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90_SB1113 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. LRB9003450LDdv LRB9003450LDdv 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- LRB9003450LDdv 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 45. 33 (d) Any person with a license under Section 40 and any -3- LRB9003450LDdv 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) No person under 18 years of age shall attempt to 18 purchase, purchase, accept receipt of, possess, use, or offer 19 to any person any purported proof of age that is false, 20 fraudulent, or not actually his or her own, for the purpose 21 of purchasing or receiving any tobacco product; provided, 22 however, that it shall not be unlawful for such a person to 23 accept receipt of a tobacco product from an employer when 24 required in the performance of the employee's duties. 25 (b) Any person under 18 years of age who violates this 26 Section shall be guilty of a petty offense and shall be 27 penalized as follows: 28 (1) For the first offense, by a mandatory 29 suspension of his or her Illinois driver's license (or in 30 the case of a person without an Illinois driver's 31 license, a postponement of driver's license application 32 eligibility) for a period not to exceed 60 days. 33 (2) For a second offense, a $200 fine and a -4- LRB9003450LDdv 1 mandatory suspension of his or her Illinois driver's 2 license (or in the case of a person without an Illinois 3 driver's license, a postponement of driver's license 4 application eligibility) for a 90-day period. 5 (3) For a third or subsequent offense, a $500 fine 6 and a mandatory suspension of his or her Illinois 7 driver's license (or in the case of a person without an 8 Illinois driver's license a postponement of driver's 9 license application eligibility) for a 180-day period. 10 In geographic areas in which educational programs 11 addressing the risks of tobacco consumption are available, a 12 court may also require participation in such an educational 13 program. 14 Section 20. Training of retail clerks. 15 (a) Every person engaged in the business of selling 16 tobacco products at retail shall notify each individual 17 employed by that person as a retail sales clerk that State 18 law prohibits the sale or distribution of tobacco products to 19 any person under 18 years of age and out-of-package sales of 20 cigarettes and smokeless tobacco. This notice shall be 21 provided before the individual commences work as a retail 22 sales clerk, or, in the case of an individual employed as a 23 retail sales clerk on the effective date of this Act, within 24 30 days of that date. The individual shall signify that he 25 or she has received the notice required by this Section by 26 signing a form stating as follows: 27 "I understand that State law prohibits the sale or 28 distribution of tobacco products to persons under 18 29 years of age and out-of-package sales of cigarettes and 30 smokeless tobacco products. I promise, as a condition of 31 my employment, to observe this law." 32 Each form signed by such individual shall indicate the date 33 of signature. The employer shall retain the form signed by -5- LRB9003450LDdv 1 each individual employed as a retail sales clerk until 120 2 days after the individual has left the employer's employ. 3 (b) Any employer who fails to comply with the 4 requirements of this Section is guilty of a petty offense and 5 for the first offense shall be fined $200, for the second 6 offense in a 12-month period, $400, and for the third or 7 subsequent offense in a 12-month period, $500. An employer 8 who complies with the requirements o this Section and who has 9 in effect a training program designed to make his or her 10 employees aware of how to comply with the requirements of 11 Section 10 shall not be subject to any civil penalty or 12 suspension, revocation, denial, or nonrenewal of a license by 13 reason of a sale to a person 18 years of age by a retail 14 sales clerk if the sales clerk had not been convicted of a 15 first offense under that Section prior to such sale. 16 Section 25. Signs. 17 (a) On and after the effective date of this Act, every 18 person who sells tobacco products at retail over the counter 19 shall post and maintain in legible condition, a sign stating 20 the following: 21 "STATE LAW STRICTLY PROHIBITS THE SALE OF TOBACCO 22 PRODUCTS TO PERSONS UNDER 18 YEARS OF AGE, THE PURCHASE 23 OF OR ATTEMPT TO PURCHASE SUCH TOBACCO PRODUCTS BY 24 PERSONS UNDER 18 YEARS OF AGE, OR THE OFFERING OF FALSE 25 PROOF OF AGE IN ORDER TO PURCHASE SUCH PRODUCTS." 26 (b) Any person who fails to place and maintain the sign 27 required by this Section 25 is guilty of a petty offense and 28 shall be fined not more than $100. 29 Section 30. Restriction on vending machines. 