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90_HB0944 New Act 35 ILCS 130/4 from Ch. 120, par. 453.4 35 ILCS 135/4 from Ch. 120, par. 453.34 235 ILCS 5/3-12 from Ch. 43, par. 108 720 ILCS 675/Act rep. 720 ILCS 680/Act rep. Creates the Illinois Underage Purchase, Possession and Sales Prevention Act of 1997. Provides penalties for the distribution of tobacco to a person under 18 years of age. Prohibits a person under 18 years from acquiring or attempting to acquire tobacco. Provides certain training requirements for retail clerks who sell tobacco. Provides that no person may sell tobacco through a vending machine unless certain guidelines concerning who may have access to the machine are met. Prohibits the sale of tobacco other than in sealed packages. Requires that tobacco retailers be licensed. Provides that the Act shall be enforced by the Liquor Control Commission. Provides various penalties for various violations of the Act. Provides that a second or subsequent violation of the prohibition against selling tobacco products at retail is a Class B misdemeanor. Preempts home rule. Amends the Cigarette Tax Act. Provides that part of the fee for a distributor's license under the Act shall be used to assist the Liquor Control Commission in enforcing the Illinois Underage Purchase, Possession, and Sales Prevention Act of 1997. Amends the Cigarette Use Tax Act. Provides that a portion of the fee for a distributor's license under the Act shall be used to assist the Liquor Control Commission in enforcing the Illinois Underage Purchase, Possession, and Sales Prevention Act of 1997. Amends the Liquor Control Act of 1934. Removes obsolete provisions. Provides that the Liquor Control Commission shall be responsible for issuing licenses to engage in the retail sale of tobacco products. Repeals the Sale of Tobacco to Minors Act and the Smokeless Tobacco Limitation Act. Effective immediately. LRB9003963LDdv LRB9003963LDdv 1 AN ACT in relation to tobacco products, creating a new 2 Act, and amending certain named Acts, and repealing certain 3 Acts. 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 1. Short title. This Act may be cited as the 7 Illinois Underage Purchase, Possession, and Sales Prevention 8 Act of 1997. 9 Section 5. Definitions. For purposes of this Act: 10 "Distribute" means to give, deliver, sell, furnish, or 11 provide tobacco products, including tobacco product samples, 12 to the ultimate consumer. 13 "Enforcement agency" means the Illinois Liquor Control 14 Commission. 15 "Inspection" means the inspection described in Section 16 1926(b) of the Federal Public Health Service Act (42 U.S.C. 17 300x-26(b)). 18 "Person" means any natural person, company, corporation, 19 firm, partnership, organization, or other legal entity. 20 "Proof of age" means a driver's license or other 21 documentary or written evidence that purports to establish 22 that the person is 18 years of age or older. 23 "Sample" means a tobacco product distributed for members 24 of the general public at no cost for purposes of promoting 25 the product. 26 "Seller" means any person who distributes tobacco 27 products for commercial purposes. 28 "Tobacco product" means any product that contains tobacco 29 and is intended for human consumption. 30 "Vending machine" means any mechanical, electric, or 31 electronic self-service device which, upon insertion of -2- LRB9003963LDdv 1 money, tokens, or any other form of payment, automatically 2 dispenses tobacco products. 3 Section 10. Prohibition of sale or distribution of 4 tobacco products to persons under 18 years of age. 5 (a) No person shall sell, buy for, or distribute any 6 tobacco product to another person who has not attained 18 7 years of age; provided however, that it shall not be unlawful 8 to distribute a tobacco product to any employee when required 9 in the performance of the employee's duties. 10 (b) It shall be an affirmative defense to any action 11 brought pursuant to this Section if the defendant shows any 12 one of the following: 13 (1) That the purchaser or recipient falsely 14 represented that he or she had attained the age of 18; 15 (2) That the purchaser or recipient presented 16 purported proof of age showing that he or she had 17 attained the age of 18; 18 (3) That the appearance of the purchaser or 19 recipient was such that an ordinary and prudent person 20 would believe that the purchaser had attained the age of 21 18; or 22 (4) That the sale was made in good faith and 23 reasonable reliance on the purported proof of age and 24 appearance of the purchaser or recipient in the belief by 25 the seller that the purchaser or recipient had attained 26 the age of 18. 27 (c) A person who distributes tobacco products at retail 28 shall not be convicted of a violation of this Section unless 29 the person under 18 years of age who purchased, attempted to 30 purchase, or possessed tobacco products has been convicted 31 under Section 15, provided such purchase, attempt to 32 purchase, or possession did not occur pursuant to Section 50. 33 (d) Any person with a license under Section 40 and any -3- LRB9003963LDdv 1 employee or agent of such person who violates this Section is 2 guilty of a petty offense and for the first offense shall be 3 fined $200, for the second offense in a 12-month period, 4 $400, and for the third or subsequent offense in a 12-month 5 period, $500. Any other person who sells or distributes 6 tobacco products in violation of this Section is guilty of a 7 petty offense and for the first offense shall be fined $200, 8 for the second offense in a 12-month period, $400, and for 9 the third or subsequent offense in a 12-month period, $500. 10 (e) For purposes of determining the liability of a 11 person controlling franchises or business operations in 12 multiple locations for a second or subsequent violation of 13 this Section, each individual franchise or business location 14 shall be deemed a separate entity. 15 Section 15. Juvenile purchase, possession, and 16 consumption of tobacco. 17 (a) Except as provided in Section 50 of this Act, no 18 person under 18 years of age shall attempt to purchase, 19 purchase, accept receipt of, possess, use, or offer to any 20 person any purported proof of age that is false, fraudulent, 21 or not actually his or her own, for the purpose of purchasing 22 or receiving any tobacco product; provided, however, that it 23 shall not be unlawful for such a person to accept receipt of 24 a tobacco product from an employer when required in the 25 performance of the employee's duties. 26 (b) Any person under 18 years of age who violates this 27 Section shall be guilty of a petty offense and shall be 28 penalized as follows: 29 (1) For the first offense, by a mandatory 30 suspension of his or her Illinois driver's license (or in 31 the case of a person without an Illinois driver's 32 license, a postponement of driver's license application 33 eligibility) for a period not to exceed 60 days. -4- LRB9003963LDdv 1 (2) For a second offense, a $200 fine and a 2 mandatory suspension of his or her Illinois driver's 3 license (or in the case of a person without an Illinois 4 driver's license, a postponement of driver's license 5 application eligibility) for a 90-day period. 