Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3452 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-1001
2	1		SB3452 EnrolledLRB103 37528 HLH 67651 b SB3452 Enrolled LRB103 37528 HLH 67651 b
3	2		SB3452 Enrolled LRB103 37528 HLH 67651 b
4		-	AN ACT concerning revenue.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Cigarette Tax Act is amended by changing
8		-	Section 18a as follows:
9		-	(35 ILCS 130/18a) (from Ch. 120, par. 453.18a)
10		-	Sec. 18a. After seizing any original packages of
11		-	cigarettes, or cigarette vending devices, as provided in
12		-	Section 18 of this Act, the Department shall hold a hearing and
13		-	shall determine whether such original packages of cigarettes,
14		-	at the time of their seizure by the Department, were
15		-	contraband cigarettes, or whether such cigarette vending
16		-	devices, at the time of their seizure by the Department,
17		-	contained original packages of contraband cigarettes. The
18		-	Department is not required to hold such a hearing if a waiver
19		-	and consent to forfeiture has been executed by the owner of the
20		-	property, if the owner is known, and by the person in whose
21		-	possession the property so taken was found, if that person is
22		-	known and if that person is not the owner of the property. The
23		-	Department shall give not less than 7 days' notice of the time
24		-	and place of such hearing to the owner of such property if the
25		-	owner he is known, and also to the person in whose possession
26		-	the property so taken was found, if such person is known and if
	3	+	1 AN ACT concerning revenue.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Cigarette Tax Act is amended by changing
	7	+	5 Section 18a as follows:
	8	+	6 (35 ILCS 130/18a) (from Ch. 120, par. 453.18a)
	9	+	7 Sec. 18a. After seizing any original packages of
	10	+	8 cigarettes, or cigarette vending devices, as provided in
	11	+	9 Section 18 of this Act, the Department shall hold a hearing and
	12	+	10 shall determine whether such original packages of cigarettes,
	13	+	11 at the time of their seizure by the Department, were
	14	+	12 contraband cigarettes, or whether such cigarette vending
	15	+	13 devices, at the time of their seizure by the Department,
	16	+	14 contained original packages of contraband cigarettes. The
	17	+	15 Department is not required to hold such a hearing if a waiver
	18	+	16 and consent to forfeiture has been executed by the owner of the
	19	+	17 property, if the owner is known, and by the person in whose
	20	+	18 possession the property so taken was found, if that person is
	21	+	19 known and if that person is not the owner of the property. The
	22	+	20 Department shall give not less than 7 days' notice of the time
	23	+	21 and place of such hearing to the owner of such property if the
	24	+	22 owner he is known, and also to the person in whose possession
	25	+	23 the property so taken was found, if such person is known and if
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30	29		SB3452 Enrolled LRB103 37528 HLH 67651 b
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33		-	such person in possession is not the owner of said property. In
34		-	case neither the owner nor the person in possession of such
35		-	property is known, the Department shall cause publication of
36		-	the time and place of such hearing to be made at least once in
37		-	each week for 3 weeks successively in a newspaper of general
38		-	circulation in the county where such hearing is to be held.
39		-	If, as the result of such hearing, the Department shall
40		-	determine that the original packages of cigarettes seized were
41		-	at the time of seizure contraband cigarettes, or that any
42		-	cigarette vending device at the time of its seizure contained
43		-	original packages of contraband cigarettes, or upon receipt of
44		-	a properly executed waiver and consent to forfeiture as
45		-	provided in this Section, the Department shall enter an order
46		-	declaring such original packages of cigarettes or such
47		-	cigarette vending devices confiscated and forfeited to the
48		-	State, and to be held by the Department for disposal by it as
49		-	provided in Section 21 of this Act. The Department shall give
50		-	notice of such order to the owner of such property if the owner
51		-	he is known, and also to the person in whose possession the
52		-	property so taken was found, if such person is known and if
53		-	such person in possession is not the owner of said property. In
54		-	case neither the owner nor the person in possession of such
55		-	property is known, the Department shall cause publication of
56		-	such order to be made at least once in each week for 3 weeks
57		-	successively in a newspaper of general circulation in the
58		-	county where such hearing was held.
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	33	+	SB3452 Enrolled - 2 - LRB103 37528 HLH 67651 b
	34	+	1 such person in possession is not the owner of said property. In
	35	+	2 case neither the owner nor the person in possession of such
	36	+	3 property is known, the Department shall cause publication of
	37	+	4 the time and place of such hearing to be made at least once in
	38	+	5 each week for 3 weeks successively in a newspaper of general
	39	+	6 circulation in the county where such hearing is to be held.