30 (a) No person shall sell tobacco products through a 31 vending machine unless the vending machine is located: 32 (1) In an area of factories, businesses, offices, -6- LRB9003450LDdv 1 private clubs, and other places not open to the general 2 public; 3 (2) In an area that is open to the public but to 4 which persons under the age of 18 years are denied 5 access; 6 (3) In a place where alcoholic beverages are sold 7 for consumption on the premises; 8 (4) In another places, but only if the machine (i) 9 is under the continuous supervision of the owner or 10 lessee of the premises or an employee thereof, (ii) can 11 be operated only by the activation of an electronic 12 switch by the owner or lessee of the premises or an 13 employee thereof prior to each purchase, and (iii) is 14 inaccessible to the public when the establishment is 15 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- LRB9003450LDdv 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- LRB9003450LDdv 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- LRB9003450LDdv 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- LRB9003450LDdv 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- LRB9003450LDdv 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- LRB9003450LDdv 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 the attempt to purchase and 9 possession violation under Section 15, under which the 10 agencies will be authorized to conduct inspections, and 11 engage in enforcement actions, as provided in this Section: 12 (1) the Illinois State Police; 13 (2) the sheriff of a county; or 14 (3) the head of the police department or police 15 force of any county, city, town, or village. 16 (b) The program of inspections authorized under this 17 Section 50 shall cover a range of licensed establishments 18 that reflects the distribution of the population under 18 19 years of age throughout the State where persons under 18 20 years of age are most likely to attempt to purchase tobacco 21 products. Licensed establishments shall not be selected for 22 inspection on the basis of evidence concerning prior 23 violations. If the Enforcement Agency conducts an inspection 24 at an establishment that does not result in evidence of a 25 violation, the Enforcement Agency shall not conduct another 26 inspection at the same establishment for a period of not less 27 than one year. 28 (c) For purposes of inspections and enforcement actions 29 undertaken pursuant to this Section 50, persons under 18 30 years of age may be enlisted to attempt to purchase or to 31 purchase tobacco products, provided that such persons shall 32 have the prior written consent of a parent or legal guardian, 33 and provided further that such persons shall be directly 34 supervised during the conduct of each inspection or -13- LRB9003450LDdv 1 enforcement action by an adult employee of the Enforcement 2 Agency or by the Illinois State Police, the sheriff of a 3 county, county police department, the head of the police 4 department or police force of any county, city, town, or 5 village, or any officer or employee thereof. No person under 6 18 years of age may misrepresent his or her age for the 7 purpose of purchasing or attempting to purchase tobacco 8 products. If questioned about his or her age during an 9 attempt to purchase or receive tobacco products, a person 10 under 18 years of age shall state his or her true age and 11 that he or she is under 18 years of age. A person under 18 12 years of age shall not be used in any inspection or 13 enforcement action at an establishment in which that person 14 is a regular customer. A photograph or video recording of 15 any person under 18 years of age assisting in an inspection 16 or enforcement action shall be taken prior to and after each 17 inspection or enforcement action, or shift of inspections or 18 enforcement actions, and retained for 2 years. The 19 appearance of a person under 18 years of age participating in 20 an inspection or enforcement action shall not be altered. 21 (d) The owner or an authorized employee of an 22 establishment where an inspection or enforcement action under 23 this Section 50 takes place shall be informed of the results 24 of the inspection or enforcement action not more than 72 25 hours after the inspection or enforcement action is 26 completed. The employee of the department or law enforcement 27 officer who directly supervised an inspection conducted 28 pursuant to this Section shall prepare a written report 29 within 7 days after completion. A copy of that report shall 30 be delivered to the owner of the establishment where the 31 inspection took place within 14 days of completion. The 32 report shall include the name and position of the person who 33 directly supervised the inspection, the age and date of birth 34 of the person under 18 years of age who assisted with the -14- LRB9003450LDdv 1 inspection, the date and time of the inspection, a reasonably 2 detailed description of the inspection, and the result of the 3 inspection. Any use of persons under 18 years of age other 4 than that permitted by this Section 50 to measure compliance 5 with or to enforce Section 10 or any other prohibitions of 6 like or similar import shall be unlawful and the person or 7 persons responsible for such use shall be subject to the 8 penalties prescribed for violation of Section 10. 9 (e) The Enforcement Agency shall compile the results of 10 inspections performed pursuant to this Section 50, and shall 11 prepare an annual report reflecting such results for 12 submission with the State's application for federal block 13 grants for substance abuse prevention and treatment in 14 accordance with the requirements of Section 1926 of the 15 federal Public Health Services Act (42 U.S.C. 300x-26). 