Bill Amendment: IL SB0668 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: REGULATION-TECH
Status: 2021-01-13 - Session Sine Die [SB0668 Detail]
Download: Illinois-2019-SB0668-Senate_Amendment_002.html
Bill Title: REGULATION-TECH
Status: 2021-01-13 - Session Sine Die [SB0668 Detail]
Download: Illinois-2019-SB0668-Senate_Amendment_002.html
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| 1 | AMENDMENT TO SENATE BILL 668
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| 2 | AMENDMENT NO. ______. Amend Senate Bill 668 by replacing | ||||||
| 3 | everything after the enacting clause with the following:
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| 4 | "Section 1. Short title. This Act may be cited as the | ||||||
| 5 | Flavored Electronic Cigarette Ban Act.
| ||||||
| 6 | Section 5. Definitions. In this Act: | ||||||
| 7 | "Characterizing flavor" means a distinguishable taste or | ||||||
| 8 | aroma, other than the taste or aroma of tobacco, imparted by an | ||||||
| 9 | electronic cigarette or related flavor product, or any | ||||||
| 10 | by-product produced by the electronic cigarette or related | ||||||
| 11 | flavor product. "Characterizing flavor" includes, but is not | ||||||
| 12 | limited to, tastes or aromas relating to any fruit, chocolate, | ||||||
| 13 | vanilla, honey, candy, cocoa, dessert, alcoholic beverage, | ||||||
| 14 | mint, menthol, wintergreen, herb, or spice. An electronic | ||||||
| 15 | cigarette or related flavor product does not have a | ||||||
| 16 | characterizing flavor solely because of the use of additives or | ||||||
| |||||||
| |||||||
| 1 | flavorings or the provision of ingredient information. | ||||||
| 2 | "Constituent" means any ingredient, substance, chemical, | ||||||
| 3 | or compound, other than water, that is added to an electronic | ||||||
| 4 | cigarette or related flavor product. | ||||||
| 5 | "Department" means the Department of Human Services. | ||||||
| 6 | "Distinguishable" means perceivable by either the sense of | ||||||
| 7 | smell or taste.
| ||||||
| 8 | "Distributor" means a person who sells, offers for sale, or | ||||||
| 9 | transfers any tobacco, tobacco products, flavored electronic | ||||||
| 10 | cigarette, or related flavor product for resale and not for use | ||||||
| 11 | or consumption. "Distributor" includes a distributor as | ||||||
| 12 | defined in Section 1 of the Cigarette Tax Act, Section 1 of the | ||||||
| 13 | Cigarette Use Tax Act, and Section 10-5 of the Tobacco Products | ||||||
| 14 | Tax Act of 1995. | ||||||
| 15 | "Electronic cigarette" means: | ||||||
| 16 | (1) any device that employs a battery or other | ||||||
| 17 | mechanism to heat a solution or substance to produce a | ||||||
| 18 | vapor or aerosol intended for inhalation; | ||||||
| 19 | (2) any cartridge or container of a solution or | ||||||
| 20 | substance intended to be used with or in the device or to | ||||||
| 21 | refill the device; or | ||||||
| 22 | (3) any solution or substance, whether or not it | ||||||
| 23 | contains nicotine, intended for use in the device. | ||||||
| 24 | "Electronic cigarette" includes, but is not limited to, any | ||||||
| 25 | electronic nicotine delivery system, electronic cigar, | ||||||
| 26 | electronic cigarillo, electronic pipe, electronic hookah, vape | ||||||
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| |||||||
| 1 | pen, or similar product or device, and any components or parts | ||||||
| 2 | that can be used to build the product or device. "Electronic | ||||||
| 3 | cigarette" does not include: any smokeless nicotine product; a | ||||||
| 4 | cigarette, as defined in Section 1 of the Cigarette Tax Act; | ||||||
| 5 | any tobacco product as defined in this Section; any product | ||||||
| 6 | approved by the United States Food and Drug Administration for | ||||||
| 7 | sale as a tobacco cessation product or a tobacco dependence | ||||||
| 8 | product, or for other medical purposes that is marketed and | ||||||
| 9 | sold solely for that approved purpose; any asthma inhaler | ||||||
| 10 | prescribed by a physician for that condition that is marketed | ||||||
| 11 | and sold solely for that approved purpose; any therapeutic | ||||||
| 12 | product approved for use under the Compassionate Use of Medical | ||||||
| 13 | Cannabis Program Act; or cannabis as defined in Section 1-10 of | ||||||
| 14 | the Cannabis Regulation and Tax Act. | ||||||
| 15 | "Flavored electronic cigarette" means any electronic | ||||||
| 16 | cigarette containing a constituent that imparts a | ||||||
| 17 | characterizing flavor. | ||||||
| 18 | "Labeling" means written, printed, pictorial, or graphic | ||||||
| 19 | matter upon any electronic cigarette or related flavor product | ||||||
| 20 | or any packaging of an electronic cigarette or related flavor | ||||||
| 21 | product. | ||||||
| 22 | "Packaging" means a pack, box, carton, or container of any | ||||||
| 23 | kind or, if no other container, any wrapping or cellophane in | ||||||
| 24 | which an electronic cigarette or related flavor product is sold | ||||||
| 25 | or offered for sale to a consumer. | ||||||
| 26 | "Related flavor product" means any flavor product intended | ||||||
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| 1 | for or traditionally used with tobacco, including papers, | ||||||
| 2 | wraps, tubes, or filters. A product of a type which has in the | ||||||
| 3 | past been used in conjunction with tobacco or nicotine use | ||||||
| 4 | shall be deemed a "related flavor product" regardless of any | ||||||
| 5 | labeling or descriptive language on the product stating that | ||||||
| 6 | the product is not intended for use with tobacco, is for | ||||||
| 7 | non-tobacco use only, or other similar language. | ||||||
