[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ House Amendment 002 ] |
91_HB3995ham001
LRB9111789SMdvam01
1 AMENDMENT TO HOUSE BILL 3995
2 AMENDMENT NO. . Amend House Bill 3995 by replacing
3 the title with the following:
4 "AN ACT concerning cigarettes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Cigarette Tax Act is amended by adding
8 Section 3-10 as follows:
9 (35 ILCS 130/3-10 new)
10 Sec. 3-10. Cigarette enforcement.
11 (a) Prohibitions. It is unlawful for any person:
12 (1) to sell or distribute in this State; to
13 acquire, hold, own, possess, or transport, for sale or
14 distribution in this State; or to import, or cause to be
15 imported into this State for sale or distribution in this
16 State:
17 (A) any cigarettes the package of which:
18 (i) bears any statement, label, stamp,
19 sticker, or notice indicating that the
20 manufacturer did not intend the cigarettes to
21 be sold, distributed, or used in the United
-2- LRB9111789SMdvam01
1 States, including but not limited to labels
2 stating "For Export Only", "U.S. Tax Exempt",
3 "For Use Outside U.S.", or similar wording; or
4 (ii) does not comply with:
5 (aa) all requirements imposed by or
6 pursuant to federal law regarding warnings
7 and other information on packages of
8 cigarettes manufactured, packaged, or
9 imported for sale, distribution, or use in
10 the United States, including but not
11 limited to the precise warning labels
12 specified in the federal Cigarette
13 Labeling and Advertising Act, 15 U.S.C.
14 1333; and
15 (bb) all federal trademark and
16 copyright laws;
17 (B) any cigarettes imported into the United
18 States in violation of 26 U.S.C. 5754 or any other
19 federal law, or implementing federal regulations;
20 (C) any cigarettes that such person otherwise
21 knows or has reason to know the manufacturer did not
22 intend to be sold, distributed, or used in the
23 United States; or
24 (D) any cigarettes for which there has not
25 been submitted to the Secretary of the U.S.
26 Department of Health and Human Services the list or
27 lists of the ingredients added to tobacco in the
28 manufacture of the cigarettes required by the
29 federal Cigarette Labeling and Advertising Act, 15
30 U.S.C. 1335a;
31 (2) to alter the package of any cigarettes, prior
32 to sale or distribution to the ultimate consumer, so as
33 to remove, conceal, or obscure:
34 (A) any statement, label, stamp, sticker, or
-3- LRB9111789SMdvam01
1 notice described in subdivision (a)(1)(A)(i) of this
2 Section;
3 (B) any health warning that is not specified
4 in, or does not conform with the requirements of,
5 the federal Cigarette Labeling and Advertising Act,
6 15 U.S.C. 1333; or
7 (3) to affix any stamp required pursuant to this
8 Act to the package of any cigarettes described in
9 subdivision (a)(1) of this Section or altered in
10 violation of subdivision (a)(2).
11 (b) Documentation. On the first business day of each
12 month, each person licensed to affix the State tax stamp to
13 cigarettes shall file with the Department, for all cigarettes
14 imported into the United States to which the person has
15 affixed the tax stamp in the preceding month:
16 (1) a copy of:
17 (A) the permit issued pursuant to the Internal
18 Revenue Code, 26 U.S.C. 5713, to the person
19 importing the cigarettes into the United States
20 allowing the person to import the cigarettes; and
21 (B) the customs form containing, with respect
22 to the cigarettes, the internal revenue tax
23 information required by the U.S. Bureau of Alcohol,
24 Tobacco and Firearms;
25 (2) a statement, signed by the person under penalty
26 of perjury, which shall be treated as confidential by the
27 Department and exempt from disclosure under the Freedom
28 of Information Act, identifying the brand and brand
29 styles of all such cigarettes, the quantity of each brand
30 style of such cigarettes, the supplier of such
31 cigarettes, and the person or persons, if any, to whom
32 such cigarettes have been conveyed for resale; and a
33 separate statement, signed by the individual under
34 penalty of perjury, which shall not be treated as
-4- LRB9111789SMdvam01
1 confidential or exempt from disclosure, separately
2 identifying the brands and brand styles of such
3 cigarettes; and
4 (3) a statement, signed by an officer of the
5 manufacturer or importer under penalty of perjury,
6 certifying that the manufacturer or importer has complied
7 with:
8 (A) the package health warning and ingredient
9 reporting requirements of the federal Cigarette
10 Labeling and Advertising Act, 15 U.S.C. 1333 and
11 1335a, with respect to such cigarettes; and
12 (B) the provisions of Exhibit T of the Master
13 Settlement Agreement entered in the case of People
14 of the State of Illinois v. Philip Morris, et al.