6 (3) For a third or subsequent offense, a $500 fine 7 and a mandatory suspension of his or her Illinois 8 driver's license (or in the case of a person without an 9 Illinois driver's license a postponement of driver's 10 license application eligibility) for a 180-day period. 11 In geographic areas in which educational programs 12 addressing the risks of tobacco consumption are available, a 13 court may also require participation in such an educational 14 program. 15 Section 20. Training of retail clerks. 16 (a) Every person engaged in the business of selling 17 tobacco products at retail shall notify each individual 18 employed by that person as a retail sales clerk that State 19 law prohibits the sale or distribution of tobacco products to 20 any person under 18 years of age and out-of-package sales of 21 cigarettes and smokeless tobacco. This notice shall be 22 provided before the individual commences work as a retail 23 sales clerk, or, in the case of an individual employed as a 24 retail sales clerk on the effective date of this Act, within 25 30 days of that date. The individual shall signify that he 26 or she has received the notice required by this Section by 27 signing a form stating as follows: 28 "I understand that State law prohibits the sale or 29 distribution of tobacco products to persons under 18 30 years of age and out-of-package sales of cigarettes and 31 smokeless tobacco products. I promise, as a condition of 32 my employment, to observe this law." 33 Each form signed by such individual shall indicate the date -5- LRB9003963LDdv 1 of signature. The employer shall retain the form signed by 2 each individual employed as a retail sales clerk until 120 3 days after the individual has left the employer's employ. 4 (b) Any employer who fails to comply with the 5 requirements of this Section is guilty of a petty offense and 6 for the first offense shall be fined $200, for the second 7 offense in a 12-month period, $400, and for the third or 8 subsequent offense in a 12-month period, $500. An employer 9 who complies with the requirements o this Section and who has 10 in effect a training program designed to make his or her 11 employees aware of how to comply with the requirements of 12 Section 10 shall not be subject to any civil penalty or 13 suspension, revocation, denial, or nonrenewal of a license by 14 reason of a sale to a person 18 years of age by a retail 15 sales clerk if the sales clerk had not been convicted of a 16 first offense under that Section prior to such sale. 17 Section 25. Signs. 18 (a) On and after the effective date of this Act, every 19 person who sells tobacco products at retail over the counter 20 shall post and maintain in legible condition, a sign stating 21 the following: 22 "STATE LAW STRICTLY PROHIBITS THE SALE OF TOBACCO 23 PRODUCTS TO PERSONS UNDER 18 YEARS OF AGE, THE PURCHASE 24 OF OR ATTEMPT TO PURCHASE SUCH TOBACCO PRODUCTS BY 25 PERSONS UNDER 18 YEARS OF AGE, OR THE OFFERING OF FALSE 26 PROOF OF AGE IN ORDER TO PURCHASE SUCH PRODUCTS." 27 (b) Any person who fails to place and maintain the sign 28 required by this Section 25 is guilty of a petty offense and 29 shall be fined not more than $100. 30 Section 30. Restriction on vending machines. 31 (a) No person shall sell tobacco products through a 32 vending machine unless the vending machine is located: -6- LRB9003963LDdv 1 (1) In an area of factories, businesses, offices, 2 private clubs, and other places not open to the general 3 public; 4 (2) In an area that is open to the public but to 5 which persons under the age of 18 years are denied 6 access; 7 (3) In a place where alcoholic beverages are sold 8 for consumption on the premises; 9 (4) In other places, but only if the machine (i) is 10 under the continuous supervision of the owner or lessee 11 of the premises or an employee thereof, (ii) can be 12 operated only by the activation of an electronic switch 13 by the owner or lessee of the premises or an employee 14 thereof prior to each purchase, and (iii) is inaccessible 15 to the public when the establishment is closed. 16 (b) A person who violates this Section 30 is guilty of a 17 petty offense and shall be fined $200 for the first offense, 18 $400 for the second offense in a 12-month period, and $500 19 for the third or any subsequent offense in a 12-month period. 20 Section 35. Prohibition on distribution of tobacco 21 products other than in sealed packages. 22 (a) No person shall sell cigarettes or smokeless tobacco 23 products other than in an unopened package originating with 24 the manufacturer. 25 (b) A person who violates this Section 35 is guilty of a 26 petty offense and shall be fined $200 for the first offense, 27 $400 for the second offense in a 12-month period, and $500 28 for the third or any subsequent offense in a 12-month period. 29 Section 40. Licensing of tobacco product retailers. 30 (a) No person shall engage in the retail sale of tobacco 31 products over the counter or through any vending machine on 32 or after 180 days after the effective date of this Act, -7- LRB9003963LDdv 1 unless the person is authorized to do so by a license issued 2 pursuant to this Section 40, or is an employee or agent of a 3 person who has been issued a license pursuant to this Section 4 40. For purposes of this Section 40, the person deemed to be 5 engaged in the retail sale of tobacco products through a 6 vending machine shall be the owner of the business 7 establishment where the vending machine is located 8 (b) The annual license fee for the retail sale of 9 tobacco products shall be as follows: 10 (1) Twenty-five dollars for each place of business 11 where tobacco products are sold over the counter at 12 retail. A separate license shall be required for each 13 place of business where tobacco products are sold over 14 the counter at retail. 15 (2) Twenty-five dollars for each vending machine. 16 A separate license shall be required for each vending 17 machine through which tobacco products are sold. 18 (c) Every application for a license under this Section 19 40 shall be made upon a form provided by the Enforcement 20 Agency and shall set forth the name under which the applicant 21 transacts or intends to transact business, the location of 22 the place of business or vending machine for which the 23 license is to be issued, and any other identifying 24 information that the Enforcement Agency may require. 25 (d) Every license issued by the Enforcement Agency 26 pursuant to this Section 40 shall be valid for one year from 27 the date of issuance and shall be renewed upon application 28 except as otherwise provided in this Act. Upon notification 29 of a change of address, if required by the Enforcement 30 Agency, a license shall be reissued for the new address 31 without the filing of a new application. 32 (e) On or before 90 days after the effective date of 33 this Act, the Enforcement Agency shall notify every person in 34 this State who engages in the retail sale of tobacco -8- LRB9003963LDdv 1 products, including retail sale through vending machines, of 2 the license requirements imposed by this Section 40. 