| 8 | "Retailer" means a person who engages in this State in the | ||||||
| 9 | sale, or offering for sale, of flavored electronic cigarettes | ||||||
| 10 | or related flavor products for use or consumption and not for | ||||||
| 11 | resale in any form. "Retailer" includes a retailer as that term | ||||||
| 12 | is defined in Section 1 of the Cigarette Tax Act and Section | ||||||
| 13 | 10-5 of the Tobacco Products Tax Act of 1995. | ||||||
| 14 | "Secondary distributor" means a secondary distributor as | ||||||
| 15 | that term is defined in Section 1 of the Cigarette Tax Act or | ||||||
| 16 | Section 1 of the Cigarette Use Tax Act. | ||||||
| 17 | "Smokeless nicotine product" means nicotine that is in the | ||||||
| 18 | form of a solid, gel, gum, or paste that is intended for human | ||||||
| 19 | consumption, placement in the oral or nasal cavity, or | ||||||
| 20 | absorption into the human body by any other means. "Smokeless | ||||||
| 21 | nicotine product" does not include any tobacco product or | ||||||
| 22 | cigarette. | ||||||
| 23 | "Tobacco product" means any product containing or made from | ||||||
| 24 | tobacco that is intended for human consumption, whether smoked, | ||||||
| 25 | heated, chewed, absorbed, dissolved, inhaled, snorted, | ||||||
| 26 | sniffed, or ingested by any other means, including, but not | ||||||
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| |||||||
| 1 | limited to, cigarettes, cigars, little cigars, chewing | ||||||
| 2 | tobacco, pipe tobacco, snuff, snus, and any other smokeless | ||||||
| 3 | tobacco product which contains tobacco that is finely cut, | ||||||
| 4 | ground, powdered, or leaf and intended to be placed in the oral | ||||||
| 5 | cavity. "Tobacco product" includes any component, part, or | ||||||
| 6 | accessory of a tobacco product, whether or not sold separately. | ||||||
| 7 | "Tobacco product" does not include an electronic cigarette, a | ||||||
| 8 | smokeless nicotine product, an alternative nicotine product, | ||||||
| 9 | or any product that has been approved by the United States Food | ||||||
| 10 | and Drug Administration for sale as a tobacco cessation | ||||||
| 11 | product, as a tobacco dependence product, or for other medical | ||||||
| 12 | purposes, and is being marketed and sold solely for that | ||||||
| 13 | approved purpose.
| ||||||
| 14 | Section 10. Prohibitions. | ||||||
| 15 | (a) A retailer, or any of a retailer's agents or employees, | ||||||
| 16 | may not sell, offer for sale, or possess with the intent to | ||||||
| 17 | sell or offer for sale a flavored electronic cigarette or | ||||||
| 18 | related flavor product. | ||||||
| 19 | (b) A distributor or secondary distributor may not sell, | ||||||
| 20 | offer for sale, or possess with intent to sell or offer for | ||||||
| 21 | sale a flavored electronic cigarette or related flavor product | ||||||
| 22 | in this State. There is a rebuttable presumption that a | ||||||
| 23 | distributor or secondary distributor possesses a flavored | ||||||
| 24 | electronic cigarette or related flavor product with the intent | ||||||
| 25 | to sell in the State if the distributor or secondary | ||||||
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| 1 | distributor cannot provide, upon request, evidence that the | ||||||
| 2 | product is intended for order or purchase from without the | ||||||
| 3 | State. | ||||||
| 4 | (c) There is a rebuttable presumption that an electronic | ||||||
| 5 | cigarette or product is a flavored electronic cigarette or | ||||||
| 6 | related flavor product if a manufacturer or any of a | ||||||
| 7 | manufacturer's agents or employees, in the course of their | ||||||
| 8 | agency or employment, has made a statement or claim directed to | ||||||
| 9 | consumers or to the public that the electronic cigarette or | ||||||
| 10 | related flavor product has or produces a characterizing flavor, | ||||||
| 11 | including, but not limited to, text, color, or images on the | ||||||
| 12 | product's labeling or packaging that are used to explicitly or | ||||||
| 13 | implicitly communicate or suggest that the electronic | ||||||
| 14 | cigarette or related flavor product has a characterizing | ||||||
| 15 | flavor. A product with labeling or packaging that suggests the | ||||||
| 16 | presence of a characterizing flavor is presumed to be a | ||||||
| 17 | flavored electronic cigarette or related flavor product. | ||||||
| 18 | (d) This Section does not apply to any flavored electronic | ||||||
| 19 | cigarette that has obtained a tobacco product clearance order | ||||||
| 20 | pursuant to Section 387j of Title 21 of the United States Code. | ||||||
| 21 | (e) A distributor, secondary distributor, or retailer, or | ||||||
| 22 | any of a retailer's agents or employees, shall not fulfill an | ||||||
| 23 | order for, or allow a flavored electronic cigarette or related | ||||||
| 24 | flavor product to be purchased by, or shipped to, any person in | ||||||
| 25 | this State. As used in this subsection, "ordered or purchased" | ||||||
| 26 | includes: | ||||||
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| |||||||
| 1 | (1) a consumer submitting an order for sale by means | ||||||
| 2 | of: | ||||||
| 3 | (A) a telephone or other method of voice | ||||||
| 4 | transmission; | ||||||
| 5 | (B) the mail; or | ||||||
| 6 | (C) the Internet or other online service; or | ||||||
| 7 | (2) situations where the seller is otherwise not in the | ||||||
| 8 | physical presence of the buyer when the request for | ||||||
| 9 | purchase or order is made. | ||||||
| 10 | This subsection (e) applies regardless of whether the | ||||||
| 11 | retailer is located within the State or not.