15 (Circuit Court of Cook County, No. 96-L13146),
16 including a statement indicating whether the
17 manufacturer is, or is not, a participating tobacco
18 manufacturer within the meaning of Exhibit T.
19 (c) Administrative sanctions.
20 (1) The Department may revoke or suspend the
21 license or licenses of any distributor pursuant to the
22 procedures set forth in Section 6 and impose on the
23 distributor a civil penalty in an amount not to exceed
24 the greater of 500% of the retail value of the cigarettes
25 involved or $5,000, upon finding a violation by the
26 distributor of this Section, or any implementing rule
27 promulgated by the Department.
28 (2) Cigarettes that are acquired, held, owned,
29 possessed, transported in, imported into, or sold or
30 distributed in this State in violation of this Section
31 shall be deemed contraband under this Act and are subject
32 to seizure and forfeiture as provided in this Act, and
33 all such cigarettes seized and forfeited shall be
34 destroyed. Such cigarettes shall be deemed contraband
-5- LRB9111789SMdvam01
1 whether the violation of this Section is knowing or
2 otherwise.
3 (d) Unfair trade practices. A violation of subsection
4 (a) or subsection (b) of this Section shall constitute an
5 unlawful practice as provided in the Consumer Fraud and
6 Deceptive Business Practices Act.
7 (e) Unfair cigarette sales. For purposes of the
8 Trademark Registration and Protection Act and the Counterfeit
9 Trademark Act, cigarettes imported or reimported into the
10 United States for sale or distribution under any trade name,
11 trade dress, or trademark that is the same as, or is
12 confusingly similar to, any trade name, trade dress, or
13 trademark used for cigarettes manufactured in the United
14 States for sale or distribution in the United States shall be
15 presumed to have been purchased outside of the ordinary
16 channels of trade.
17 (f) General provisions.
18 (1) This Section shall be enforced by the
19 Department; provided that, at the request of the Director
20 of Revenue or the Director's duly authorized agent, the
21 State police and all local police authorities shall
22 enforce the provisions of this Section. The Attorney
23 General has concurrent power with the State's Attorney of
24 any county to enforce this Section.
25 (2) For the purpose of enforcing this Section, the
26 Director of Revenue and any agency to which the Director
27 has delegated enforcement responsibility pursuant to
28 subdivision (f)(1) may request information form any State
29 or local agency and may share information with and
30 request information from any federal agency and any
31 agency of any other state or any local agency of any
32 other state.
33 (3) In addition to any other remedy provided by
34 law, including enforcement as provided in subdivision
-6- LRB9111789SMdvam01
1 (a)(1), any person may bring an action for appropriate
2 injunctive or other equitable relief for a violation of
3 this Section; actual damages, if any, sustained by reason
4 of the violation; and, as determined by the court,
5 interest on the damages from the date of the complaint,
6 taxable costs, and reasonable attorney's fees. If the
7 trier of fact finds that the violation is flagrant, it
8 may increase recovery to an amount not in excess of 3
9 times the actual damages sustained by reason of the
10 violation.
11 (g) Definitions. As used in this Section:
12 "Importer" means that term as defined in 26 U.S.C.
13 5702(1).
14 "Package" means that term as defined in 15 U.S.C.
15 1332(4).
16 (h) Applicability.
17 (1) This Section does not apply to:
18 (A) cigarettes allowed to be imported or
19 brought into the United States for personal use; and
20 (B) cigarettes sold or intended to be sold as
21 duty-free merchandise by a duty-free sales
22 enterprise in accordance with the provisions of 19
23 U.S.C. 1555(b) and any implementing regulations;
24 except that this Section shall apply to any such
25 cigarettes that are brought back into the customs
26 territory for resale within the customs territory.
27 (2) The penalties provided in this Section are in
28 addition to any other penalties imposed under other
29 provision of law.