	40	+	7 If, as the result of such hearing, the Department shall
	41	+	8 determine that the original packages of cigarettes seized were
	42	+	9 at the time of seizure contraband cigarettes, or that any
	43	+	10 cigarette vending device at the time of its seizure contained
	44	+	11 original packages of contraband cigarettes, or upon receipt of
	45	+	12 a properly executed waiver and consent to forfeiture as
	46	+	13 provided in this Section, the Department shall enter an order
	47	+	14 declaring such original packages of cigarettes or such
	48	+	15 cigarette vending devices confiscated and forfeited to the
	49	+	16 State, and to be held by the Department for disposal by it as
	50	+	17 provided in Section 21 of this Act. The Department shall give
	51	+	18 notice of such order to the owner of such property if the owner
	52	+	19 he is known, and also to the person in whose possession the
	53	+	20 property so taken was found, if such person is known and if
	54	+	21 such person in possession is not the owner of said property. In
	55	+	22 case neither the owner nor the person in possession of such
	56	+	23 property is known, the Department shall cause publication of
	57	+	24 such order to be made at least once in each week for 3 weeks
	58	+	25 successively in a newspaper of general circulation in the
	59	+	26 county where such hearing was held.
59	60
60	61
61		-	(Source: P.A. 96-782, eff. 1-1-10.)
62		-	Section 10. The Cigarette Use Tax Act is amended by
63		-	changing Section 25 as follows:
64		-	(35 ILCS 135/25) (from Ch. 120, par. 453.55)
65		-	Sec. 25. After seizing any original packages of
66		-	cigarettes, or cigarette vending devices, as provided in
67		-	Section 24 of this Act, the Department shall hold a hearing and
68		-	shall determine whether such original packages of cigarettes,
69		-	at the time of their seizure by the Department, were
70		-	contraband cigarettes or whether such cigarette vending
71		-	devices, at the time of their seizure by the Department,
72		-	contained original packages of contraband cigarettes. The
73		-	Department is not required to hold such a hearing if a waiver
74		-	and consent to forfeiture has been executed by the owner of the
75		-	property, if the owner is known, and by the person in whose
76		-	possession the property so taken was found, if that person is
77		-	known and if that person is not the owner of the property. The
78		-	Department shall give not less than 7 days' notice of the time
79		-	and place of such hearing to the owner of such property if the
80		-	owner he is known, and also to the person in whose possession
81		-	the property so taken was found, if such person is known and if
82		-	such person in possession is not the owner of said property. In
83		-	case neither the owner nor the person in possession of such
84		-	property is known, the Department shall cause publication of
85	62
86	63
87		-	the time and place of such hearing to be made at least once in
88		-	each week for 3 weeks successively in a newspaper of general
89		-	circulation in the county where such hearing is to be held.
90		-	If, as the result of such hearing, the Department shall
91		-	determine that the original packages of cigarettes seized were
92		-	at the time of seizure contraband cigarettes, or that any
93		-	cigarette vending device at the time of its seizure contained
94		-	original packages of contraband cigarettes, or upon receipt of
95		-	a properly executed waiver and consent to forfeiture as
96		-	provided in this Section, the Department shall enter an order
97		-	declaring such original packages of cigarettes or such
98		-	cigarette vending devices confiscated and forfeited to the
99		-	State, and to be held by the Department for disposal by it as
100		-	provided in Section 27 of this Act. The Department shall give
101		-	notice of such order to the owner of such property if the owner
102		-	he is known, and also to the person in whose possession the
103		-	property so taken was found, if such person is known and if
104		-	such person in possession is not the owner of said property. In
105		-	case neither the owner nor the person in possession of such
106		-	property is known, the Department shall cause publication of
107		-	such order to be made at least once in each week for 3 weeks
108		-	successively in a newspaper of general circulation in the
109		-	county where such hearing was held.
110		-	(Source: P.A. 96-782, eff. 1-1-10.)
111		-	Section 15. The Tobacco Products Tax Act of 1995 is
	64	+
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112	66
113	67
114		-	amended by changing Section 10-5, 10-20, and 10-56 as follows:
115		-	(35 ILCS 143/10-5)
116		-	Sec. 10-5. Definitions. For purposes of this Act:
117		-	"Business" means any trade, occupation, activity, or
118		-	enterprise engaged in, at any location whatsoever, for the
119		-	purpose of selling tobacco products.
120		-	"Cigarette" has the meaning ascribed to the term in
121		-	Section 1 of the Cigarette Tax Act.
122		-	"Contraband little cigar" means:
123		-	(1) packages of little cigars containing 20 or 25
124		-	little cigars that do not bear a required tax stamp under
125		-	this Act;
126		-	(2) packages of little cigars containing 20 or 25
127		-	little cigars that bear a fraudulent, imitation, or
128		-	counterfeit tax stamp;
129		-	(3) packages of little cigars containing 20 or 25
130		-	little cigars that are improperly tax stamped, including
131		-	packages of little cigars that bear only a tax stamp of
132		-	another state or taxing jurisdiction; or
133		-	(4) packages of little cigars containing other than 20
134		-	or 25 little cigars in the possession of a distributor,
135		-	retailer or wholesaler, unless the distributor, retailer,
136		-	or wholesaler possesses, or produces within the time frame
137		-	provided in Section 10-27 or 10-28 of this Act, an invoice
138		-	from a stamping distributor, distributor, or wholesaler
	68	+	SB3452 Enrolled- 3 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 3 - LRB103 37528 HLH 67651 b
	69	+	SB3452 Enrolled - 3 - LRB103 37528 HLH 67651 b
	70	+	1 (Source: P.A. 96-782, eff. 1-1-10.)