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| 12 | Section 15. Administrative rules; enforcement.
The | ||||||
| 13 | Department shall enforce this Act and may adopt rules or | ||||||
| 14 | guidelines for the implementation and enforcement of this Act.
| ||||||
| 15 | Section 20. Violations.
Upon a decision by the Department | ||||||
| 16 | after notice and hearing that a distributor, secondary | ||||||
| 17 | distributor, or retailer, or any of a retailer's agents or | ||||||
| 18 | employees, has engaged in any conduct that violates this Act, | ||||||
| 19 | the Department of Revenue may suspend: that distributor's | ||||||
| 20 | license under Section 6 of the Cigarette Tax Act, Section 6 of | ||||||
| 21 | the Cigarette Use Tax Act, or Section 10-25 of the Tobacco | ||||||
| 22 | Products Tax Act of 1995; that secondary distributor's license | ||||||
| 23 | under Section 6 of the Cigarette Tax Act or Section 6 of the | ||||||
| 24 | Cigarette Use Tax Act; or that retailer's license under Section | ||||||
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| |||||||
| 1 | 6 of the Cigarette Tax Act or Section 10-25 of the Tobacco | ||||||
| 2 | Products Tax Act of 1995. Any suspension shall be preceded by a | ||||||
| 3 | notice from the Department of Revenue of the initial | ||||||
| 4 | determination or violation. A license shall be suspended 3 days | ||||||
| 5 | for a first violation, 7 days for a second violation, and 30 | ||||||
| 6 | days for a third and each subsequent violation. | ||||||
| 7 | The Department of Revenue shall impose a civil penalty not | ||||||
| 8 | to exceed $5,000 on any person engaged in the business of | ||||||
| 9 | selling flavored electronic cigarettes or related flavor | ||||||
| 10 | products who ships or causes to be shipped any flavored | ||||||
| 11 | electronic cigarettes or related flavor products to any person | ||||||
| 12 | in this State in violation of subsection (e) of Section 10. | ||||||
| 13 | Civil penalties imposed and collected by the Department under | ||||||
| 14 | this subsection shall be deposited into the Tax Compliance and | ||||||
| 15 | Administration Fund.
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| 16 | Section 25. No conflict with federal or State law. Nothing | ||||||
| 17 | in this Act shall be interpreted or applied to create any | ||||||
| 18 | requirement, power, or duty that is preempted by federal or | ||||||
| 19 | State law.
| ||||||
| 20 | Section 90. The Cigarette Tax Act is amended by changing | ||||||
| 21 | Section 6 as follows:
| ||||||
| 22 | (35 ILCS 130/6) (from Ch. 120, par. 453.6)
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| 23 | Sec. 6. Revocation, cancellation, or suspension of | ||||||
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| |||||||
| 1 | license. The Department may, after notice and hearing as | ||||||
| 2 | provided for by this
Act, revoke, cancel or suspend the license | ||||||
| 3 | of any distributor, secondary distributor, or retailer for the
| ||||||
| 4 | violation of any provision of this Act, or for noncompliance | ||||||
| 5 | with any
provision herein contained, or for any noncompliance | ||||||
| 6 | with any lawful rule
or regulation promulgated by the | ||||||
| 7 | Department under Section 8 of this Act, or
because the licensee | ||||||
| 8 | is determined to be ineligible for a distributor's
license for | ||||||
| 9 | any one or more of the reasons provided for in Section 4 of
| ||||||
| 10 | this Act, or because the licensee is determined to be | ||||||
| 11 | ineligible for a secondary distributor's license for any one or | ||||||
| 12 | more of the reasons provided for in Section 4c of this Act, or | ||||||
| 13 | because the licensee is determined to be ineligible for a | ||||||
| 14 | retailer's license for any one or more of the reasons provided | ||||||
| 15 | for in Section 4g of this Act. However, no such license shall | ||||||
| 16 | be revoked, cancelled or
suspended, except after a hearing by | ||||||
| 17 | the Department with notice to the
distributor, secondary | ||||||
| 18 | distributor, or retailer, as aforesaid, and affording such | ||||||
| 19 | distributor, secondary distributor, or retailer a reasonable
| ||||||
| 20 | opportunity to appear and defend, and any distributor, | ||||||
| 21 | secondary distributor, or retailer aggrieved by any
decision of | ||||||
| 22 | the Department with respect thereto may have the determination
| ||||||
| 23 | of the Department judicially reviewed, as herein provided.
| ||||||
| 24 | The Department may revoke, cancel, or suspend the license | ||||||
| 25 | of any
distributor for a violation of the Tobacco Product | ||||||
| 26 | Manufacturers' Escrow
Enforcement Act as provided in Section 30 | ||||||
| |||||||
| |||||||
| 1 | of that Act. The Department may revoke, cancel, or suspend the | ||||||
| 2 | license of any secondary distributor for a violation of | ||||||
| 3 | subsection (e) of Section 15 of the Tobacco Product | ||||||
| 4 | Manufacturers' Escrow Enforcement Act.
