" means a program run by a | 17 | | State penal
institution in which residents of the penal | 18 | | institution produce tobacco
products for sale to persons | 19 | | incarcerated in penal institutions or resident
patients of a | 20 | | State operated mental health facility.
| 21 | | "Department" means the Illinois Department of Revenue.
| 22 | | "Distributor" means any of the following:
| 23 | | (1) Any manufacturer or wholesaler in this State | 24 | | engaged in the business
of selling tobacco products who | 25 | | sells, exchanges, or distributes tobacco
products to | 26 | | retailers or consumers in this State.
|
| | | 10200SB1706ham001 | - 3 - | LRB102 16571 HLH 26201 a |
|
| 1 | | (2) Any manufacturer or wholesaler engaged
in
the | 2 | | business of selling tobacco products from without this | 3 | | State who sells,
exchanges, distributes,
ships, or | 4 | | transports tobacco products to retailers or consumers | 5 | | located in
this State,
so long as that manufacturer or | 6 | | wholesaler has or maintains within this State,
directly or | 7 | | by subsidiary, an office, sales house, or other place of | 8 | | business,
or any agent or other representative operating | 9 | | within this State under the
authority of the person or | 10 | | subsidiary, irrespective of whether the place of
business | 11 | | or agent or other representative is located here | 12 | | permanently or
temporarily.
| 13 | | (3) Any retailer who receives tobacco products on | 14 | | which the tax has not
been or
will not be paid by another | 15 | | distributor.
| 16 | | "Distributor" does not include any person, wherever | 17 | | resident or located, who
makes, manufactures, or fabricates | 18 | | tobacco products as part of a Correctional
Industries program | 19 | | for sale to residents incarcerated in penal institutions or
| 20 | | resident patients of a State operated mental health facility.
| 21 | | "Electronic cigarette" means: | 22 | | (1) any device that employs a battery or other | 23 | | mechanism to
heat a solution or substance to produce a | 24 | | vapor or aerosol
intended for inhalation , except (A) any | 25 | | device designed solely for use with cannabis that contains | 26 | | a statement on the retail packaging that the device is |
| | | 10200SB1706ham001 | - 4 - | LRB102 16571 HLH 26201 a |
|
| 1 | | designed solely for use with cannabis and not for use with | 2 | | tobacco or (B) any device that contains a solution or | 3 | | substance that contains cannabis subject to tax under the | 4 | | Compassionate Use of Medical Cannabis Program Act or the | 5 | | Cannabis Regulation and Tax Act ; | 6 | | (2) any cartridge or container of a solution or | 7 | | substance
intended to be used with or in the device or to | 8 | | refill the
device , except any cartridge or container of a | 9 | | solution or substance that contains cannabis subject to | 10 | | tax under the Compassionate Use of Medical Cannabis | 11 | | Program Act or the Cannabis Regulation and Tax Act ; or | 12 | | (3) any solution or substance, whether or not it | 13 | | contains
nicotine, intended for use in the device , except | 14 | | any solution or substance that contains cannabis subject | 15 | | to tax under the Compassionate Use of Medical Cannabis | 16 | | Program Act or the Cannabis Regulation and Tax Act. | 17 | | The changes made to the definition of "electronic | 18 | | cigarette" by this amendatory Act of the 102nd General | 19 | | Assembly apply on and after June 28, 2020, but no claim for | 20 | | credit or refund is allowed on or after the effective date of | 21 | | this amendatory Act of the 102nd General Assembly for such | 22 | | taxes paid during the period beginning June 28, 2020 and the | 23 | | effective date of this amendatory Act of the 102nd General | 24 | | Assembly . | 25 | | "Electronic cigarette"
includes, but is not limited to, | 26 | | any electronic nicotine
delivery system, electronic cigar, |
| | | 10200SB1706ham001 | - 5 - | LRB102 16571 HLH 26201 a |
|
| 1 | | electronic cigarillo,
electronic pipe, electronic hookah, vape | 2 | | pen, or similar product
or device, and any component or part | 3 | | that can be used to build
the product or device. "Electronic | 4 | | cigarette" does not include:
cigarettes, as defined in Section | 5 | | 1 of the Cigarette Tax Act; any
product approved by the United | 6 | | States Food and Drug
Administration for sale as a tobacco | 7 | | cessation product, a
tobacco dependence product, or for other | 8 | | medical purposes that
is marketed and sold solely for that | 9 | | approved purpose; any
asthma inhaler prescribed by a physician | 10 | | for that condition that is marketed and sold solely for that | 11 | | approved purpose; or
any therapeutic product approved for use | 12 | | under the Compassionate Use of Medical Cannabis Program Act. | 13 | | "Little cigar" means and includes any roll, made wholly or | 14 | | in part of tobacco, where such roll has an integrated | 15 | | cellulose acetate filter and weighs less than 4 pounds per | 16 | | thousand and the wrapper or cover of which is made in whole or | 17 | | in part of tobacco. | 18 | | "Manufacturer" means any person, wherever resident or | 19 | | located, who
manufactures and sells tobacco products, except a | 20 | | person who makes,
manufactures, or fabricates tobacco products | 21 | | as a part of a Correctional
Industries program for sale to | 22 | | persons incarcerated in penal institutions or
resident | 23 | | patients of a State operated mental health facility.