3 (f) The Agency shall issue a license or renewal of a 4 license within 30 days of receiving a properly completed 5 application and the applicable license fee. A license or 6 renewal thereof shall not be withheld or denied; provided, 7 however, that (i) no license shall be issued for the sale of 8 tobacco products through a vending machine that dispenses any 9 product in addition to tobacco products, and (ii) no license 10 shall be issued for the sale of tobacco products through a 11 vending machine unless the applicant certifies compliance 12 with the restrictions set forth in Section 30(a) with respect 13 to the machine for which the license is issued. No terms or 14 conditions shall be imposed by any governmental body for the 15 issuance, maintenance, or renewal of a license for the retail 16 sale of tobacco products except as specified in this Section 17 40. 18 (g) Any person who engages in the retail sale of tobacco 19 products without a license as required by this Section 40, or 20 after a license issued pursuant to this Section 40 has been 21 suspended is guilty of a business offense, for which a 22 mandatory $1,000 fine shall be imposed. A person convicted of 23 a second or subsequent violation of this Section 40 is guilty 24 of a Class B misdemeanor. No person shall be liable for more 25 than one violation per day. 26 (h) A license issued under this Section 40 is not 27 assignable and is valid only for the person in whose name it 28 is issued and for the place of business or vending machine 29 designated therein. No license shall be required and no fee 30 shall be specified for the retail sale of tobacco products 31 other than the license required and the fee specified under 32 this Section 40. License fees shall not be raised except by 33 act of the General Assembly. -9- LRB9003963LDdv 1 Section 45. Suspension, revocation, denial, and 2 nonrenewal of licenses. 3 (a) Upon finding that a licensee or an employee or agent 4 of the licensee has been determined by a court of competent 5 jurisdiction to have committed during the license term 3 or 6 more violations of this Act involving the same place of 7 business or vending machine for which the license was issued, 8 the Enforcement Agency shall notify the licensee in writing, 9 served personally or by mail, that any subsequent violation 10 thereof during the license term may result in an 11 administrative action to suspend the license for a period not 12 to exceed 30 days. 13 (b) Upon finding that a further violation has occurred 14 during the license term notwithstanding the notice provided 15 under subsection (a) of this Section 45 involving the same 16 place of business or vending machine for which the license 17 was issued, the Enforcement Agency may initiate an 18 administrative action to suspend the license. No license 19 shall be suspended except after a hearing by the Enforcement 20 Agency with reasonable notice to the licensee served by 21 registered or certified mail with return receipt requested at 22 least 5 days prior to the hearing at the last place of 23 business of the licensee and after an opportunity to appear 24 and defend. Such notice shall specify the time and place of 25 the hearing and the nature of the charges. The findings of 26 the Enforcement Agency shall be predicated upon competent 27 evidence. 28 (c) The Enforcement Agency may initiate an 29 administrative action to revoke a license that previously has 30 been suspended under subsection (b) of this Section 45 if, 31 during the license term, a further violation of this Act is 32 committed involving the same place of business or vending 33 machine for which the license was issued. No license shall 34 be suspended except after a hearing by the Enforcement Agency -10- LRB9003963LDdv 1 with reasonable notice to the licensee served by registered 2 or certified mail with return receipt requested at least 5 3 days prior to the hearings at the last place of business of 4 the licensee and after an opportunity to appear and defend. 5 Such notice shall specify the time and place of the hearing 6 and the nature of the charges. The findings of the 7 Enforcement Agency shall be predicated upon competent 8 evidence. 9 (d) A copy of the order or decision of the Enforcement 10 Agency, in any proceeding before it, certified under the seal 11 of the Enforcement Agency, shall be served upon each party of 12 record to the proceeding before the Enforcement Agency and 13 service upon any attorney of record for any such party shall 14 be deemed service upon such party. Each party appearing 15 before the Enforcement Agency shall enter his or her 16 appearance and indicate to the Enforcement Agency his or her 17 address for the service of a copy of any order, decision, or 18 notice and the mailing of a copy of an order or decision of 19 the Enforcement Agency or of a notice by the Enforcement 20 Agency in the proceeding to that party at his or her address 21 shall be deemed service upon that party. Within 20 days 22 after the service of an order or decision of the Enforcement 23 Agency upon a party to the proceeding, that party may apply 24 for a rehearing with respect to any matter determined by the 25 Enforcement Agency. If a rehearing is granted, the Agency 26 shall hold the rehearing and render a decision within 20 days 27 after the filing of the application for rehearing with the 28 secretary of the Enforcement Agency. The time for holding 29 the rehearing and tendering a decision may be extended for a 30 period not to exceed 30 days, for good cause shown, and by 31 notice in writing to all parties of interest. No action for 32 the judicial review of any decision of the Enforcement Agency 33 shall be allowed unless the party commencing the action has 34 first filed an application for a rehearing and the -11- LRB9003963LDdv 1 Enforcement Agency has acted upon that application. Only one 2 rehearing may be granted by the Enforcement Agency on 3 application of any one party. 4 (e) The Enforcement Agency may refuse to grant or renew 5 a license under this Act to any person determined by a court 6 of competent jurisdiction to have committed more than 3 7 violations of this Act during the year preceding the date on 8 which the license or renewal application was filed with the 9 Enforcement Agency. Before refusing to grant or renew a 10 license under this Act, the Enforcement Agency shall give the 11 applicant an opportunity, at least 14 days after written 12 notice is served, personally or by mail upon the applicant, 13 to show why the denial or nonrenewal would be unwarranted or 14 unjust. 15 (f) A person whose license has been suspended or revoked 16 pursuant to this Act shall pay the Enforcement Agency a fee 17 of $50 for the renewal or reissuance of the license. For 18 purposes of determining the liability of a person controlling 19 franchises or business operations in multiple locations for a 20 second or subsequent violation of this Act, each individual 21 franchise or business location shall be deemed a separate 22 entity. 23 (g) All final administrative decisions of the 24 Enforcement Agency under this Act shall be subject to 25 judicial review pursuant to the provisions of the 26 Administrative Review Law and the rules adopted pursuant to 27 the Administrative Review Law. The term "administrative 28 decision" has the same meaning as in Section 3-101 of the 29 Code of Civil Procedure. 30 Section 50. Unannounced inspections; reporting and 31 compliance. 