| ||||||
| 5 | The Department may suspend the license of any distributor, | ||||||
| 6 | secondary distributor, or retailer for a violation of the | ||||||
| 7 | Flavored Electronic Cigarette Ban Act as provided in Section 20 | ||||||
| 8 | of that Act. | ||||||
| 9 | If the retailer has a training program that facilitates | ||||||
| 10 | compliance with minimum-age tobacco laws, the Department shall | ||||||
| 11 | suspend for 3 days the license of that retailer for a fourth or | ||||||
| 12 | subsequent violation of the Prevention of Tobacco Use by | ||||||
| 13 | Persons under 21 Years of Age and Sale and Distribution of | ||||||
| 14 | Tobacco Products Act, as provided in subsection (a) of Section | ||||||
| 15 | 2 of that Act. For the purposes of this Section, any violation | ||||||
| 16 | of subsection (a) of Section 2 of the Prevention of Tobacco Use | ||||||
| 17 | by Persons under 21 Years of Age and Sale and Distribution of | ||||||
| 18 | Tobacco Products Act occurring at the retailer's licensed | ||||||
| 19 | location during a 24-month period shall be counted as a | ||||||
| 20 | violation against the retailer. | ||||||
| 21 | If the retailer does not have a training program that | ||||||
| 22 | facilitates compliance with minimum-age tobacco laws, the | ||||||
| 23 | Department shall suspend for 3 days the license of that | ||||||
| 24 | retailer for a second violation of the Prevention of Tobacco | ||||||
| 25 | Use by Persons under 21 Years of Age and Sale and Distribution | ||||||
| 26 | of Tobacco Products Act, as provided in subsection (a-5) of | ||||||
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| 1 | Section 2 of that Act. | ||||||
| 2 | If the retailer does not have a training program that | ||||||
| 3 | facilitates compliance with minimum-age tobacco laws, the | ||||||
| 4 | Department shall suspend for 7 days the license of that | ||||||
| 5 | retailer for a third violation of the Prevention of Tobacco Use | ||||||
| 6 | by Persons under 21 Years of Age and Sale and Distribution of | ||||||
| 7 | Tobacco Products Act, as provided in subsection (a-5) of | ||||||
| 8 | Section 2 of that Act. | ||||||
| 9 | If the retailer does not have a training program that | ||||||
| 10 | facilitates compliance with minimum-age tobacco laws, the | ||||||
| 11 | Department shall suspend for 30 days the license of a retailer | ||||||
| 12 | for a fourth or subsequent violation of the Prevention of | ||||||
| 13 | Tobacco Use by Persons under 21 Years of Age and Sale and | ||||||
| 14 | Distribution of Tobacco Products Act, as provided in subsection | ||||||
| 15 | (a-5) of Section 2 of that Act. | ||||||
| 16 | A training program that facilitates compliance with | ||||||
| 17 | minimum-age tobacco laws must include at least the following | ||||||
| 18 | elements: (i) it must explain that only individuals displaying | ||||||
| 19 | valid identification demonstrating that they are 21 years of | ||||||
| 20 | age or older shall be eligible to purchase cigarettes or | ||||||
| 21 | tobacco products and (ii) it must explain where a clerk can | ||||||
| 22 | check identification for a date of birth. The training may be | ||||||
| 23 | conducted electronically. Each retailer that has a training | ||||||
| 24 | program shall require each employee who completes the training | ||||||
| 25 | program to sign a form attesting that the employee has received | ||||||
| 26 | and completed tobacco training. The form shall be kept in the | ||||||
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| |||||||
| 1 | employee's file and may be used to provide proof of training. | ||||||
| 2 | Any distributor, secondary distributor, or retailer | ||||||
| 3 | aggrieved by any decision of the Department under this
Section
| ||||||
| 4 | may, within 20 days after notice of the decision, protest and | ||||||
| 5 | request a
hearing. Upon receiving a request for a hearing, the | ||||||
| 6 | Department shall give
notice in writing to the distributor, | ||||||
| 7 | secondary distributor, or retailer requesting the hearing that | ||||||
| 8 | contains a
statement of the charges preferred against the | ||||||
| 9 | distributor, secondary distributor, or retailer and that | ||||||
| 10 | states the
time and place fixed for the hearing. The Department | ||||||
| 11 | shall hold the hearing in
conformity with the provisions of | ||||||
| 12 | this Act and then issue its final
administrative decision in | ||||||
| 13 | the matter to the distributor, secondary distributor, or | ||||||
| 14 | retailer. In the absence of a
protest and request for a hearing | ||||||
| 15 | within 20 days, the Department's decision
shall become final | ||||||
| 16 | without any further determination being made or notice
given.
| ||||||
| 17 | No license so revoked, as aforesaid, shall be reissued to | ||||||
| 18 | any such
distributor, secondary distributor, or retailer | ||||||
| 19 | within a period of 6 months after the date of the final
| ||||||
| 20 | determination of such revocation. No such license shall be | ||||||
| 21 | reissued at all
so long as the person who would receive the | ||||||
| 22 | license is ineligible to
receive a distributor's license under | ||||||
| 23 | this Act for any one or more of the
reasons provided for in | ||||||
| 24 | Section 4 of this Act, is ineligible to receive a secondary | ||||||
| 25 | distributor's license under this Act for any one or more of the | ||||||
| 26 | reasons provided for in Section 4c of this Act, or is | ||||||
| |||||||
| |||||||
| 1 | determined to be ineligible for a retailer's license under the | ||||||
| 2 | Act for any one or more of the reasons provided for in Section | ||||||
| 3 | 4g of this Act.