16 (f) Failure to comply with any requirement of 17 subsections (a) through (d) of this Section 50 during an 18 inspection or enforcement action shall be an affirmative 19 defense to any action for violation of Section 10 brought as 20 a result of such inspection or enforcement action. 21 Information gathered during an inspection or enforcement 22 action that was conducted in a manner not in accordance with 23 this Section shall not be admitted as evidence in any action 24 and shall not be used in any report, filing, application, or 25 publication prepared by the Enforcement Agency or any other 26 agency of the State, including any report under Section 1926 27 of the federal Public Health Services Act (42 U.S.C. 28 300x-26). 29 (g) The Enforcement Agency shall negotiate annually with 30 the United States Secretary of Health and Human Services 31 interim performance targets and the time frame for achieving 32 the ultimate performance objective as provided in 45 C.F.R. 33 96.130. The Enforcement Agency shall not agree to any 34 interim performance target or any such time frame that is not -15- LRB9003450LDdv 1 realistic and attainable, and shall strive consistent with 2 this Section 50 and with Section 10 to ensure continued 3 federal funding for the State's substance abuse programs. 4 (h) To support inspections and enforcement actions 5 authorized under this Section, the Enforcement Agency may 6 expend funds from the following to the full extent permitted 7 by federal law: 8 (1) The primary prevention set-aside portion of 9 federal block grants for substance abuse prevention and 10 treatment (45 C.F.R. 96.124(b)(1)); 11 (2) The Centers for Disease Control's Preventive 12 Health and Health Services Block Grant (42 U.S.C. par. 13 300-w et seq.); and 14 (3) Any other available source of federal funds. 15 Section 55. Offset for enforcement and inspection. 16 License fees and penalties collected pursuant to this Act 17 shall be distributed to the Enforcement Agency for the 18 administration and enforcement of this Act. 19 Section 60. Preemption. 20 (a) Except as provided in subsection (b) of this 21 Section, a home rule or non-home rule unit of local 22 government in this State shall not have the power or 23 authority to enact or enforce any laws, ordinances, rules, or 24 regulations concerning the sale, distribution, display, use, 25 advertising or promotion of tobacco products. Except as 26 provided in subsection (b) of this Section, the power and 27 authority to regulate the sale, distribution, display, use 28 advertising, and promotion of tobacco products is an 29 exclusive State power or function. This Act is a denial and 30 limitation of home rule powers and functions under subsection 31 (h) of Section 6 of Article VII of the Illinois Constitution. 32 (b) Subsection (a) shall not preclude a home rule or -16- LRB9003450LDdv 1 non-home rule unit from continuing to require a license or 2 permit as a condition of selling tobacco products pursuant to 3 an ordinance enacted prior to the effective date of this Act 4 for the sole purpose of collecting the license or permit fee; 5 provided, that the fee imposed to obtain such permit or 6 license may not exceed the fee in effect on the effective 7 date of this Act. 8 Section 150. The Cigarette Tax Act is amended by 9 changing Section 4 as follows: 10 (35 ILCS 130/4) (from Ch. 120, par. 453.4) 11 Sec. 4. No person may engage in business as a distributor 12 of cigarettes in this State within the meaning of the first 2 13 definitions of distributor in Section 1 of this Act without 14 first having obtained a license therefor from the Department. 15 Application for license shall be made to the Department in 16 form as furnished and prescribed by the Department. Each 17 applicant for a license under this Section shall furnish to 18 the Department on the form signed and verified by the 19 applicant the following information: 20 (a) The name and address of the applicant; 21 (b) The address of the location at which the applicant 22 proposes to engage in business as a distributor of cigarettes 23 in this State; 24 (c) Such other additional information as the Department 25 may lawfully require by its rules and regulations. 26 The annual license fee payable to the Department for each 27 distributor's license shall be $250. The purpose of such 28 annual license fee is to defray the cost, to the Department, 29 of coding, serializing or coding and serializing, cigarette 30 tax stamps, and to assist the Enforcement Agency defined in 31 Section 5(2) of the Illinois Underage Purchase, Possession, 32 and Sales Prevention Act of 1997 with costs associated with -17- LRB9003450LDdv 1 the enforcement of that Act. Each applicant for license shall 2 pay such fee to the Department at the time of submitting his 3 application for license to the Department. Such fee shall be 4 divided equally between the Department and the Enforcement 5 Agency defined in Section 5(2) of the Illinois Underage 6 Purchase, Possession, and Sales Prevention Act of 1997. The 7 portion allocable to the Enforcement Agency shall be 8 transferred by the Department to the Enforcement Agency. 