32 (a) The Enforcement Agency shall enforce this Act in a 33 manner that can reasonably be expected to reduce the extent -12- LRB9003963LDdv 1 to which tobacco products are sold or distributed to persons 2 under 18 years of age, and shall annually conduct random, 3 unannounced inspections at locations where tobacco products 4 are sold or distributed, including vending machines, to 5 ensure compliance with this Act. The Enforcement Agency may 6 enter into contracts with the following law enforcement 7 agencies, if those law enforcement agencies demonstrate a 8 pattern of enforcement of Section 15 of this Act, under which 9 the agencies will be authorized to conduct inspections, and 10 engage in enforcement actions, as provided in this Section: 11 (1) the Illinois State Police; 12 (2) the sheriff of a county; or 13 (3) the head of the police department or police 14 force of any county, city, town, or village. 15 (b) The program of inspections authorized under this 16 Section 50 shall cover a range of licensed establishments 17 that reflects the distribution of the population under 18 18 years of age throughout the State where persons under 18 19 years of age are most likely to attempt to purchase tobacco 20 products. Licensed establishments shall not be selected for 21 inspection on the basis of evidence concerning prior 22 violations. If the Enforcement Agency conducts an inspection 23 at an establishment that does not result in evidence of a 24 violation, the Enforcement Agency shall not conduct another 25 inspection at the same establishment for a period of not less 26 than one year. 27 (c) For purposes of inspections and enforcement actions 28 undertaken pursuant to this Section 50, persons under 18 29 years of age may be enlisted to attempt to purchase or to 30 purchase tobacco products, provided that such persons shall 31 have the prior written consent of a parent or legal guardian, 32 and provided further that such persons shall be directly 33 supervised during the conduct of each inspection or 34 enforcement action by an adult employee of the Enforcement -13- LRB9003963LDdv 1 Agency or by the Illinois State Police, the sheriff of a 2 county, county police department, the head of the police 3 department or police force of any county, city, town, or 4 village, or any officer or employee thereof. No person under 5 18 years of age may misrepresent his or her age for the 6 purpose of purchasing or attempting to purchase tobacco 7 products. If questioned about his or her age during an 8 attempt to purchase or receive tobacco products, a person 9 under 18 years of age shall state his or her true age and 10 that he or she is under 18 years of age. A person under 18 11 years of age shall not be used in any inspection or 12 enforcement action at an establishment in which that person 13 is a regular customer. A photograph or video recording of 14 any person under 18 years of age assisting in an inspection 15 or enforcement action shall be taken prior to and after each 16 inspection or enforcement action, or shift of inspections or 17 enforcement actions, and retained for 2 years. The 18 appearance of a person under 18 years of age participating in 19 an inspection or enforcement action shall not be altered. 20 (d) The owner or an authorized employee of an 21 establishment where an inspection or enforcement action under 22 this Section 50 takes place shall be informed of the results 23 of the inspection or enforcement action not more than 72 24 hours after the inspection or enforcement action is 25 completed. The employee of the department or law enforcement 26 officer who directly supervised an inspection conducted 27 pursuant to this Section shall prepare a written report 28 within 7 days after completion. A copy of that report shall 29 be delivered to the owner of the establishment where the 30 inspection took place within 14 days of completion. The 31 report shall include the name and position of the person who 32 directly supervised the inspection, the age and date of birth 33 of the person under 18 years of age who assisted with the 34 inspection, the date and time of the inspection, a reasonably -14- LRB9003963LDdv 1 detailed description of the inspection, and the result of the 2 inspection. Any use of persons under 18 years of age other 3 than that permitted by this Section 50 to measure compliance 4 with or to enforce Section 10 or any other prohibitions of 5 like or similar import shall be unlawful and the person or 6 persons responsible for such use shall be subject to the 7 penalties prescribed for violation of Section 10. 8 (e) The Enforcement Agency shall compile the results of 9 inspections performed pursuant to this Section 50, and shall 10 prepare an annual report reflecting such results for 11 submission with the State's application for federal block 12 grants for substance abuse prevention and treatment in 13 accordance with the requirements of Section 1926 of the 14 federal Public Health Services Act (42 U.S.C. 300x-26). 15 (f) Failure to comply with any requirement of 16 subsections (a) through (d) of this Section 50 during an 17 inspection or enforcement action shall be an affirmative 18 defense to any action for violation of Section 10 brought as 19 a result of such inspection or enforcement action. 20 Information gathered during an inspection or enforcement 21 action that was conducted in a manner not in accordance with 22 this Section shall not be admitted as evidence in any action 23 and shall not be used in any report, filing, application, or 24 publication prepared by the Enforcement Agency or any other 25 agency of the State, including any report under Section 1926 26 of the federal Public Health Services Act (42 U.S.C. 27 300x-26). 28 (g) The Enforcement Agency shall negotiate annually with 29 the United States Secretary of Health and Human Services 30 interim performance targets and the time frame for achieving 31 the ultimate performance objective as provided in 45 C.F.R. 32 96.130. The Enforcement Agency shall not agree to any 33 interim performance target or any such time frame that is not 34 realistic and attainable, and shall strive consistent with -15- LRB9003963LDdv 1 this Section 50 and with Section 10 to ensure continued 2 federal funding for the State's substance abuse programs. 3 (h) To support inspections and enforcement actions 4 authorized under this Section, the Enforcement Agency may 5 expend funds from the following to the full extent permitted 6 by federal law: 7 (1) The primary prevention set-aside portion of 8 federal block grants for substance abuse prevention and 9 treatment (45 C.F.R. 96.124(b)(1)); 10 (2) The Centers for Disease Control's Preventive 11 Health and Health Services Block Grant (42 U.S.C. par. 12 300-w et seq.); and 13 (3) Any other available source of federal funds. 14 Section 55. Offset for enforcement and inspection. 15 License fees and penalties collected pursuant to this Act 16 shall be distributed to the Enforcement Agency for the 17 administration and enforcement of this Act. 18 Section 60. Preemption. 