| ||||||
| 4 | The Department upon complaint filed in the circuit
court | ||||||
| 5 | may by injunction
restrain any person who fails, or refuses, to | ||||||
| 6 | comply with any of the
provisions of this Act from acting as a | ||||||
| 7 | distributor, secondary distributor, or retailer of cigarettes | ||||||
| 8 | in this
State.
| ||||||
| 9 | (Source: P.A. 101-2, eff. 7-1-19.)
| ||||||
| 10 | Section 95. The Cigarette Use Tax Act is amended by | ||||||
| 11 | changing Section 6 as follows:
| ||||||
| 12 | (35 ILCS 135/6) (from Ch. 120, par. 453.36)
| ||||||
| 13 | Sec. 6. Revocation, cancellation, or suspension of | ||||||
| 14 | license. The Department may, after notice and hearing as | ||||||
| 15 | provided for by this
Act, revoke, cancel or suspend the license | ||||||
| 16 | of any distributor or secondary distributor for the
violation | ||||||
| 17 | of any provision of this Act, or for non-compliance with any
| ||||||
| 18 | provision herein contained, or for any non-compliance with any | ||||||
| 19 | lawful rule
or regulation promulgated by the Department under | ||||||
| 20 | Section 21 of this Act,
or because the licensee is determined | ||||||
| 21 | to be ineligible for a distributor's
license for any one or | ||||||
| 22 | more of the reasons provided for in Section 4 of
this Act, or | ||||||
| 23 | because the licensee is determined to be ineligible for a | ||||||
| 24 | secondary distributor's license for any one or more of the | ||||||
| |||||||
| |||||||
| 1 | reasons provided for in Section 4b or Section 7a of this Act. | ||||||
| 2 | However, no such license shall be revoked, canceled or | ||||||
| 3 | suspended,
except after a hearing by the Department with notice | ||||||
| 4 | to the distributor or secondary distributor, as
aforesaid, and | ||||||
| 5 | affording such distributor or secondary distributor a | ||||||
| 6 | reasonable opportunity to
appear and defend, and any | ||||||
| 7 | distributor or secondary distributor aggrieved by any decision | ||||||
| 8 | of the
Department with respect thereto may have the | ||||||
| 9 | determination of the
Department judicially reviewed, as herein | ||||||
| 10 | provided.
| ||||||
| 11 | The Department may revoke, cancel, or suspend the license | ||||||
| 12 | of any
distributor for a violation of the Tobacco Product | ||||||
| 13 | Manufacturers' Escrow
Enforcement Act as provided in Section 30 | ||||||
| 14 | of that Act. The Department may revoke, cancel, or suspend the | ||||||
| 15 | license of any secondary distributor for a violation of | ||||||
| 16 | subsection (e) of Section 15 of the Tobacco Product | ||||||
| 17 | Manufacturers' Escrow Enforcement Act.
| ||||||
| 18 | The Department may suspend the license of any distributor | ||||||
| 19 | or secondary distributor for a violation of the Flavored | ||||||
| 20 | Electronic Cigarette Ban Act as provided in Section 20 of that | ||||||
| 21 | Act. | ||||||
| 22 | Any distributor or secondary distributor aggrieved by any | ||||||
| 23 | decision of the Department under this
Section
may, within 20 | ||||||
| 24 | days after notice of the decision, protest and request a
| ||||||
| 25 | hearing. Upon receiving a request for a hearing, the Department | ||||||
| 26 | shall give
notice in writing to the distributor or secondary | ||||||
| |||||||
| |||||||
| 1 | distributor requesting the hearing that contains a
statement of | ||||||
| 2 | the charges preferred against the distributor or secondary | ||||||
| 3 | distributor and that states the
time and place fixed for the | ||||||
| 4 | hearing. The Department shall hold the hearing in
conformity | ||||||
| 5 | with the provisions of this Act and then issue its final
| ||||||
| 6 | administrative decision in the matter to the distributor or | ||||||
| 7 | secondary distributor. In the absence of a
protest and request | ||||||
| 8 | for a hearing within 20 days, the Department's decision
shall | ||||||
| 9 | become final without any further determination being made or | ||||||
| 10 | notice
given.
| ||||||
| 11 | No license so revoked, shall be reissued to any such
| ||||||
| 12 | distributor or secondary distributor within a period of 6 | ||||||
| 13 | months after the date of the final
determination of such | ||||||
| 14 | revocation. No such license shall be reissued at all
so long as | ||||||
| 15 | the person who would receive the license is ineligible to
| ||||||
| 16 | receive a distributor's license under this Act for any one or | ||||||
| 17 | more of the
reasons provided for in Section 4 of this Act or is | ||||||
| 18 | ineligible to receive a secondary distributor's license under | ||||||
| 19 | this Act for any one or more of the reasons provided for in | ||||||
| 20 | Section 4b and Section 7a of this Act.
| ||||||
| 21 | The Department upon complaint filed in the circuit court | ||||||
| 22 | may by injunction
restrain any person who fails, or refuses, to | ||||||
| 23 | comply with
this Act from acting as a distributor or secondary | ||||||
| 24 | distributor of cigarettes in this State.
| ||||||
| 25 | (Source: P.A. 96-1027, eff. 7-12-10.)