9 Every applicant who is required to procure a 10 distributor's license shall file with his application a joint 11 and several bond. Such bond shall be executed to the 12 Department of Revenue, with good and sufficient surety or 13 sureties residing or licensed to do business within the State 14 of Illinois, in the amount of $2,500, conditioned upon the 15 true and faithful compliance by the licensee with all of the 16 provisions of this Act. Such bond, or a reissue thereof, or a 17 substitute therefor, shall be kept in effect during the 18 entire period covered by the license. A separate application 19 for license shall be made, a separate annual license fee 20 paid, and a separate bond filed, for each place of business 21 at which a person who is required to procure a distributor's 22 license under this Section proposes to engage in business as 23 a distributor in Illinois under this Act. 24 The following are ineligible to receive a distributor's 25 license under this Act: 26 (1) a person who is not of good character and reputation 27 in the community in which he resides; 28 (2) a person who has been convicted of a felony under 29 any Federal or State law, if the Department, after 30 investigation and a hearing, if requested by the applicant, 31 determines that such person has not been sufficiently 32 rehabilitated to warrant the public trust; 33 (3) a corporation, if any officer, manager or director 34 thereof, or any stockholder or stockholders owning in the -18- LRB9003450LDdv 1 aggregate more than 5% of the stock of such corporation, 2 would not be eligible to receive a license under this Act for 3 any reason; 4 (4) a person previously licensed as a distributor or 5 wholesaler who has been convicted of a second offense under 6 Section 35 of the Illinois Underage Purchase, Possession, and 7 Sales Prevention Act of 1997. 8 The Department, upon receipt of an application, license 9 fee and bond in proper form, from a person who is eligible to 10 receive a distributor's license under this Act, shall issue 11 to such applicant a license in form as prescribed by the 12 Department, which license shall permit the applicant to which 13 it is issued to engage in business as a distributor at the 14 place shown in his application. All licenses issued by the 15 Department under this Act shall be valid for not to exceed 16 one year after issuance unless sooner revoked, canceled or 17 suspended as provided in this Act. No license issued under 18 this Act is transferable or assignable. Such license shall be 19 conspicuously displayed in the place of business conducted by 20 the licensee in Illinois under such license. 21 (Source: P.A. 78-255.) 22 Section 160. The Cigarette Use Tax Act is amended by 23 changing Section 4 as follows: 24 (35 ILCS 135/4) (from Ch. 120, par. 453.34) 25 Sec. 4. A distributor maintaining a place of business in 26 this State, if required to procure a license or allowed to 27 obtain a permit as a distributor under the Cigarette Tax Act, 28 need not obtain an additional license or permit under this 29 Act, but shall be deemed to be sufficiently licensed or 30 registered by virtue of his being licensed or registered 31 under the Cigarette Tax Act. 32 Every distributor maintaining a place of business in this -19- LRB9003450LDdv 1 State, if not required to procure a license or allowed to 2 obtain a permit as a distributor under the Cigarette Tax Act, 3 shall make a verified application to the Department (upon a 4 form prescribed and furnished by the Department) for a 5 license to act as a distributor under this Act. In completing 6 such application, the applicant shall furnish such 7 information as the Department may reasonably require. 8 The annual license fee payable to the Department for each 9 distributor's license shall be $250. The purpose of such 10 annual license fee is to defray the cost, to the Department, 11 of coding, serializing, or coding and serializing cigarette 12 tax stamps, and to assist the Enforcement Agency defined in 13 Section 5(2) of the Illinois Underage Purchase, Possession, 14 and Sales Prevention Act of 1997 with costs associated with 15 the enforcement of that Act. The applicant for license shall 16 pay such fee to the Department at the time of submitting the 17 application for license to the Department. Such fee shall be 18 divided equally between the Department and the Enforcement 19 Agency defined in Section 5(2) of the Illinois Underage 20 Purchase, Possession, and Sales Prevention Act of 1997. The 21 portion allocable to the Enforcement Agency shall be 22 transferred by the Department to the Enforcement Agency. 