19 (a) Except as provided in subsection (b) of this 20 Section, a home rule or non-home rule unit of local 21 government in this State shall not have the power or 22 authority to enact or enforce any laws, ordinances, rules, or 23 regulations concerning the sale, distribution, display, use, 24 advertising or promotion of tobacco products. Except as 25 provided in subsection (b) of this Section, the power and 26 authority to regulate the sale, distribution, display, use 27 advertising, and promotion of tobacco products is an 28 exclusive State power or function. This Act is a denial and 29 limitation of home rule powers and functions under subsection 30 (h) of Section 6 of Article VII of the Illinois Constitution. 31 (b) Subsection (a) shall not preclude a home rule or 32 non-home rule unit from continuing to require a license or -16- LRB9003963LDdv 1 permit as a condition of selling tobacco products pursuant to 2 an ordinance enacted prior to the effective date of this Act 3 for the sole purpose of collecting the license or permit fee; 4 provided, that the fee imposed to obtain such permit or 5 license may not exceed the fee in effect on the effective 6 date of this Act. 7 Section 150. The Cigarette Tax Act is amended by 8 changing Section 4 as follows: 9 (35 ILCS 130/4) (from Ch. 120, par. 453.4) 10 Sec. 4. No person may engage in business as a distributor 11 of cigarettes in this State within the meaning of the first 2 12 definitions of distributor in Section 1 of this Act without 13 first having obtained a license therefor from the Department. 14 Application for license shall be made to the Department in 15 form as furnished and prescribed by the Department. Each 16 applicant for a license under this Section shall furnish to 17 the Department on the form signed and verified by the 18 applicant the following information: 19 (a) The name and address of the applicant; 20 (b) The address of the location at which the applicant 21 proposes to engage in business as a distributor of cigarettes 22 in this State; 23 (c) Such other additional information as the Department 24 may lawfully require by its rules and regulations. 25 The annual license fee payable to the Department for each 26 distributor's license shall be $250. The purpose of such 27 annual license fee is to defray the cost, to the Department, 28 of coding, serializing or coding and serializing, cigarette 29 tax stamps, and to assist the Enforcement Agency defined in 30 Section 5 of the Illinois Underage Purchase, Possession, and 31 Sales Prevention Act of 1997 with costs associated with the 32 enforcement of that Act. Each applicant for license shall pay -17- LRB9003963LDdv 1 such fee to the Department at the time of submitting his 2 application for license to the Department. Such fee shall be 3 divided equally between the Department and the Enforcement 4 Agency defined in Section 5 of the Illinois Underage 5 Purchase, Possession, and Sales Prevention Act of 1997. The 6 portion allocable to the Enforcement Agency shall be 7 transferred by the Department to the Enforcement Agency. 8 Every applicant who is required to procure a 9 distributor's license shall file with his application a joint 10 and several bond. Such bond shall be executed to the 11 Department of Revenue, with good and sufficient surety or 12 sureties residing or licensed to do business within the State 13 of Illinois, in the amount of $2,500, conditioned upon the 14 true and faithful compliance by the licensee with all of the 15 provisions of this Act. Such bond, or a reissue thereof, or a 16 substitute therefor, shall be kept in effect during the 17 entire period covered by the license. A separate application 18 for license shall be made, a separate annual license fee 19 paid, and a separate bond filed, for each place of business 20 at which a person who is required to procure a distributor's 21 license under this Section proposes to engage in business as 22 a distributor in Illinois under this Act. 23 The following are ineligible to receive a distributor's 24 license under this Act: 25 (1) a person who is not of good character and reputation 26 in the community in which he resides; 27 (2) a person who has been convicted of a felony under 28 any Federal or State law, if the Department, after 29 investigation and a hearing, if requested by the applicant, 30 determines that such person has not been sufficiently 31 rehabilitated to warrant the public trust; 32 (3) a corporation, if any officer, manager or director 33 thereof, or any stockholder or stockholders owning in the 34 aggregate more than 5% of the stock of such corporation, -18- LRB9003963LDdv 1 would not be eligible to receive a license under this Act for 2 any reason; 3 (4) a person previously licensed as a distributor or 4 wholesaler who has been convicted of a second offense under 5 Section 35 of the Illinois Underage Purchase, Possession, and 6 Sales Prevention Act of 1997. 7 The Department, upon receipt of an application, license 8 fee and bond in proper form, from a person who is eligible to 9 receive a distributor's license under this Act, shall issue 10 to such applicant a license in form as prescribed by the 11 Department, which license shall permit the applicant to which 12 it is issued to engage in business as a distributor at the 13 place shown in his application. All licenses issued by the 14 Department under this Act shall be valid for not to exceed 15 one year after issuance unless sooner revoked, canceled or 16 suspended as provided in this Act. No license issued under 17 this Act is transferable or assignable. Such license shall be 18 conspicuously displayed in the place of business conducted by 19 the licensee in Illinois under such license. 20 (Source: P.A. 78-255.) 21 Section 160. The Cigarette Use Tax Act is amended by 22 changing Section 4 as follows: 23 (35 ILCS 135/4) (from Ch. 120, par. 453.34) 24 Sec. 4. A distributor maintaining a place of business in 25 this State, if required to procure a license or allowed to 26 obtain a permit as a distributor under the Cigarette Tax Act, 27 need not obtain an additional license or permit under this 28 Act, but shall be deemed to be sufficiently licensed or 29 registered by virtue of his being licensed or registered 30 under the Cigarette Tax Act. 31 Every distributor maintaining a place of business in this 32 State, if not required to procure a license or allowed to -19- LRB9003963LDdv 1 obtain a permit as a distributor under the Cigarette Tax Act, 2 shall make a verified application to the Department (upon a 3 form prescribed and furnished by the Department) for a 4 license to act as a distributor under this Act. In completing 5 such application, the applicant shall furnish such 6 information as the Department may reasonably require. 7 The annual license fee payable to the Department for each 8 distributor's license shall be $250. The purpose of such 9 annual license fee is to defray the cost, to the Department, 10 of coding, serializing, or coding and serializing cigarette 11 tax stamps, and to assist the Enforcement Agency defined in 12 Section 5 of the Illinois Underage Purchase, Possession, and 13 Sales Prevention Act of 1997 with costs associated with the 14 enforcement of that Act. The applicant for license shall pay 15 such fee to the Department at the time of submitting the 16 application for license to the Department. Such fee shall be 17 divided equally between the Department and the Enforcement 18 Agency defined in Section 5 of the Illinois Underage 19 Purchase, Possession, and Sales Prevention Act of 1997. The 20 portion allocable to the Enforcement Agency shall be 21 transferred by the Department to the Enforcement Agency. 