| 24 | | Beginning on January 1, 2013, "moist snuff" means any | 25 | | finely cut, ground, or powdered tobacco that is not intended | 26 | | to be smoked, but shall not include any finely cut, ground, or |
| | | 10200SB1706ham001 | - 6 - | LRB102 16571 HLH 26201 a |
|
| 1 | | powdered tobacco that is intended to be placed in the nasal | 2 | | cavity. | 3 | | "Person" means any natural individual, firm, partnership, | 4 | | association, joint
stock company, joint venture, limited | 5 | | liability company, or public or private
corporation, however | 6 | | formed, or a receiver, executor, administrator, trustee,
| 7 | | conservator, or other representative appointed by order of any | 8 | | court.
| 9 | | "Place of business" means and includes any place where | 10 | | tobacco products
are sold or where tobacco products are | 11 | | manufactured, stored, or kept for
the purpose of sale or | 12 | | consumption, including any vessel, vehicle, airplane,
train, | 13 | | or vending machine.
| 14 | | "Retailer" means any person in this State engaged in the | 15 | | business of selling
tobacco products to consumers in this | 16 | | State, regardless of quantity or number
of sales.
| 17 | | "Sale" means any transfer, exchange, or barter in any | 18 | | manner or by any means
whatsoever for a consideration and | 19 | | includes all sales made by
persons.
| 20 | | "Stamp" or "stamps" mean the indicia required to be | 21 | | affixed on a package of little cigars that evidence payment of | 22 | | the tax on packages of little cigars containing 20 or 25 little | 23 | | cigars under Section 10-10 of this Act. These stamps shall be | 24 | | the same stamps used for cigarettes under the Cigarette Tax | 25 | | Act. | 26 | | "Stamping distributor" means a distributor licensed under |
| | | 10200SB1706ham001 | - 7 - | LRB102 16571 HLH 26201 a |
|
| 1 | | this Act and also licensed as a distributor under the | 2 | | Cigarette Tax Act or Cigarette Use Tax Act. | 3 | | "Tobacco products" means any cigars, including little | 4 | | cigars; cheroots; stogies; periques; granulated,
plug cut, | 5 | | crimp cut, ready rubbed, and other smoking tobacco; snuff | 6 | | (including moist snuff) or snuff
flour; cavendish; plug and | 7 | | twist tobacco; fine-cut and other chewing tobaccos;
shorts; | 8 | | refuse scraps, clippings, cuttings, and sweeping of tobacco; | 9 | | and
other kinds and forms of tobacco, prepared in such manner | 10 | | as to be suitable for
chewing or smoking in a pipe or | 11 | | otherwise, or both for chewing and smoking; but
does not | 12 | | include cigarettes as defined in Section 1 of the Cigarette | 13 | | Tax Act or tobacco purchased for the manufacture of
cigarettes | 14 | | by cigarette distributors and manufacturers defined in the
| 15 | | Cigarette Tax Act and persons who make, manufacture, or | 16 | | fabricate
cigarettes as a part of a Correctional Industries | 17 | | program for sale to
residents incarcerated in penal | 18 | | institutions or resident patients of a
State operated mental | 19 | | health facility.
| 20 | | Beginning on July 1, 2019, "tobacco products" also | 21 | | includes
electronic cigarettes. | 22 | | "Wholesale price" means the established list price for | 23 | | which a manufacturer
sells tobacco products to a distributor, | 24 | | before the allowance of any discount,
trade allowance, rebate, | 25 | | or other reduction.
In the absence of such an established list | 26 | | price, the manufacturer's invoice
price at which the |
| | | 10200SB1706ham001 | - 8 - | LRB102 16571 HLH 26201 a |
|
| 1 | | manufacturer sells the tobacco product to unaffiliated
| 2 | | distributors, before any discounts, trade allowances, rebates, | 3 | | or other
reductions, shall be presumed to be the wholesale | 4 | | price.
| 5 | | "Wholesaler" means any person, wherever resident or | 6 | | located, engaged in the
business of selling tobacco products | 7 | | to others for the purpose of resale. "Wholesaler", when used | 8 | | in this Act, does not include a person licensed as a | 9 | | distributor under Section 10-20 of this Act unless expressly | 10 | | stated in this Act.
| 11 | | (Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.".
|
|