23 Such applicant shall file, with his application, a joint 24 and several bond. Such bond shall be executed to the 25 Department of Revenue, with good and sufficient surety or 26 sureties residing or licensed to do business within the State 27 of Illinois, in the amount of $2,500, conditioned upon the 28 true and faithful compliance by the licensee with all of the 29 provisions of this Act. Such bond, or a reissue thereof, or a 30 substitute therefor, shall be kept in effect during the 31 entire period covered by the license. A separate application 32 for license shall be made, a separate annual license fee 33 paid, and a separate bond filed, for each place of business 34 at or from which the applicant proposes to act as a -20- LRB9003450LDdv 1 distributor under this Act and for which the applicant is not 2 required to procure a license or allowed to obtain a permit 3 as a distributor under the Cigarette Tax Act. 4 The following are ineligible to receive a distributor's 5 license under this Act: 6 (1) a person who is not of good character and reputation 7 in the community in which he resides; 8 (2) a person who has been convicted of a felony under 9 any Federal or State law, if the Department, after 10 investigation and a hearing, if requested by the applicant, 11 determines that such person has not been sufficiently 12 rehabilitated to warrant the public trust; 13 (3) a corporation, if any officer, manager or director 14 thereof, or any stockholder or stockholders owning in the 15 aggregate more than 5% of the stock of such corporation, 16 would not be eligible to receive a license hereunder for any 17 reason; 18 (4) a person previously licensed as a distributor or 19 wholesaler who has been convicted of a second offense under 20 Section 35 of the Illinois Underage Purchase, Possession, and 21 Sales Prevention Act of 1997. 22 Upon approval of such application and bond and payment of 23 the required annual license fee, the Department shall issue a 24 license to the applicant. Such license shall permit the 25 applicant to engage in business as a distributor at or from 26 the place shown in his application. All licenses issued by 27 the Department under this Act shall be valid for not to 28 exceed one year after issuance unless sooner revoked, 29 canceled or suspended as in this Act provided. No license 30 issued under this Act is transferable or assignable. Such 31 license shall be conspicuously displayed at the place of 32 business for which it is issued. 33 (Source: P.A. 78-255.) -21- LRB9003450LDdv 1 Section 180. The Liquor Control Act of 1934 is amended 2 by changing Section 3-12 as follows: 3 (235 ILCS 5/3-12) (from Ch. 43, par. 108) 4 (Text of Section before amendment by P.A. 89-507) 5 Sec. 3-12. The State commission shall have the following 6 powers, functions and duties: 7 (1) To receive applications and to issue licenses to 8 manufacturers, foreign importers, importing distributors, 9 distributors, non-resident dealers, on premise consumption 10 retailers, off premise sale retailers, special event retailer 11 licensees, special use permit licenses, auction liquor 12 licenses, brew pubs, caterer retailers, non-beverage users, 13 railroads, including owners and lessees of sleeping, dining 14 and cafe cars, airplanes and boats, in accordance with the 15 provisions of this Act, and to suspend or revoke such 16 licenses upon the State commission's determination, upon 17 notice after hearing, that a licensee has violated any 18 provision of this Act or any rule or regulation issued 19 pursuant thereto and in effect for 30 days prior to such 20 violation. 21 In lieu of suspending or revoking a license, the 22 commission may impose a fine, upon the State commission's 23 determination and notice after hearing, that a licensee has 24 violated any provision of this Act or any rule or regulation 25 issued pursuant thereto and in effect for 30 days prior to 26 such violation. The fine imposed under this paragraph may 27 not exceed $500 for each violation. Each day that the 28 activity, which gave rise to the original fine, continues is 29 a separate violation. The maximum fine that may be levied 30 against any licensee, for the period of the license, shall 31 not exceed $20,000. 32 (2) To adopt such rules and regulations consistent with 33 the provisions of this Act which shall be necessary to carry -22- LRB9003450LDdv 1 on its functions and duties to the end that the health, 2 safety and welfare of the People of the State of Illinois 3 shall be protected and temperance in the consumption of 4 alcoholic liquors shall be fostered and promoted and to 5 distribute copies of such rules and regulations to all 6 licensees affected thereby. 7 (3) To call upon other administrative departments of the 8 State, county and municipal governments, county and city 9 police departments and upon prosecuting officers for such 10 information and assistance as it deems necessary in the 11 performance of its duties. 12 (4) To recommend to local commissioners rules and 13 regulations, not inconsistent with the law, for the 14 distribution and sale of alcoholic liquors throughout the 15 State. 16 (5) To inspect, or cause to be inspected, any premises 17 where alcoholic liquors are manufactured, distributed or 18 sold. 19 (6) To hear and determine appeals from orders of a local 20 commission in accordance with the provisions of this Act, as 21 hereinafter set forth. Hearings under this subsection shall 22 be held in Springfield or Chicago, at whichever location is 23 the more convenient for the majority of persons who are 24 parties to the hearing. 