30 Section 10. The Cigarette Use Tax Act is amended by
31 adding Section 3-10 as follows:
32 (35 ILCS 135/3-10 new)
-7- LRB9111789SMdvam01
1 Sec. 3-10. Cigarette enforcement.
2 (a) Prohibitions. It is unlawful for any person:
3 (1) to sell or distribute in this State; to
4 acquire, hold, own, possess, or transport, for sale or
5 distribution in this State; or to import, or cause to be
6 imported into this State for sale or distribution in this
7 State:
8 (A) any cigarettes the package of which:
9 (i) bears any statement, label, stamp,
10 sticker, or notice indicating that the
11 manufacturer did not intend the cigarettes to
12 be sold, distributed, or used in the United
13 States, including but not limited to labels
14 stating "For Export Only", "U.S. Tax Exempt",
15 "For Use Outside U.S.", or similar wording; or
16 (ii) does not comply with:
17 (aa) all requirements imposed by or
18 pursuant to federal law regarding warnings
19 and other information on packages of
20 cigarettes manufactured, packaged, or
21 imported for sale, distribution, or use in
22 the United States, including but not
23 limited to the precise warning labels
24 specified in the federal Cigarette
25 Labeling and Advertising Act, 15 U.S.C.
26 1333; and
27 (bb) all federal trademark and
28 copyright laws;
29 (B) any cigarettes imported into the United
30 States in violation of 26 U.S.C. 5754 or any other
31 federal law, or implementing federal regulations;
32 (C) any cigarettes that such person otherwise
33 knows or has reason to know the manufacturer did not
34 intend to be sold, distributed, or used in the
-8- LRB9111789SMdvam01
1 United States; or
2 (D) any cigarettes for which there has not
3 been submitted to the Secretary of the U.S.
4 Department of Health and Human Services the list or
5 lists of the ingredients added to tobacco in the
6 manufacture of the cigarettes required by the
7 federal Cigarette Labeling and Advertising Act, 15
8 U.S.C. 1335a;
9 (2) to alter the package of any cigarettes, prior
10 to sale or distribution to the ultimate consumer, so as
11 to remove, conceal, or obscure:
12 (A) any statement, label, stamp, sticker, or
13 notice described in subdivision (a)(1)(A)(i) of this
14 Section;
15 (B) any health warning that is not specified
16 in, or does not conform with the requirements of,
17 the federal Cigarette Labeling and Advertising Act,
18 15 U.S.C. 1333; or
19 (3) to affix any stamp required pursuant to this
20 Act to the package of any cigarettes described in
21 subdivision (a)(1) of this Section or altered in
22 violation of subdivision (a)(2).
23 (b) Documentation. On the first business day of each
24 month, each person licensed to affix the State tax stamp to
25 cigarettes shall file with the Department, for all cigarettes
26 imported into the United States to which the person has
27 affixed the tax stamp in the preceding month:
28 (1) a copy of:
29 (A) the permit issued pursuant to the Internal
30 Revenue Code, 26 U.S.C. 5713, to the person
31 importing the cigarettes into the United States
32 allowing the person to import the cigarettes; and
33 (B) the customs form containing, with respect
34 to the cigarettes, the internal revenue tax
-9- LRB9111789SMdvam01
1 information required by the U.S. Bureau of Alcohol,
2 Tobacco and Firearms;
3 (2) a statement, signed by the person under penalty
4 of perjury, which shall be treated as confidential by the
5 Department and exempt from disclosure under the Freedom
6 of Information Act, identifying the brand and brand
7 styles of all such cigarettes, the quantity of each brand
8 style of such cigarettes, the supplier of such
9 cigarettes, and the person or persons, if any, to whom
10 such cigarettes have been conveyed for resale; and a
11 separate statement, signed by the individual under
12 penalty of perjury, which shall not be treated as
13 confidential or exempt from disclosure, separately
14 identifying the brands and brand styles of such
15 cigarettes; and
16 (3) a statement, signed by an officer of the
17 manufacturer or importer under penalty of perjury,
18 certifying that the manufacturer or importer has complied
19 with:
20 (A) the package health warning and ingredient
21 reporting requirements of the federal Cigarette
22 Labeling and Advertising Act, 15 U.S.C. 1333 and
23 1335a, with respect to such cigarettes; and
24 (B) the provisions of Exhibit T of the Master
25 Settlement Agreement entered in the case of People
26 of the State of Illinois v. Philip Morris, et al.
27 (Circuit Court of Cook County, No. 96-L13146),
28 including a statement indicating whether the
29 manufacturer is, or is not, a participating tobacco
30 manufacturer within the meaning of Exhibit T.
31 (c) Administrative sanctions.
32 (1) The Department may revoke or suspend the
33 license or licenses of any distributor pursuant to the
34 procedures set forth in Section 6 and impose on the
-10- LRB9111789SMdvam01
1 distributor a civil penalty in an amount not to exceed
2 the greater of 500% of the retail value of the cigarettes
3 involved or $5,000, upon finding a violation by the
4 distributor of this Section, or any implementing rule
5 promulgated by the Department.