| ||||||
| |||||||
| |||||||
| 1 | Section 100. The Tobacco Products Tax Act of 1995 is | ||||||
| 2 | amended by changing Section 10-25 as follows:
| ||||||
| 3 | (35 ILCS 143/10-25)
| ||||||
| 4 | Sec. 10-25. License actions. | ||||||
| 5 | (a) The Department may, after notice and a hearing,
revoke, | ||||||
| 6 | cancel, or suspend the license of any distributor or retailer | ||||||
| 7 | who violates any of
the provisions of this Act, fails to keep | ||||||
| 8 | books and records as required under this Act, fails to make | ||||||
| 9 | books and records available for inspection upon demand by a | ||||||
| 10 | duly authorized employee of the Department, or violates a rule | ||||||
| 11 | or regulation of the Department for the administration and | ||||||
| 12 | enforcement of this Act. The notice shall specify the alleged | ||||||
| 13 | violation or
violations upon which the revocation, | ||||||
| 14 | cancellation, or suspension proceeding is
based.
| ||||||
| 15 | (b) The Department may revoke, cancel, or suspend the | ||||||
| 16 | license of any
distributor for a violation of the Tobacco | ||||||
| 17 | Product Manufacturers' Escrow
Enforcement Act as provided in | ||||||
| 18 | Section 20 of that Act.
| ||||||
| 19 | (b-5) The Department may suspend the license of any | ||||||
| 20 | distributor or retailer for a violation of the Flavored | ||||||
| 21 | Electronic Cigarette Ban Act as provided in Section 20 of that | ||||||
| 22 | Act. | ||||||
| 23 | (c) If the retailer has a training program that facilitates | ||||||
| 24 | compliance with minimum-age tobacco laws, the Department shall | ||||||
| 25 | suspend for 3 days the license of that retailer for a fourth or | ||||||
| |||||||
| |||||||
| 1 | subsequent violation of the Prevention of Tobacco Use by | ||||||
| 2 | Persons under 21 Years of Age and Sale and Distribution of | ||||||
| 3 | Tobacco Products Act, as provided in subsection (a) of Section | ||||||
| 4 | 2 of that Act. For the purposes of this Section, any violation | ||||||
| 5 | of subsection (a) of Section 2 of the Prevention of Tobacco Use | ||||||
| 6 | by Persons under 21 Years of Age and Sale and Distribution of | ||||||
| 7 | Tobacco Products Act occurring at the retailer's licensed | ||||||
| 8 | location, during a 24-month period, shall be counted as a | ||||||
| 9 | violation against the retailer. | ||||||
| 10 | If the retailer does not have a training program that | ||||||
| 11 | facilitates compliance with minimum-age tobacco laws, the | ||||||
| 12 | Department shall suspend for 3 days the license of that | ||||||
| 13 | retailer for a second violation of the Prevention of Tobacco | ||||||
| 14 | Use by Persons under 21 Years of Age and Sale and Distribution | ||||||
| 15 | of Tobacco Products Act, as provided in subsection (a-5) of | ||||||
| 16 | Section 2 of that Act. | ||||||
| 17 | If the retailer does not have a training program that | ||||||
| 18 | facilitates compliance with minimum-age tobacco laws, the | ||||||
| 19 | Department shall suspend for 7 days the license of that | ||||||
| 20 | retailer for a third violation of the Prevention of Tobacco Use | ||||||
| 21 | by Persons under 21 Years of Age and Sale and Distribution of | ||||||
| 22 | Tobacco Products Act, as provided in subsection (a-5) of | ||||||
| 23 | Section 2 of that Act. | ||||||
| 24 | If the retailer does not have a training program that | ||||||
| 25 | facilitates compliance with minimum-age tobacco laws, the | ||||||
| 26 | Department shall suspend for 30 days the license of a retailer | ||||||
| |||||||
| |||||||
| 1 | for a fourth or subsequent violation of the Prevention of | ||||||
| 2 | Tobacco Use by Persons under 21 Years of Age and Sale and | ||||||
| 3 | Distribution of Tobacco Products Act, as provided in subsection | ||||||
| 4 | (a-5) of Section 2 of that Act. | ||||||
| 5 | A training program that facilitates compliance with | ||||||
| 6 | minimum-age tobacco laws must include at least the following | ||||||
| 7 | elements: (i) it must explain that only individuals displaying | ||||||
| 8 | valid identification demonstrating that they are 21 years of | ||||||
| 9 | age or older shall be eligible to purchase cigarettes or | ||||||
| 10 | tobacco products and (ii) it must explain where a clerk can | ||||||
| 11 | check identification for a date of birth. The training may be | ||||||
| 12 | conducted electronically. Each retailer that has a training | ||||||
| 13 | program shall require each employee who completes the training | ||||||
| 14 | program to sign a form attesting that the employee has received | ||||||
| 15 | and completed tobacco training. The form shall be kept in the | ||||||
| 16 | employee's file and may be used to provide proof of training. | ||||||
| 17 | (d) The Department may, by application to any circuit | ||||||
| 18 | court, obtain an injunction
restraining any person who engages | ||||||
| 19 | in business as a distributor of tobacco
products without a | ||||||
| 20 | license (either because his or her license has been revoked,
| ||||||
| 21 | canceled, or suspended or because of a failure to obtain a | ||||||
| 22 | license in the first
instance) from engaging in that business | ||||||
| 23 | until that person, as if that person
were a new applicant for a | ||||||
| 24 | license, complies with all of the conditions,
restrictions, and | ||||||
| 25 | requirements of Section 10-20 of this Act and qualifies for
and | ||||||
| 26 | obtains a license. Refusal or neglect to obey the order of the | ||||||
| |||||||
| |||||||
| 1 | court may
result in punishment for contempt.