	71	+	2 Section 10. The Cigarette Use Tax Act is amended by
	72	+	3 changing Section 25 as follows:
	73	+	4 (35 ILCS 135/25) (from Ch. 120, par. 453.55)
	74	+	5 Sec. 25. After seizing any original packages of
	75	+	6 cigarettes, or cigarette vending devices, as provided in
	76	+	7 Section 24 of this Act, the Department shall hold a hearing and
	77	+	8 shall determine whether such original packages of cigarettes,
	78	+	9 at the time of their seizure by the Department, were
	79	+	10 contraband cigarettes or whether such cigarette vending
	80	+	11 devices, at the time of their seizure by the Department,
	81	+	12 contained original packages of contraband cigarettes. The
	82	+	13 Department is not required to hold such a hearing if a waiver
	83	+	14 and consent to forfeiture has been executed by the owner of the
	84	+	15 property, if the owner is known, and by the person in whose
	85	+	16 possession the property so taken was found, if that person is
	86	+	17 known and if that person is not the owner of the property. The
	87	+	18 Department shall give not less than 7 days' notice of the time
	88	+	19 and place of such hearing to the owner of such property if the
	89	+	20 owner he is known, and also to the person in whose possession
	90	+	21 the property so taken was found, if such person is known and if
	91	+	22 such person in possession is not the owner of said property. In
	92	+	23 case neither the owner nor the person in possession of such
	93	+	24 property is known, the Department shall cause publication of
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140	95
141		-	showing that the tax on the packages has been or will be
142		-	paid.
143		-	"Correctional Industries program" means a program run by a
144		-	State penal institution in which residents of the penal
145		-	institution produce tobacco products for sale to persons
146		-	incarcerated in penal institutions or resident patients of a
147		-	State operated mental health facility.
148		-	"Department" means the Illinois Department of Revenue.
149		-	"Distributor" means any of the following:
150		-	(1) Any manufacturer or wholesaler in this State
151		-	engaged in the business of selling tobacco products who
152		-	sells, exchanges, or distributes tobacco products to
153		-	retailers or consumers in this State.
154		-	(2) Any manufacturer or wholesaler engaged in the
155		-	business of selling tobacco products from without this
156		-	State who sells, exchanges, distributes, ships, or
157		-	transports tobacco products to retailers or consumers
158		-	located in this State, so long as that manufacturer or
159		-	wholesaler has or maintains within this State, directly or
160		-	by subsidiary, an office, sales house, or other place of
161		-	business, or any agent or other representative operating
162		-	within this State under the authority of the person or
163		-	subsidiary, irrespective of whether the place of business
164		-	or agent or other representative is located here
165		-	permanently or temporarily.
166		-	(3) Any retailer who receives tobacco products on
167	96
168	97
169		-	which the tax has not been or will not be paid by another
170		-	distributor.
171		-	"Distributor" does not include any person, wherever
172		-	resident or located, who makes, manufactures, or fabricates
173		-	tobacco products as part of a Correctional Industries program
174		-	for sale to residents incarcerated in penal institutions or
175		-	resident patients of a State operated mental health facility.
176		-	"Electronic cigarette" means:
177		-	(1) any device that employs a battery or other
178		-	mechanism to heat a solution or substance to produce a
179		-	vapor or aerosol intended for inhalation, except for (A)
180		-	any device designed solely for use with cannabis that
181		-	contains a statement on the retail packaging that the
182		-	device is designed solely for use with cannabis and not
183		-	for use with tobacco or (B) any device that contains a
184		-	solution or substance that contains cannabis subject to
185		-	tax under the Compassionate Use of Medical Cannabis
186		-	Program Act or the Cannabis Regulation and Tax Act;
187		-	(2) any cartridge or container of a solution or
188		-	substance intended to be used with or in the device or to
189		-	refill the device, except for any cartridge or container
190		-	of a solution or substance that contains cannabis subject
191		-	to tax under the Compassionate Use of Medical Cannabis
192		-	Program Act or the Cannabis Regulation and Tax Act; or
193		-	(3) any solution or substance, whether or not it
194		-	contains nicotine, intended for use in the device, except
	98	+
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195	100
196	101
197		-	for any solution or substance that contains cannabis
198		-	subject to tax under the Compassionate Use of Medical
199		-	Cannabis Program Act or the Cannabis Regulation and Tax
200		-	Act.