25 (7) The commission shall establish uniform systems of 26 accounts to be kept by all retail licensees having more than 27 4 employees, and for this purpose the commission may classify 28 all retail licensees having more than 4 employees and 29 establish a uniform system of accounts for each class and 30 prescribe the manner in which such accounts shall be kept. 31 The commission may also prescribe the forms of accounts to be 32 kept by all retail licensees having more than 4 employees, 33 including but not limited to accounts of earnings and 34 expenses and any distribution, payment, or other distribution -23- LRB9003450LDdv 1 of earnings or assets, and any other forms, records and 2 memoranda which in the judgment of the commission may be 3 necessary or appropriate to carry out any of the provisions 4 of this Act, including but not limited to such forms, records 5 and memoranda as will readily and accurately disclose at all 6 times the beneficial ownership of such retail licensed 7 business. The accounts, forms, records and memoranda shall 8 be available at all reasonable times for inspection by 9 authorized representatives of the State commission or by any 10 local liquor control commissioner or his or her authorized 11 representative. The commission, may, from time to time, 12 alter, amend or repeal, in whole or in part, any uniform 13 system of accounts, or the form and manner of keeping 14 accounts. 15 (8) In the conduct of any hearing authorized to be held 16 by the commission, to examine, or cause to be examined, under 17 oath, any licensee, and to examine or cause to be examined 18 the books and records of such licensee; to hear testimony and 19 take proof material for its information in the discharge of 20 its duties hereunder; to administer or cause to be 21 administered oaths; and for any such purpose to issue 22 subpoena or subpoenas to require the attendance of witnesses 23 and the production of books, which shall be effective in any 24 part of this State. 25 Any Circuit Court may by order duly entered, require the 26 attendance of witnesses and the production of relevant books 27 subpoenaed by the State commission and the court may compel 28 obedience to its order by proceedings for contempt. 29 (9) To investigate the administration of laws in 30 relation to alcoholic liquors in this and other states and 31 any foreign countries, and to recommend from time to time to 32 the Governor and through him or her to the legislature of 33 this State, such amendments to this Act, if any, as it may 34 think desirable and as will serve to further the general -24- LRB9003450LDdv 1 broad purposes contained in Section 1-2 hereof. 2 (10) To adopt such rules and regulations consistent with 3 the provisions of this Act which shall be necessary for the 4 control, sale or disposition of alcoholic liquor damaged as a 5 result of an accident, wreck, flood, fire or other similar 6 occurrence. 7 (11) To develop industry educational programs related to 8 responsible serving and selling, particularly in the areas of 9 overserving consumers and illegal underage purchasing and 10 consumption of alcoholic beverages. 11 (12) To develop and maintain a repository of license and 12 regulatory information. 13 (13) (Blank).On or before January 15, 1994, the14Commission shall issue a written report to the Governor and15General Assembly that is to be based on a comprehensive study16of the impact on and implications for the State of Illinois17of Section 1926 of the Federal ADAMHA Reorganization Act of181992 (Public Law 102-321). This study shall address the19extent to which Illinois currently complies with the20provisions of P.L. 102-321 and the rules promulgated pursuant21thereto.22As part of its report, the Commission shall provide the23following essential information:24(i) the number of retail distributors of tobacco25products, by type and geographic area, in the State;26(ii) the number of reported citations and27successful convictions, categorized by type and location28of retail distributor, for violation of the Sale of29Tobacco to Minors Act and the Smokeless Tobacco30Limitation Act;31(iii) the extent and nature of organized32educational and governmental activities that are intended33to promote, encourage or otherwise secure compliance with34any Illinois laws that prohibit the sale or distribution-25- LRB9003450LDdv 1of tobacco products to minors; and2(iv) the level of access and availability of3tobacco products to individuals under the age of 18.4To obtain the data necessary to comply with the5provisions of P.L. 102-321 and the requirements of this6report, the Commission shall conduct random, unannounced7inspections of a geographically and scientifically8representative sample of the State's retail tobacco9distributors.10The Commission shall consult with the Department of11Public Health, the Department of Alcoholism and Substance12Abuse, the Illinois State Police and any other executive13branch agency, and private organizations that may have14information relevant to this report.15 (14) The Commission shall receive and issue licenses to 16 persons engaged in the retail sales of tobacco products over 17 the counter or through any vending machine, as specified in 18 Section 40 of the Illinois Underage Purchase, Possession, and 19 Sales Prevention Act of 1997. The Commission shall enforce 20 the Illinois Underage Purchase Possession, and Sales 21 Prevention Act of 1997, conduct the inspections described in 22 Section 45 of that Act, and submit the report required by 23 Section 1926 of the federal Public Health Service Act (42 24 U.S.C. 300x-26). The Commission shall not promulgate any 25 rules with respect to the Illinois Underage Purchase, 26 Possession, and Sales Prevention Act of 1997. 