| ||||||
| 2 | (Source: P.A. 100-940, eff. 8-17-18; 101-2, eff. 7-1-19.)
| ||||||
| 3 | Section 105. The Prevention of Cigarette Sales to Persons | ||||||
| 4 | under 21 Years of Age Act is amended by changing Sections 2 and | ||||||
| 5 | 5 as follows:
| ||||||
| 6 | (720 ILCS 678/2)
| ||||||
| 7 | Sec. 2. Definitions. For the purpose of this Act: | ||||||
| 8 | "Cigarette", when used in this Act, means any roll for | ||||||
| 9 | smoking made wholly or in part of tobacco irrespective of size | ||||||
| 10 | or shape and whether or not the tobacco is flavored, | ||||||
| 11 | adulterated, or mixed with any other ingredient, and the | ||||||
| 12 | wrapper or cover of which is made of paper or any other | ||||||
| 13 | substance or material except whole leaf tobacco. | ||||||
| 14 | "Clear and conspicuous statement" means the statement is of | ||||||
| 15 | sufficient type size to be clearly readable by the recipient of | ||||||
| 16 | the communication. | ||||||
| 17 | "Consumer" means an individual who acquires or seeks to | ||||||
| 18 | acquire cigarettes, electronic cigarettes, or related flavor | ||||||
| 19 | products for personal use. | ||||||
| 20 | "Delivery sale" means any sale of cigarettes, electronic | ||||||
| 21 | cigarettes, or related flavor products to a consumer if: | ||||||
| 22 | (a) the consumer submits the order for such sale by | ||||||
| 23 | means of a telephone or other method of voice transmission, | ||||||
| 24 | the mails, or the Internet or other online service, or the | ||||||
| |||||||
| |||||||
| 1 | seller is otherwise not in the physical presence of the | ||||||
| 2 | buyer when the request for purchase or order is made; or | ||||||
| 3 | (b) the cigarettes, electronic cigarettes, or related | ||||||
| 4 | flavor products are delivered by use of a common carrier, | ||||||
| 5 | private delivery
service, or the mails, or the seller is | ||||||
| 6 | not in the physical presence of the buyer when the buyer | ||||||
| 7 | obtains possession of the cigarettes, electronic | ||||||
| 8 | cigarettes, or related flavor products. | ||||||
| 9 | "Delivery service" means any person (other than a person | ||||||
| 10 | that makes a delivery sale) who
delivers to the consumer the | ||||||
| 11 | cigarettes, electronic cigarettes, or related flavor products | ||||||
| 12 | sold in a delivery sale. | ||||||
| 13 | "Department" means the Department of Revenue. | ||||||
| 14 | "Government-issued identification" means a State driver's | ||||||
| 15 | license, State identification card, passport, a military | ||||||
| 16 | identification or an official naturalization or immigration | ||||||
| 17 | document, such as an alien registration recipient card | ||||||
| 18 | (commonly known as a "green card") or an immigrant visa. | ||||||
| 19 | "Mails" or "mailing" mean the shipment of cigarettes, | ||||||
| 20 | electronic cigarettes, or related flavor products through the | ||||||
| 21 | United States Postal Service. | ||||||
| 22 | "Out-of-state sale" means a sale of cigarettes, electronic | ||||||
| 23 | cigarettes, or related flavor products to a consumer located | ||||||
| 24 | outside of this State where the consumer submits the order for | ||||||
| 25 | such sale by means of a telephonic or other method of voice | ||||||
| 26 | transmission, the mails or any other delivery service, | ||||||
| |||||||
| |||||||
| 1 | facsimile transmission, or the Internet or other online service | ||||||
| 2 | and where the cigarettes, electronic cigarettes, or related | ||||||
| 3 | flavor products are delivered by use of the mails or other | ||||||
| 4 | delivery service. | ||||||
| 5 | "Person" means any individual, corporation, partnership, | ||||||
| 6 | limited liability company, association, or other organization | ||||||
| 7 | that engages in any for-profit or not-for-profit activities. | ||||||
| 8 | "Shipping package" means a container in which packs or | ||||||
| 9 | cartons of cigarettes, electronic cigarettes, or related | ||||||
| 10 | flavor products are shipped in connection with a delivery sale. | ||||||
| 11 | "Shipping documents" means bills of lading, air bills, or | ||||||
| 12 | any other documents used to evidence the undertaking by a | ||||||
| 13 | delivery service to deliver letters, packages, or other | ||||||
| 14 | containers.
| ||||||
| 15 | (Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10.)