201		-	The changes made to the definition of "electronic
202		-	cigarette" by this amendatory Act of the 102nd General
203		-	Assembly apply on and after June 28, 2019, but no claim for
204		-	credit or refund is allowed on or after the effective date of
205		-	this amendatory Act of the 102nd General Assembly for such
206		-	taxes paid during the period beginning June 28, 2019 and the
207		-	effective date of this amendatory Act of the 102nd General
208		-	Assembly.
209		-	"Electronic cigarette" includes, but is not limited to,
210		-	any electronic nicotine delivery system, electronic cigar,
211		-	electronic cigarillo, electronic pipe, electronic hookah, vape
212		-	pen, or similar product or device, and any component or part
213		-	that can be used to build the product or device. "Electronic
214		-	cigarette" does not include: cigarettes, as defined in Section
215		-	1 of the Cigarette Tax Act; any product approved by the United
216		-	States Food and Drug Administration for sale as a tobacco
217		-	cessation product, a tobacco dependence product, or for other
218		-	medical purposes that is marketed and sold solely for that
219		-	approved purpose; any asthma inhaler prescribed by a physician
220		-	for that condition that is marketed and sold solely for that
221		-	approved purpose; or any therapeutic product approved for use
222		-	under the Compassionate Use of Medical Cannabis Program Act.
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	103	+	SB3452 Enrolled - 4 - LRB103 37528 HLH 67651 b
	104	+	1 the time and place of such hearing to be made at least once in
	105	+	2 each week for 3 weeks successively in a newspaper of general
	106	+	3 circulation in the county where such hearing is to be held.
	107	+	4 If, as the result of such hearing, the Department shall
	108	+	5 determine that the original packages of cigarettes seized were
	109	+	6 at the time of seizure contraband cigarettes, or that any
	110	+	7 cigarette vending device at the time of its seizure contained
	111	+	8 original packages of contraband cigarettes, or upon receipt of
	112	+	9 a properly executed waiver and consent to forfeiture as
	113	+	10 provided in this Section, the Department shall enter an order
	114	+	11 declaring such original packages of cigarettes or such
	115	+	12 cigarette vending devices confiscated and forfeited to the
	116	+	13 State, and to be held by the Department for disposal by it as
	117	+	14 provided in Section 27 of this Act. The Department shall give
	118	+	15 notice of such order to the owner of such property if the owner
	119	+	16 he is known, and also to the person in whose possession the
	120	+	17 property so taken was found, if such person is known and if
	121	+	18 such person in possession is not the owner of said property. In
	122	+	19 case neither the owner nor the person in possession of such
	123	+	20 property is known, the Department shall cause publication of
	124	+	21 such order to be made at least once in each week for 3 weeks
	125	+	22 successively in a newspaper of general circulation in the
	126	+	23 county where such hearing was held.
	127	+	24 (Source: P.A. 96-782, eff. 1-1-10.)
	128	+	25 Section 15. The Tobacco Products Tax Act of 1995 is
223	129
224	130
225		-	"Little cigar" means and includes any roll, made wholly or
226		-	in part of tobacco, where such roll has an integrated
227		-	cellulose acetate filter and weighs less than 4 pounds per
228		-	thousand and the wrapper or cover of which is made in whole or
229		-	in part of tobacco.
230		-	"Manufacturer" means any person, wherever resident or
231		-	located, who manufactures and sells tobacco products, except a
232		-	person who makes, manufactures, or fabricates tobacco products
233		-	as a part of a Correctional Industries program for sale to
234		-	persons incarcerated in penal institutions or resident
235		-	patients of a State operated mental health facility.
236		-	Beginning on January 1, 2013, "moist snuff" means any
237		-	finely cut, ground, or powdered tobacco that is not intended
238		-	to be smoked, but shall not include any finely cut, ground, or
239		-	powdered tobacco that is intended to be placed in the nasal
240		-	cavity.
241		-	"Person" means any natural individual, firm, partnership,
242		-	association, joint stock company, joint venture, limited
243		-	liability company, or public or private corporation, however
244		-	formed, or a receiver, executor, administrator, trustee,
245		-	conservator, or other representative appointed by order of any
246		-	court.
247		-	"Place of business" means and includes any place where
248		-	tobacco products are sold or where tobacco products are
249		-	manufactured, stored, or kept for the purpose of sale or
250		-	consumption, including any vessel, vehicle, airplane, train,
251	131
252	132
253		-	or vending machine.