27 Notwithstanding any other provision of this Act, and except 28 as specifically provided in Sections 40 and 45 of the 29 Illinois Underage Purchase, Possession, and Sales Prevention 30 Act of 1997, the Commission shall not exercise any authority 31 with respect to the licensing of sellers of tobacco products, 32 the sale or distribution of such products, or the inspection 33 of establishments that sell such products at retail. 34 (Source: P.A. 88-91; 88-418; 88-670, eff. 12-2-94.) -26- LRB9003450LDdv 1 (Text of Section after amendment by P.A. 89-507) 2 Sec. 3-12. The State commission shall have the following 3 powers, functions and duties: 4 (1) To receive applications and to issue licenses to 5 manufacturers, foreign importers, importing distributors, 6 distributors, non-resident dealers, on premise consumption 7 retailers, off premise sale retailers, special event retailer 8 licensees, special use permit licenses, auction liquor 9 licenses, brew pubs, caterer retailers, non-beverage users, 10 railroads, including owners and lessees of sleeping, dining 11 and cafe cars, airplanes and boats, in accordance with the 12 provisions of this Act, and to suspend or revoke such 13 licenses upon the State commission's determination, upon 14 notice after hearing, that a licensee has violated any 15 provision of this Act or any rule or regulation issued 16 pursuant thereto and in effect for 30 days prior to such 17 violation. 18 In lieu of suspending or revoking a license, the 19 commission may impose a fine, upon the State commission's 20 determination and notice after hearing, that a licensee has 21 violated any provision of this Act or any rule or regulation 22 issued pursuant thereto and in effect for 30 days prior to 23 such violation. The fine imposed under this paragraph may 24 not exceed $500 for each violation. Each day that the 25 activity, which gave rise to the original fine, continues is 26 a separate violation. The maximum fine that may be levied 27 against any licensee, for the period of the license, shall 28 not exceed $20,000. 29 (2) To adopt such rules and regulations consistent with 30 the provisions of this Act which shall be necessary to carry 31 on its functions and duties to the end that the health, 32 safety and welfare of the People of the State of Illinois 33 shall be protected and temperance in the consumption of 34 alcoholic liquors shall be fostered and promoted and to -27- LRB9003450LDdv 1 distribute copies of such rules and regulations to all 2 licensees affected thereby. 3 (3) To call upon other administrative departments of the 4 State, county and municipal governments, county and city 5 police departments and upon prosecuting officers for such 6 information and assistance as it deems necessary in the 7 performance of its duties. 8 (4) To recommend to local commissioners rules and 9 regulations, not inconsistent with the law, for the 10 distribution and sale of alcoholic liquors throughout the 11 State. 12 (5) To inspect, or cause to be inspected, any premises 13 where alcoholic liquors are manufactured, distributed or 14 sold. 15 (6) To hear and determine appeals from orders of a local 16 commission in accordance with the provisions of this Act, as 17 hereinafter set forth. Hearings under this subsection shall 18 be held in Springfield or Chicago, at whichever location is 19 the more convenient for the majority of persons who are 20 parties to the hearing. 21 (7) The commission shall establish uniform systems of 22 accounts to be kept by all retail licensees having more than 23 4 employees, and for this purpose the commission may classify 24 all retail licensees having more than 4 employees and 25 establish a uniform system of accounts for each class and 26 prescribe the manner in which such accounts shall be kept. 27 The commission may also prescribe the forms of accounts to be 28 kept by all retail licensees having more than 4 employees, 29 including but not limited to accounts of earnings and 30 expenses and any distribution, payment, or other distribution 31 of earnings or assets, and any other forms, records and 32 memoranda which in the judgment of the commission may be 33 necessary or appropriate to carry out any of the provisions 34 of this Act, including but not limited to such forms, records -28- LRB9003450LDdv 1 and memoranda as will readily and accurately disclose at all 2 times the beneficial ownership of such retail licensed 3 business. The accounts, forms, records and memoranda shall 4 be available at all reasonable times for inspection by 5 authorized representatives of the State commission or by any 6 local liquor control commissioner or his or her authorized 7 representative. The commission, may, from time to time, 8 alter, amend or repeal, in whole or in part, any uniform 9 system of accounts, or the form and manner of keeping 10 accounts. 