| ||||||
| 16 | (720 ILCS 678/5) | ||||||
| 17 | Sec. 5. Unlawful shipment or transportation of cigarettes, | ||||||
| 18 | electronic cigarettes, or related flavor products. | ||||||
| 19 | (a) It is unlawful for any person engaged in the business | ||||||
| 20 | of selling cigarettes, electronic cigarettes, or related | ||||||
| 21 | flavor products to ship or cause to be shipped any cigarettes, | ||||||
| 22 | electronic cigarettes, or related flavor products unless the | ||||||
| 23 | person shipping the cigarettes:
| ||||||
| 24 | (1) is licensed as a distributor under either
the | ||||||
| 25 | Cigarette Tax Act, or the Cigarette Use Tax Act, or the | ||||||
| |||||||
| |||||||
| 1 | Tobacco Products Tax Act of 1995; or
delivers the | ||||||
| 2 | cigarettes, electronic cigarettes, or related flavor | ||||||
| 3 | products to a distributor licensed under either the | ||||||
| 4 | Cigarette Tax Act, or the Cigarette Use Tax Act, or the | ||||||
| 5 | Tobacco Products Tax Act of 1995; or | ||||||
| 6 | (2) ships them to an export warehouse proprietor | ||||||
| 7 | pursuant to
Chapter 52 of the Internal Revenue Code, or an | ||||||
| 8 | operator of
a customs bonded warehouse pursuant to Section | ||||||
| 9 | 1311 or
1555 of Title 19 of the United States Code.
| ||||||
| 10 | For purposes of this subsection (a), a person is a licensed | ||||||
| 11 | distributor if the person's name appears on a list of licensed | ||||||
| 12 | distributors published by the Illinois Department of Revenue.
| ||||||
| 13 | The term cigarette has the same meaning as defined in Section 1 | ||||||
| 14 | of the Cigarette Tax Act and Section 1 of the Cigarette Use Tax | ||||||
| 15 | Act.
The term electronic cigarette has the same meaning as | ||||||
| 16 | defined in Section 10-5 of the Tobacco Products Tax Act of | ||||||
| 17 | 1995. The term related flavor product has the same meaning as | ||||||
| 18 | defined in Section 5 of the Flavored Electronic Cigarette Ban | ||||||
| 19 | Act. Nothing in this Act prohibits a person licensed as a | ||||||
| 20 | distributor under the Cigarette Tax Act or the Cigarette Use | ||||||
| 21 | Tax Act from shipping or causing to be shipped any cigarettes | ||||||
| 22 | to a registered retailer under the Retailers' Occupation Tax | ||||||
| 23 | Act provided the cigarette tax or cigarette use tax has been | ||||||
| 24 | paid.
| ||||||
| 25 | (b) A common or contract carrier may transport cigarettes | ||||||
| 26 | to any individual person in this State only if the carrier | ||||||
| |||||||
| |||||||
| 1 | reasonably believes such cigarettes have been received from a | ||||||
| 2 | person described in paragraph (a)(1). Common or contract | ||||||
| 3 | carriers may make deliveries of cigarettes to licensed | ||||||
| 4 | distributors described in paragraph (a)(1) of this Section. | ||||||
| 5 | Nothing in this subsection (b) shall be construed to prohibit a | ||||||
| 6 | person other than a common or contract carrier from | ||||||
| 7 | transporting not more than 1,000 cigarettes at any one time to | ||||||
| 8 | any person in this State.
| ||||||
| 9 | (c) A common or contract carrier may not complete the | ||||||
| 10 | delivery of any cigarettes to persons other than those | ||||||
| 11 | described in paragraph (a)(1) of this Section without first | ||||||
| 12 | obtaining from the purchaser an official written | ||||||
| 13 | identification from any state or federal agency that displays | ||||||
| 14 | the person's date of birth or a birth certificate that includes | ||||||
| 15 | a reliable confirmation that the purchaser is at least 21 years | ||||||
| 16 | of age; that the cigarettes purchased are not intended for | ||||||
| 17 | consumption by an individual who is younger than 21 years of | ||||||
| 18 | age; and a written statement signed by the purchaser that | ||||||
| 19 | certifies the purchaser's address and that the purchaser is at | ||||||
| 20 | least 21 years of age. The statement shall also confirm: (1) | ||||||
| 21 | that the purchaser understands that signing another person's | ||||||
| 22 | name to the certification is illegal; (2) that the sale of | ||||||
| 23 | cigarettes to individuals under 21 years of age is illegal; and | ||||||
| 24 | (3) that the purchase of cigarettes by individuals under 21 | ||||||
| 25 | years of age is illegal under the laws of Illinois. | ||||||
| 26 | (d) When a person engaged in the business of selling
| ||||||
| |||||||
| |||||||
| 1 | cigarettes ships or causes to be shipped any cigarettes to any | ||||||
| 2 | person in this State, other than in the cigarette | ||||||
| 3 | manufacturer's or tobacco products manufacturer's original | ||||||
| 4 | container or wrapping, the container or wrapping must be | ||||||
| 5 | plainly and visibly marked with the word "cigarettes".
| ||||||
| 6 | (e) When a peace officer of this State or any duly | ||||||
| 7 | authorized officer or employee of the Illinois Department of | ||||||
| 8 | Public Health or Department of Revenue discovers any | ||||||
| 9 | cigarettes, electronic cigarettes, or related flavor products | ||||||
| 10 | which have been or which are being shipped or transported in | ||||||
| 11 | violation of this Section, he or she shall seize and take | ||||||
| 12 | possession of the cigarettes, electronic cigarettes, or | ||||||
| 13 | related flavor products, and the cigarettes shall be subject to | ||||||
| 14 | a forfeiture action pursuant to the procedures provided under | ||||||
| 15 | the Cigarette Tax Act or Cigarette Use Tax Act.
| ||||||
| 16 | (Source: P.A. 101-2, eff. 7-1-19.)
| ||||||
| 17 | Section 997. Severability. The provisions of this Act are | ||||||
| 18 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
| 19 | Section 999. Effective date. This Act takes effect June 1, | ||||||
| 20 | 2020.".
| ||||||