254		-	"Prior continuous compliance taxpayer" means any person
255		-	who is licensed under this Act and who, having been a licensee
256		-	for a continuous period of 2 years, is determined by the
257		-	Department not to have been either delinquent or deficient in
258		-	the payment of tax liability during that period or otherwise
259		-	in violation of this Act. "Prior continuous compliance
260		-	taxpayer" also means any taxpayer who has, as verified by the
261		-	Department, continuously complied with the condition of his
262		-	bond or other security under provisions of this Act for a
263		-	period of 2 consecutive years. In calculating the consecutive
264		-	period of time described in this definition for qualification
265		-	as a prior continuous compliance taxpayer, a consecutive
266		-	period of time of qualifying compliance immediately prior to
267		-	the effective date of this amendatory Act of the 103rd General
268		-	Assembly shall be credited to any licensee who became licensed
269		-	on or before the effective date of this amendatory Act of the
270		-	103rd General Assembly. A distributor that is a prior
271		-	continuous compliance taxpayer and becomes a successor to a
272		-	distributor as the result of an acquisition, merger, or
273		-	consolidation of that distributor shall be deemed to be a
274		-	prior continuous compliance taxpayer with respect to the
275		-	acquired, merged, or consolidated entity.
276		-	"Retailer" means any person in this State engaged in the
277		-	business of selling tobacco products to consumers in this
278		-	State, regardless of quantity or number of sales.
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279	135
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281		-	"Sale" means any transfer, exchange, or barter in any
282		-	manner or by any means whatsoever for a consideration and
283		-	includes all sales made by persons.
284		-	"Stamp" or "stamps" mean the indicia required to be
285		-	affixed on a package of little cigars that evidence payment of
286		-	the tax on packages of little cigars containing 20 or 25 little
287		-	cigars under Section 10-10 of this Act. These stamps shall be
288		-	the same stamps used for cigarettes under the Cigarette Tax
289		-	Act.
290		-	"Stamping distributor" means a distributor licensed under
291		-	this Act and also licensed as a distributor under the
292		-	Cigarette Tax Act or Cigarette Use Tax Act.
293		-	"Tobacco products" means any cigars, including little
294		-	cigars; cheroots; stogies; periques; granulated, plug cut,
295		-	crimp cut, ready rubbed, and other smoking tobacco; snuff
296		-	(including moist snuff) or snuff flour; cavendish; plug and
297		-	twist tobacco; fine-cut and other chewing tobaccos; shorts;
298		-	refuse scraps, clippings, cuttings, and sweeping of tobacco;
299		-	and other kinds and forms of tobacco, prepared in such manner
300		-	as to be suitable for chewing or smoking in a pipe or
301		-	otherwise, or both for chewing and smoking; but does not
302		-	include cigarettes as defined in Section 1 of the Cigarette
303		-	Tax Act or tobacco purchased for the manufacture of cigarettes
304		-	by cigarette distributors and manufacturers defined in the
305		-	Cigarette Tax Act and persons who make, manufacture, or
306		-	fabricate cigarettes as a part of a Correctional Industries
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	138	+	SB3452 Enrolled - 5 - LRB103 37528 HLH 67651 b
	139	+	1 amended by changing Section 10-5, 10-20, and 10-56 as follows:
	140	+	2 (35 ILCS 143/10-5)
	141	+	3 Sec. 10-5. Definitions. For purposes of this Act:
	142	+	4 "Business" means any trade, occupation, activity, or
	143	+	5 enterprise engaged in, at any location whatsoever, for the
	144	+	6 purpose of selling tobacco products.
	145	+	7 "Cigarette" has the meaning ascribed to the term in
	146	+	8 Section 1 of the Cigarette Tax Act.
	147	+	9 "Contraband little cigar" means:
	148	+	10 (1) packages of little cigars containing 20 or 25
	149	+	11 little cigars that do not bear a required tax stamp under
	150	+	12 this Act;
	151	+	13 (2) packages of little cigars containing 20 or 25
	152	+	14 little cigars that bear a fraudulent, imitation, or
	153	+	15 counterfeit tax stamp;
	154	+	16 (3) packages of little cigars containing 20 or 25
	155	+	17 little cigars that are improperly tax stamped, including
	156	+	18 packages of little cigars that bear only a tax stamp of
	157	+	19 another state or taxing jurisdiction; or
	158	+	20 (4) packages of little cigars containing other than 20
	159	+	21 or 25 little cigars in the possession of a distributor,
	160	+	22 retailer or wholesaler, unless the distributor, retailer,
	161	+	23 or wholesaler possesses, or produces within the time frame
	162	+	24 provided in Section 10-27 or 10-28 of this Act, an invoice
	163	+	25 from a stamping distributor, distributor, or wholesaler
307	164
308	165
309		-	program for sale to residents incarcerated in penal
310		-	institutions or resident patients of a State operated mental
311		-	health facility.
312		-	Beginning on July 1, 2019, "tobacco products" also
313		-	includes electronic cigarettes.
314		-	"Wholesale price" means the established list price for
315		-	which a manufacturer sells tobacco products to a distributor,
316		-	before the allowance of any discount, trade allowance, rebate,
317		-	or other reduction. In the absence of such an established list
318		-	price, the manufacturer's invoice price at which the
319		-	manufacturer sells the tobacco product to unaffiliated
320		-	distributors, before any discounts, trade allowances, rebates,
321		-	or other reductions, shall be presumed to be the wholesale
322		-	price.