22 Such applicant shall file, with his application, a joint 23 and several bond. Such bond shall be executed to the 24 Department of Revenue, with good and sufficient surety or 25 sureties residing or licensed to do business within the State 26 of Illinois, in the amount of $2,500, conditioned upon the 27 true and faithful compliance by the licensee with all of the 28 provisions of this Act. Such bond, or a reissue thereof, or a 29 substitute therefor, shall be kept in effect during the 30 entire period covered by the license. A separate application 31 for license shall be made, a separate annual license fee 32 paid, and a separate bond filed, for each place of business 33 at or from which the applicant proposes to act as a 34 distributor under this Act and for which the applicant is not -20- LRB9003963LDdv 1 required to procure a license or allowed to obtain a permit 2 as a distributor under the Cigarette Tax Act. 3 The following are ineligible to receive a distributor's 4 license under this Act: 5 (1) a person who is not of good character and reputation 6 in the community in which he resides; 7 (2) a person who has been convicted of a felony under 8 any Federal or State law, if the Department, after 9 investigation and a hearing, if requested by the applicant, 10 determines that such person has not been sufficiently 11 rehabilitated to warrant the public trust; 12 (3) a corporation, if any officer, manager or director 13 thereof, or any stockholder or stockholders owning in the 14 aggregate more than 5% of the stock of such corporation, 15 would not be eligible to receive a license hereunder for any 16 reason; 17 (4) a person previously licensed as a distributor or 18 wholesaler who has been convicted of a second offense under 19 Section 35 of the Illinois Underage Purchase, Possession, and 20 Sales Prevention Act of 1997. 21 Upon approval of such application and bond and payment of 22 the required annual license fee, the Department shall issue a 23 license to the applicant. Such license shall permit the 24 applicant to engage in business as a distributor at or from 25 the place shown in his application. All licenses issued by 26 the Department under this Act shall be valid for not to 27 exceed one year after issuance unless sooner revoked, 28 canceled or suspended as in this Act provided. No license 29 issued under this Act is transferable or assignable. Such 30 license shall be conspicuously displayed at the place of 31 business for which it is issued. 32 (Source: P.A. 78-255.) 33 Section 180. The Liquor Control Act of 1934 is amended -21- LRB9003963LDdv 1 by changing Section 3-12 as follows: 2 (235 ILCS 5/3-12) (from Ch. 43, par. 108) 3 (Text of Section before amendment by P.A. 89-507) 4 Sec. 3-12. The State commission shall have the following 5 powers, functions and duties: 6 (1) To receive applications and to issue licenses to 7 manufacturers, foreign importers, importing distributors, 8 distributors, non-resident dealers, on premise consumption 9 retailers, off premise sale retailers, special event retailer 10 licensees, special use permit licenses, auction liquor 11 licenses, brew pubs, caterer retailers, non-beverage users, 12 railroads, including owners and lessees of sleeping, dining 13 and cafe cars, airplanes and boats, in accordance with the 14 provisions of this Act, and to suspend or revoke such 15 licenses upon the State commission's determination, upon 16 notice after hearing, that a licensee has violated any 17 provision of this Act or any rule or regulation issued 18 pursuant thereto and in effect for 30 days prior to such 19 violation. 20 In lieu of suspending or revoking a license, the 21 commission may impose a fine, upon the State commission's 22 determination and notice after hearing, that a licensee has 23 violated any provision of this Act or any rule or regulation 24 issued pursuant thereto and in effect for 30 days prior to 25 such violation. The fine imposed under this paragraph may 26 not exceed $500 for each violation. Each day that the 27 activity, which gave rise to the original fine, continues is 28 a separate violation. The maximum fine that may be levied 29 against any licensee, for the period of the license, shall 30 not exceed $20,000. 31 (2) To adopt such rules and regulations consistent with 32 the provisions of this Act which shall be necessary to carry 33 on its functions and duties to the end that the health, -22- LRB9003963LDdv 1 safety and welfare of the People of the State of Illinois 2 shall be protected and temperance in the consumption of 3 alcoholic liquors shall be fostered and promoted and to 4 distribute copies of such rules and regulations to all 5 licensees affected thereby. 6 (3) To call upon other administrative departments of the 7 State, county and municipal governments, county and city 8 police departments and upon prosecuting officers for such 9 information and assistance as it deems necessary in the 10 performance of its duties. 11 (4) To recommend to local commissioners rules and 12 regulations, not inconsistent with the law, for the 13 distribution and sale of alcoholic liquors throughout the 14 State. 15 (5) To inspect, or cause to be inspected, any premises 16 where alcoholic liquors are manufactured, distributed or 17 sold. 18 (6) To hear and determine appeals from orders of a local 19 commission in accordance with the provisions of this Act, as 20 hereinafter set forth. Hearings under this subsection shall 21 be held in Springfield or Chicago, at whichever location is 22 the more convenient for the majority of persons who are 23 parties to the hearing. 24 (7) The commission shall establish uniform systems of 25 accounts to be kept by all retail licensees having more than 26 4 employees, and for this purpose the commission may classify 27 all retail licensees having more than 4 employees and 28 establish a uniform system of accounts for each class and 29 prescribe the manner in which such accounts shall be kept. 30 The commission may also prescribe the forms of accounts to be 31 kept by all retail licensees having more than 4 employees, 32 including but not limited to accounts of earnings and 33 expenses and any distribution, payment, or other distribution 34 of earnings or assets, and any other forms, records and -23- LRB9003963LDdv 1 memoranda which in the judgment of the commission may be 2 necessary or appropriate to carry out any of the provisions 3 of this Act, including but not limited to such forms, records 4 and memoranda as will readily and accurately disclose at all 5 times the beneficial ownership of such retail licensed 6 business. The accounts, forms, records and memoranda shall 7 be available at all reasonable times for inspection by 8 authorized representatives of the State commission or by any 9 local liquor control commissioner or his or her authorized 10 representative. The commission, may, from time to time, 11 alter, amend or repeal, in whole or in part, any uniform 12 system of accounts, or the form and manner of keeping 13 accounts. 