6 (2) Cigarettes that are acquired, held, owned,
7 possessed, transported in, imported into, or sold or
8 distributed in this State in violation of this Section
9 shall be deemed contraband under this Act and are subject
10 to seizure and forfeiture as provided in this Act, and
11 all such cigarettes seized and forfeited shall be
12 destroyed. Such cigarettes shall be deemed contraband
13 whether the violation of this Section is knowing or
14 otherwise.
15 (d) Unfair trade practices. A violation of subsection
16 (a) or subsection (b) of this Section shall constitute an
17 unlawful practice as provided in the Consumer Fraud and
18 Deceptive Business Practices Act.
19 (e) Unfair cigarette sales. For purposes of the
20 Trademark Registration and Protection Act and the Counterfeit
21 Trademark Act, cigarettes imported or reimported into the
22 United States for sale or distribution under any trade name,
23 trade dress, or trademark that is the same as, or is
24 confusingly similar to, any trade name, trade dress, or
25 trademark used for cigarettes manufactured in the United
26 States for sale or distribution in the United States shall be
27 presumed to have been purchased outside of the ordinary
28 channels of trade.
29 (f) General provisions.
30 (1) This Section shall be enforced by the
31 Department; provided that, at the request of the Director
32 of Revenue or the Director's duly authorized agent, the
33 State police and all local police authorities shall
34 enforce the provisions of this Section. The Attorney
-11- LRB9111789SMdvam01
1 General has concurrent power with the State's Attorney of
2 any county to enforce this Section.
3 (2) For the purpose of enforcing this Section, the
4 Director of Revenue and any agency to which the Director
5 has delegated enforcement responsibility pursuant to
6 subdivision (f)(1) may request information form any State
7 or local agency and may share information with and
8 request information from any federal agency and any
9 agency of any other state or any local agency of any
10 other state.
11 (3) In addition to any other remedy provided by
12 law, including enforcement as provided in subdivision
13 (a)(1), any person may bring an action for appropriate
14 injunctive or other equitable relief for a violation of
15 this Section; actual damages, if any, sustained by reason
16 of the violation; and, as determined by the court,
17 interest on the damages from the date of the complaint,
18 taxable costs, and reasonable attorney's fees. If the
19 trier of fact finds that the violation is flagrant, it
20 may increase recovery to an amount not in excess of 3
21 times the actual damages sustained by reason of the
22 violation.
23 (g) Definitions. As used in this Section:
24 "Importer" means that term as defined in 26 U.S.C.
25 5702(1).
26 "Package" means that term as defined in 15 U.S.C.
27 1332(4).
28 (h) Applicability.
29 (1) This Section does not apply to:
30 (A) cigarettes allowed to be imported or
31 brought into the United States for personal use; and
32 (B) cigarettes sold or intended to be sold as
33 duty-free merchandise by a duty-free sales
34 enterprise in accordance with the provisions of 19
-12- LRB9111789SMdvam01
1 U.S.C. 1555(b) and any implementing regulations;
2 except that this Section shall apply to any such
3 cigarettes that are brought back into the customs
4 territory for resale within the customs territory.
5 (2) The penalties provided in this Section are in
6 addition to any other penalties imposed under other
7 provision of law.
8 Section 15. The Consumer Fraud and Deceptive Business
9 Practices Act is amended by changing Section 2Z as follows:
10 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
11 Sec. 2Z. Violations of other Acts. Any person who
12 knowingly violates the Automotive Repair Act, the Home Repair
13 and Remodeling Act, the Dance Studio Act, the Physical
14 Fitness Services Act, the Hearing Instrument Consumer
15 Protection Act, the Illinois Union Label Act, the Job
16 Referral and Job Listing Services Consumer Protection Act,
17 the Travel Promotion Consumer Protection Act, the Credit
18 Services Organizations Act, the Automatic Telephone Dialers
19 Act, the Pay-Per-Call Services Consumer Protection Act, the
20 Telephone Solicitations Act, the Illinois Funeral or Burial
21 Funds Act, the Cemetery Care Act, the Safe and Hygienic Bed
22 Act, the Pre-Need Cemetery Sales Act, subsection (a) or (b)
23 of Section 3-10 of the Cigarette Tax Act, subsection (a) or
24 (b) of Section 3-10 of the Cigarette Use Tax Act, or the
25 Electronic Mail Act commits an unlawful practice within the
26 meaning of this Act.
27 (Source: P.A. 90-426, eff. 1-1-98; 91-164, eff. 7-16-99;
28 91-230, eff.1-1-00; 91-233, eff. 1-1-00; revised 8-9-99.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.".