323		-	"Wholesaler" means any person, wherever resident or
324		-	located, engaged in the business of selling tobacco products
325		-	to others for the purpose of resale. "Wholesaler", when used
326		-	in this Act, does not include a person licensed as a
327		-	distributor under Section 10-20 of this Act unless expressly
328		-	stated in this Act.
329		-	(Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19;
330		-	102-40, eff. 6-25-21.)
331		-	(35 ILCS 143/10-20)
332		-	Sec. 10-20. Distributor's licenses. It shall be unlawful
333		-	for any person to engage in business as a distributor of
334	166
335	167
336		-	tobacco products within the meaning of this Act without first
337		-	having obtained a license to do so from the Department.
338		-	Application for that license shall be made to the Department
339		-	in a form prescribed and furnished by the Department. Each
340		-	applicant for a license shall furnish to the Department on a
341		-	form, signed and verified by the applicant, the following
342		-	information:
343		-	(1) The name of the applicant.
344		-	(2) The address of the location at which the applicant
345		-	proposes to engage in business as a distributor of tobacco
346		-	products.
347		-	(3) Other information the Department may reasonably
348		-	require.
349		-	Each distributor, except for a distributor who is applying
350		-	for a distributor's license under this Act for the first time
351		-	or a distributor who, in the preceding year, had less than
352		-	$50,000 of tax liability, shall also file with the Department
353		-	a bond in an amount not to exceed (i) 3 times the amount of the
354		-	distributor's average monthly tax liability or (ii) $50,000,
355		-	whichever amount is lower, on a form to be approved by the
356		-	Department. Except as otherwise provided in this Section, every
357		-	applicant who is required to procure a distributor's license
358		-	shall file with his or her application a joint and several
359		-	bond. The bond shall be executed to the Department of Revenue,
360		-	with good and sufficient surety or sureties residing or
361		-	licensed to do business within the State of Illinois,
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363	171
364		-	conditioned upon the true and faithful compliance by the
365		-	licensee with all of the provisions of this Act. The
366		-	Department shall fix the amount of the bond for each
367		-	applicant, taking into consideration the amount of money
368		-	expected to become due from the applicant under this Act. The
369		-	amount of bond required by the Department shall be an amount
370		-	that, in its opinion, will protect the State of Illinois
371		-	against failure to pay the amount that may become due from the
372		-	applicant under this Act, but the amount of the security
373		-	required by the Department shall not exceed 3 times the amount
374		-	of the applicant's average monthly tax liability, or $50,000,
375		-	whichever amount is lower. Except as otherwise provided in
376		-	this Section, the The bond, a reissue, or a substitute shall be
377		-	kept in full force and effect during the entire period covered
378		-	by the license. A separate application for license shall be
379		-	made, and bond filed, for each place of business at which a
380		-	person who is required to procure a distributor's license
381		-	proposes to engage in business as a distributor under this
382		-	Act.
383		-	The Department, upon receipt of an application and bond in
384		-	proper form, shall issue to the applicant a license, in a form
385		-	prescribed by the Department, which shall permit the applicant
386		-	to whom it is issued to engage in business as a distributor at
387		-	the place shown on his or her application. The license shall be
388		-	issued by the Department without charge or cost to the
389		-	applicant. No license issued under this Act is transferable or
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	174	+	1 showing that the tax on the packages has been or will be
	175	+	2 paid.
	176	+	3 "Correctional Industries program" means a program run by a
	177	+	4 State penal institution in which residents of the penal
	178	+	5 institution produce tobacco products for sale to persons
	179	+	6 incarcerated in penal institutions or resident patients of a
	180	+	7 State operated mental health facility.
	181	+	8 "Department" means the Illinois Department of Revenue.
	182	+	9 "Distributor" means any of the following:
	183	+	10 (1) Any manufacturer or wholesaler in this State
	184	+	11 engaged in the business of selling tobacco products who
	185	+	12 sells, exchanges, or distributes tobacco products to
	186	+	13 retailers or consumers in this State.
	187	+	14 (2) Any manufacturer or wholesaler engaged in the
	188	+	15 business of selling tobacco products from without this
	189	+	16 State who sells, exchanges, distributes, ships, or
	190	+	17 transports tobacco products to retailers or consumers
	191	+	18 located in this State, so long as that manufacturer or
	192	+	19 wholesaler has or maintains within this State, directly or
	193	+	20 by subsidiary, an office, sales house, or other place of
	194	+	21 business, or any agent or other representative operating
	195	+	22 within this State under the authority of the person or
	196	+	23 subsidiary, irrespective of whether the place of business
	197	+	24 or agent or other representative is located here
	198	+	25 permanently or temporarily.
	199	+	26 (3) Any retailer who receives tobacco products on
390	200
391	201
392		-	assignable. The license shall be conspicuously displayed in
393		-	the place of business conducted by the licensee under the
394		-	license.