11 (8) In the conduct of any hearing authorized to be held 12 by the commission, to examine, or cause to be examined, under 13 oath, any licensee, and to examine or cause to be examined 14 the books and records of such licensee; to hear testimony and 15 take proof material for its information in the discharge of 16 its duties hereunder; to administer or cause to be 17 administered oaths; and for any such purpose to issue 18 subpoena or subpoenas to require the attendance of witnesses 19 and the production of books, which shall be effective in any 20 part of this State. 21 Any Circuit Court may by order duly entered, require the 22 attendance of witnesses and the production of relevant books 23 subpoenaed by the State commission and the court may compel 24 obedience to its order by proceedings for contempt. 25 (9) To investigate the administration of laws in 26 relation to alcoholic liquors in this and other states and 27 any foreign countries, and to recommend from time to time to 28 the Governor and through him or her to the legislature of 29 this State, such amendments to this Act, if any, as it may 30 think desirable and as will serve to further the general 31 broad purposes contained in Section 1-2 hereof. 32 (10) To adopt such rules and regulations consistent with 33 the provisions of this Act which shall be necessary for the 34 control, sale or disposition of alcoholic liquor damaged as a -29- LRB9003450LDdv 1 result of an accident, wreck, flood, fire or other similar 2 occurrence. 3 (11) To develop industry educational programs related to 4 responsible serving and selling, particularly in the areas of 5 overserving consumers and illegal underage purchasing and 6 consumption of alcoholic beverages. 7 (12) To develop and maintain a repository of license and 8 regulatory information. 9 (13) (Blank).On or before January 15, 1994, the10Commission shall issue a written report to the Governor and11General Assembly that is to be based on a comprehensive study12of the impact on and implications for the State of Illinois13of Section 1926 of the Federal ADAMHA Reorganization Act of141992 (Public Law 102-321). This study shall address the15extent to which Illinois currently complies with the16provisions of P.L. 102-321 and the rules promulgated pursuant17thereto.18As part of its report, the Commission shall provide the19following essential information:20(i) the number of retail distributors of tobacco21products, by type and geographic area, in the State;22(ii) the number of reported citations and23successful convictions, categorized by type and location24of retail distributor, for violation of the Sale of25Tobacco to Minors Act and the Smokeless Tobacco26Limitation Act;27(iii) the extent and nature of organized28educational and governmental activities that are intended29to promote, encourage or otherwise secure compliance with30any Illinois laws that prohibit the sale or distribution31of tobacco products to minors; and32(iv) the level of access and availability of33tobacco products to individuals under the age of 18.34To obtain the data necessary to comply with the-30- LRB9003450LDdv 1provisions of P.L. 102-321 and the requirements of this2report, the Commission shall conduct random, unannounced3inspections of a geographically and scientifically4representative sample of the State's retail tobacco5distributors.6The Commission shall consult with the Department of7Public Health, the Department of Human Services, the Illinois8State Police and any other executive branch agency, and9private organizations that may have information relevant to10this report.11 (14) The Commission shall receive and issue licenses to 12 persons engaged in the retail sales of tobacco products over 13 the counter or through any vending machine, as specified in 14 Section 40 of the Illinois Underage Purchase, Possession, and 15 Sales Prevention Act of 1997. The Commission shall enforce 16 the Illinois Underage Purchase Possession, and Sales 17 Prevention Act of 1997, conduct the inspections described in 18 Section 45 of such Act, and submit the report required by 19 Section 1926 of the federal Public Health Service Act (42 20 U.S.C. 300x-26). The Commission shall not promulgate any 21 rules with respect to the Illinois Underage Purchase, 22 Possession, and Sales Prevention Act of 1997. 23 Notwithstanding any other provision of this Act, and except 24 as specifically provided in Sections 40 and 45 of the 25 Illinois Underage Purchase, Possession, and Sales Prevention 26 Act of 1997, the Commission shall not exercise any authority 27 with respect to the licensing of sellers of tobacco products, 28 the sale or distribution of such products, or the inspection 29 of establishments that sell such products at retail. 30 (Source: P.A. 88-91; 88-418; 88-670, eff. 12-2-94; 89-507, 31 eff. 7-1-97.) 32 (720 ILCS 675/Act rep.) 33 Section 300. The Sale of Tobacco to Minors Act is -31- LRB9003450LDdv 1 repealed. 2 (720 ILCS 680/Act rep.) 3 Section 400. The Smokeless Tobacco Limitation Act is 4 repealed. 5 Section 995. No acceleration or delay. Where this Act 6 makes changes in a statute that is represented in this Act by 7 text that is not yet or no longer in effect (for example, a 8 Section represented by multiple versions), the use of that 9 text does not accelerate or delay the taking effect of (i) 10 the changes made by this Act or (ii) provisions derived from 11 any other Public Act. 12 Section 99. Effective date. This Act takes effect upon 13 becoming law.