14 (8) In the conduct of any hearing authorized to be held 15 by the commission, to examine, or cause to be examined, under 16 oath, any licensee, and to examine or cause to be examined 17 the books and records of such licensee; to hear testimony and 18 take proof material for its information in the discharge of 19 its duties hereunder; to administer or cause to be 20 administered oaths; and for any such purpose to issue 21 subpoena or subpoenas to require the attendance of witnesses 22 and the production of books, which shall be effective in any 23 part of this State. 24 Any Circuit Court may by order duly entered, require the 25 attendance of witnesses and the production of relevant books 26 subpoenaed by the State commission and the court may compel 27 obedience to its order by proceedings for contempt. 28 (9) To investigate the administration of laws in 29 relation to alcoholic liquors in this and other states and 30 any foreign countries, and to recommend from time to time to 31 the Governor and through him or her to the legislature of 32 this State, such amendments to this Act, if any, as it may 33 think desirable and as will serve to further the general 34 broad purposes contained in Section 1-2 hereof. -24- LRB9003963LDdv 1 (10) To adopt such rules and regulations consistent with 2 the provisions of this Act which shall be necessary for the 3 control, sale or disposition of alcoholic liquor damaged as a 4 result of an accident, wreck, flood, fire or other similar 5 occurrence. 6 (11) To develop industry educational programs related to 7 responsible serving and selling, particularly in the areas of 8 overserving consumers and illegal underage purchasing and 9 consumption of alcoholic beverages. 10 (12) To develop and maintain a repository of license and 11 regulatory information. 12 (13) (Blank).On or before January 15, 1994, the13Commission shall issue a written report to the Governor and14General Assembly that is to be based on a comprehensive study15of the impact on and implications for the State of Illinois16of Section 1926 of the Federal ADAMHA Reorganization Act of171992 (Public Law 102-321). This study shall address the18extent to which Illinois currently complies with the19provisions of P.L. 102-321 and the rules promulgated pursuant20thereto.21As part of its report, the Commission shall provide the22following essential information:23(i) the number of retail distributors of tobacco24products, by type and geographic area, in the State;25(ii) the number of reported citations and26successful convictions, categorized by type and location27of retail distributor, for violation of the Sale of28Tobacco to Minors Act and the Smokeless Tobacco29Limitation Act;30(iii) the extent and nature of organized31educational and governmental activities that are intended32to promote, encourage or otherwise secure compliance with33any Illinois laws that prohibit the sale or distribution34of tobacco products to minors; and-25- LRB9003963LDdv 1(iv) the level of access and availability of2tobacco products to individuals under the age of 18.3To obtain the data necessary to comply with the4provisions of P.L. 102-321 and the requirements of this5report, the Commission shall conduct random, unannounced6inspections of a geographically and scientifically7representative sample of the State's retail tobacco8distributors.9The Commission shall consult with the Department of10Public Health, the Department of Alcoholism and Substance11Abuse, the Illinois State Police and any other executive12branch agency, and private organizations that may have13information relevant to this report.14 (14) The Commission shall receive and issue licenses to 15 persons engaged in the retail sales of tobacco products over 16 the counter or through any vending machine, as specified in 17 Section 40 of the Illinois Underage Purchase, Possession, and 18 Sales Prevention Act of 1997. The Commission shall enforce 19 the Illinois Underage Purchase Possession, and Sales 20 Prevention Act of 1997, conduct the inspections described in 21 Section 50 of that Act, and submit the report required by 22 Section 1926 of the federal Public Health Service Act (42 23 U.S.C. 300x-26). The Commission shall not promulgate any 24 rules with respect to the Illinois Underage Purchase, 25 Possession, and Sales Prevention Act of 1997. 26 Notwithstanding any other provision of this Act, and except 27 as specifically provided in Sections 40 and 45 of the 28 Illinois Underage Purchase, Possession, and Sales Prevention 29 Act of 1997, the Commission shall not exercise any authority 30 with respect to the licensing of sellers of tobacco products, 31 the sale or distribution of such products, or the inspection 32 of establishments that sell such products at retail. 33 (Source: P.A. 88-91; 88-418; 88-670, eff. 12-2-94.) 34 (Text of Section after amendment by P.A. 89-507) -26- LRB9003963LDdv 1 Sec. 3-12. The State commission shall have the following 2 powers, functions and duties: 3 (1) To receive applications and to issue licenses to 4 manufacturers, foreign importers, importing distributors, 5 distributors, non-resident dealers, on premise consumption 6 retailers, off premise sale retailers, special event retailer 7 licensees, special use permit licenses, auction liquor 8 licenses, brew pubs, caterer retailers, non-beverage users, 9 railroads, including owners and lessees of sleeping, dining 10 and cafe cars, airplanes and boats, in accordance with the 11 provisions of this Act, and to suspend or revoke such 12 licenses upon the State commission's determination, upon 13 notice after hearing, that a licensee has violated any 14 provision of this Act or any rule or regulation issued 15 pursuant thereto and in effect for 30 days prior to such 16 violation. 17 In lieu of suspending or revoking a license, the 18 commission may impose a fine, upon the State commission's 19 determination and notice after hearing, that a licensee has 20 violated any provision of this Act or any rule or regulation 21 issued pursuant thereto and in effect for 30 days prior to 22 such violation. The fine imposed under this paragraph may 23 not exceed $500 for each violation. Each day that the 24 activity, which gave rise to the original fine, continues is 25 a separate violation. The maximum fine that may be levied 26 against any licensee, for the period of the license, shall 27 not exceed $20,000. 28 (2) To adopt such rules and regulations consistent with 29 the provisions of this Act which shall be necessary to carry 30 on its functions and duties to the end that the health, 31 safety and welfare of the People of the State of Illinois 32 shall be protected and temperance in the consumption of 33 alcoholic liquors shall be fostered and promoted and to 34 distribute copies of such rules and regulations to all -27- LRB9003963LDdv 1 licensees affected thereby. 2 (3) To call upon other administrative departments of the 3 State, county and municipal governments, county and city 4 police departments and upon prosecuting officers for such 5 information and assistance as it deems necessary in the 6 performance of its duties. 7 (4) To recommend to local commissioners rules and 8 regulations, not inconsistent with the law, for the 9 distribution and sale of alcoholic liquors throughout the 10 State. 