395		-	The bonding requirement in this Section does not apply to
396		-	an applicant for a distributor's license who is already bonded
397		-	under the Cigarette Tax Act or the Cigarette Use Tax Act.
398		-	Licenses issued by the Department under this Act shall be
399		-	valid for a period not to exceed one year after issuance unless
400		-	sooner revoked, canceled, or suspended as provided in this
401		-	Act.
402		-	No license shall be issued to any person who is in default
403		-	to the State of Illinois for moneys due under this Act or any
404		-	other tax Act administered by the Department.
405		-	The Department shall discharge any surety and shall
406		-	release and return any bond provided to it by a taxpayer under
407		-	this Section within 90 days after:
408		-	(1) the taxpayer becomes a prior continuous compliance
409		-	taxpayer; or
410		-	(2) the taxpayer has ceased to collect receipts on
411		-	which the taxpayer is required to remit the tax under this
412		-	Act to the Department, has filed a final tax return, and
413		-	has paid to the Department an amount sufficient to
414		-	discharge his remaining tax liability as determined by the
415		-	Department under this Act.
416		-	For the purposes of item (2), the Department shall make a
417		-	final determination of the taxpayer's outstanding tax
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419	203
420		-	liability as expeditiously as possible after the taxpayer's
421		-	final tax return under this Act has been filed. If the
422		-	Department will be unable to make such a final determination
423		-	within 45 days after receiving the taxpayer's final tax
424		-	return, then the Department shall notify the taxpayer within
425		-	that 45-day period stating the reasons why it is unable to make
426		-	the final determination within that 45-day period.
427		-	The Department may, in its discretion, upon application,
428		-	authorize the payment of the tax imposed under Section 10-10
429		-	by any distributor or manufacturer not otherwise subject to
430		-	the tax imposed under this Act who, to the satisfaction of the
431		-	Department, furnishes adequate security to ensure payment of
432		-	the tax. The distributor or manufacturer shall be issued,
433		-	without charge, a license to remit the tax. When so
434		-	authorized, it shall be the duty of the distributor or
435		-	manufacturer to remit the tax imposed upon the wholesale price
436		-	of tobacco products sold or otherwise disposed of to retailers
437		-	or consumers located in this State, in the same manner and
438		-	subject to the same requirements as any other distributor or
439		-	manufacturer licensed under this Act.
440		-	The Department may revoke, suspend, or cancel the license
441		-	of a distributor of roll-your-own tobacco (as that term is
442		-	used in Section 10 of the Tobacco Product Manufacturers'
443		-	Escrow Act) under this Act if the tobacco product
444		-	manufacturer, as defined in Section 10 of the Tobacco Product
445		-	Manufacturers' Escrow Act, that made or sold the roll-your-own
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448		-	tobacco has failed to become a participating manufacturer, as
449		-	defined in subdivision (a)(1) of Section 15 of the Tobacco
450		-	Product Manufacturers' Escrow Act, or has failed to create a
451		-	qualified escrow fund for any roll-your-own tobacco
452		-	manufactured by the tobacco product manufacturer and sold in
453		-	this State or otherwise failed to bring itself into compliance
454		-	with subdivision (a)(2) of Section 15 of the Tobacco Product
455		-	Manufacturers' Escrow Act.
456		-	Any applicant applying for a distributor's license after
457		-	the applicant's distributor's license has been revoked by the
458		-	Department shall also file a bond with the Department in an
459		-	amount equal to 3 times the amount of the applicant's average
460		-	monthly tax liability under this Act, as that average monthly
461		-	tax liability was calculated immediately prior to the
462		-	revocation of the applicant's distributor's license.
463		-	Any person aggrieved by any decision of the Department
464		-	under this Section may, within 20 days after notice of that
465		-	decision, protest and request a hearing, whereupon the
466		-	Department must give notice to that person of the time and
467		-	place fixed for the hearing and must hold a hearing in
468		-	conformity with the provisions of this Act and then issue its
469		-	final administrative decision in the matter to that person. In
470		-	the absence of such a protest within 20 days, the Department's
471		-	decision becomes final without any further determination being
472		-	made or notice given.
473		-	(Source: P.A. 98-1055, eff. 1-1-16.)
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	210	+	1 which the tax has not been or will not be paid by another
	211	+	2 distributor.
	212	+	3 "Distributor" does not include any person, wherever
	213	+	4 resident or located, who makes, manufactures, or fabricates
	214	+	5 tobacco products as part of a Correctional Industries program
	215	+	6 for sale to residents incarcerated in penal institutions or
	216	+	7 resident patients of a State operated mental health facility.