11 (5) To inspect, or cause to be inspected, any premises 12 where alcoholic liquors are manufactured, distributed or 13 sold. 14 (6) To hear and determine appeals from orders of a local 15 commission in accordance with the provisions of this Act, as 16 hereinafter set forth. Hearings under this subsection shall 17 be held in Springfield or Chicago, at whichever location is 18 the more convenient for the majority of persons who are 19 parties to the hearing. 20 (7) The commission shall establish uniform systems of 21 accounts to be kept by all retail licensees having more than 22 4 employees, and for this purpose the commission may classify 23 all retail licensees having more than 4 employees and 24 establish a uniform system of accounts for each class and 25 prescribe the manner in which such accounts shall be kept. 26 The commission may also prescribe the forms of accounts to be 27 kept by all retail licensees having more than 4 employees, 28 including but not limited to accounts of earnings and 29 expenses and any distribution, payment, or other distribution 30 of earnings or assets, and any other forms, records and 31 memoranda which in the judgment of the commission may be 32 necessary or appropriate to carry out any of the provisions 33 of this Act, including but not limited to such forms, records 34 and memoranda as will readily and accurately disclose at all -28- LRB9003963LDdv 1 times the beneficial ownership of such retail licensed 2 business. The accounts, forms, records and memoranda shall 3 be available at all reasonable times for inspection by 4 authorized representatives of the State commission or by any 5 local liquor control commissioner or his or her authorized 6 representative. The commission, may, from time to time, 7 alter, amend or repeal, in whole or in part, any uniform 8 system of accounts, or the form and manner of keeping 9 accounts. 10 (8) In the conduct of any hearing authorized to be held 11 by the commission, to examine, or cause to be examined, under 12 oath, any licensee, and to examine or cause to be examined 13 the books and records of such licensee; to hear testimony and 14 take proof material for its information in the discharge of 15 its duties hereunder; to administer or cause to be 16 administered oaths; and for any such purpose to issue 17 subpoena or subpoenas to require the attendance of witnesses 18 and the production of books, which shall be effective in any 19 part of this State. 20 Any Circuit Court may by order duly entered, require the 21 attendance of witnesses and the production of relevant books 22 subpoenaed by the State commission and the court may compel 23 obedience to its order by proceedings for contempt. 24 (9) To investigate the administration of laws in 25 relation to alcoholic liquors in this and other states and 26 any foreign countries, and to recommend from time to time to 27 the Governor and through him or her to the legislature of 28 this State, such amendments to this Act, if any, as it may 29 think desirable and as will serve to further the general 30 broad purposes contained in Section 1-2 hereof. 31 (10) To adopt such rules and regulations consistent with 32 the provisions of this Act which shall be necessary for the 33 control, sale or disposition of alcoholic liquor damaged as a 34 result of an accident, wreck, flood, fire or other similar -29- LRB9003963LDdv 1 occurrence. 2 (11) To develop industry educational programs related to 3 responsible serving and selling, particularly in the areas of 4 overserving consumers and illegal underage purchasing and 5 consumption of alcoholic beverages. 6 (12) To develop and maintain a repository of license and 7 regulatory information. 8 (13) (Blank).On or before January 15, 1994, the9Commission shall issue a written report to the Governor and10General Assembly that is to be based on a comprehensive study11of the impact on and implications for the State of Illinois12of Section 1926 of the Federal ADAMHA Reorganization Act of131992 (Public Law 102-321). This study shall address the14extent to which Illinois currently complies with the15provisions of P.L. 102-321 and the rules promulgated pursuant16thereto.17As part of its report, the Commission shall provide the18following essential information:19(i) the number of retail distributors of tobacco20products, by type and geographic area, in the State;21(ii) the number of reported citations and22successful convictions, categorized by type and location23of retail distributor, for violation of the Sale of24Tobacco to Minors Act and the Smokeless Tobacco25Limitation Act;26(iii) the extent and nature of organized27educational and governmental activities that are intended28to promote, encourage or otherwise secure compliance with29any Illinois laws that prohibit the sale or distribution30of tobacco products to minors; and31(iv) the level of access and availability of32tobacco products to individuals under the age of 18.33To obtain the data necessary to comply with the34provisions of P.L. 102-321 and the requirements of this-30- LRB9003963LDdv 1report, the Commission shall conduct random, unannounced2inspections of a geographically and scientifically3representative sample of the State's retail tobacco4distributors.5The Commission shall consult with the Department of6Public Health, the Department of Human Services, the Illinois7State Police and any other executive branch agency, and8private organizations that may have information relevant to9this report.10 (14) The Commission shall receive and issue licenses to 11 persons engaged in the retail sales of tobacco products over 12 the counter or through any vending machine, as specified in 13 Section 40 of the Illinois Underage Purchase, Possession, and 14 Sales Prevention Act of 1997. The Commission shall enforce 15 the Illinois Underage Purchase Possession, and Sales 16 Prevention Act of 1997, conduct the inspections described in 17 Section 50 of such Act, and submit the report required by 18 Section 1926 of the federal Public Health Service Act (42 19 U.S.C. 300x-26). The Commission shall not promulgate any 20 rules with respect to the Illinois Underage Purchase, 21 Possession, and Sales Prevention Act of 1997. 22 Notwithstanding any other provision of this Act, and except 23 as specifically provided in Sections 40 and 45 of the 24 Illinois Underage Purchase, Possession, and Sales Prevention 25 Act of 1997, the Commission shall not exercise any authority 26 with respect to the licensing of sellers of tobacco products, 27 the sale or distribution of such products, or the inspection 28 of establishments that sell such products at retail. 29 (Source: P.A. 88-91; 88-418; 88-670, eff. 12-2-94; 89-507, 30 eff. 7-1-97.) 31 (720 ILCS 675/Act rep.) 32 Section 300. The Sale of Tobacco to Minors Act is 33 repealed. -31- LRB9003963LDdv 1 (720 ILCS 680/Act rep.) 2 Section 400. The Smokeless Tobacco Limitation Act is 3 repealed. 4 Section 995. No acceleration or delay. Where this Act 5 makes changes in a statute that is represented in this Act by 6 text that is not yet or no longer in effect (for example, a 7 Section represented by multiple versions), the use of that 8 text does not accelerate or delay the taking effect of (i) 9 the changes made by this Act or (ii) provisions derived from 10 any other Public Act. 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.