	217	+	8 "Electronic cigarette" means:
	218	+	9 (1) any device that employs a battery or other
	219	+	10 mechanism to heat a solution or substance to produce a
	220	+	11 vapor or aerosol intended for inhalation, except for (A)
	221	+	12 any device designed solely for use with cannabis that
	222	+	13 contains a statement on the retail packaging that the
	223	+	14 device is designed solely for use with cannabis and not
	224	+	15 for use with tobacco or (B) any device that contains a
	225	+	16 solution or substance that contains cannabis subject to
	226	+	17 tax under the Compassionate Use of Medical Cannabis
	227	+	18 Program Act or the Cannabis Regulation and Tax Act;
	228	+	19 (2) any cartridge or container of a solution or
	229	+	20 substance intended to be used with or in the device or to
	230	+	21 refill the device, except for any cartridge or container
	231	+	22 of a solution or substance that contains cannabis subject
	232	+	23 to tax under the Compassionate Use of Medical Cannabis
	233	+	24 Program Act or the Cannabis Regulation and Tax Act; or
	234	+	25 (3) any solution or substance, whether or not it
	235	+	26 contains nicotine, intended for use in the device, except
474	236
475	237
476		-	(35 ILCS 143/10-56)
477		-	Sec. 10-56. Seizure and forfeiture. After seizing any
478		-	tobacco products or vending devices, as provided in Section
479		-	10-55, the Department must hold a hearing and determine
480		-	whether the distributor or retailer was properly licensed to
481		-	sell the tobacco products at the time of their seizure by the
482		-	Department. The Department is not required to hold such a
483		-	hearing if a waiver and consent to forfeiture has been
484		-	executed by the owner of the property, if the owner is known,
485		-	and by the person in whose possession the property so taken was
486		-	found, if that person is known and if that person is not the
487		-	owner of the property. The Department shall give not less than
488		-	20 days' notice of the time and place of the hearing to the
489		-	owner of the property, if the owner is known, and also to the
490		-	person in whose possession the property was found, if that
491		-	person is known and if the person in possession is not the
492		-	owner of the property. If neither the owner nor the person in
493		-	possession of the property is known, the Department must cause
494		-	publication of the time and place of the hearing to be made at
495		-	least once in each week for 3 weeks successively in a newspaper
496		-	of general circulation in the county where the hearing is to be
497		-	held.
498		-	If, as the result of the hearing, the Department
499		-	determines that the distributor or retailer was not properly
500		-	licensed at the time the tobacco products were seized, or upon
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502	239
503		-	receipt of a properly executed waiver and consent to
504		-	forfeiture as provided in this Section, the Department must
505		-	enter an order declaring the tobacco products or vending
506		-	devices confiscated and forfeited to the State, to be held by
507		-	the Department for disposal by it as provided in Section
508		-	10-58. The Department must give notice of the order to the
509		-	owner of the property, if the owner is known, and also to the
510		-	person in whose possession the property was found, if that
511		-	person is known and if the person in possession is not the
512		-	owner of the property. If neither the owner nor the person in
513		-	possession of the property is known, the Department must cause
514		-	publication of the order to be made at least once in each week
515		-	for 3 weeks successively in a newspaper of general circulation
516		-	in the county where the hearing was held.
517		-	(Source: P.A. 92-743, eff. 7-25-02.)
518		-	Section 20. The Cannabis Regulation and Tax Act is amended
519		-	by changing Section 65-42 as follows:
520		-	(410 ILCS 705/65-42)
521		-	Sec. 65-42. Seizure and forfeiture. After seizing any
522		-	cannabis as provided in Section 65-41, the Department must
523		-	hold a hearing and determine whether the retailer was properly
524		-	registered to sell the cannabis at the time of its seizure by
525		-	the Department. The Department is not required to hold such a
526		-	hearing if a waiver and consent to forfeiture has been
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528	243
529		-	executed by the owner of the cannabis, if the owner is known,
530		-	and by the person in whose possession the cannabis so taken was
531		-	found, if that person is known and if that person is not the
532		-	owner of said cannabis. The Department shall give not less
533		-	than 20 days' notice of the time and place of the hearing to
534		-	the owner of the cannabis, if the owner is known, and also to
535		-	the person in whose possession the cannabis was found, if that
536		-	person is known and if the person in possession is not the
537		-	owner of the cannabis. If neither the owner nor the person in
538		-	possession of the cannabis is known, the Department must cause
539		-	publication of the time and place of the hearing to be made at
540		-	least once in each week for 3 weeks successively in a newspaper
541		-	of general circulation in the county where the hearing is to be
542		-	held.
543		-	If, as the result of the hearing, the Department
544		-	determines that the retailer was not properly registered at
545		-	the time the cannabis was seized, or upon receipt of a properly
546		-	executed waiver and consent to forfeiture as provided in this
547		-	Section, the Department must enter an order declaring the
548		-	cannabis confiscated and forfeited to the State, to be held by
549		-	the Department for disposal by it as provided in Section
550		-	65-43. The Department must give notice of the order to the
551		-	owner of the cannabis, if the owner is known, and also to the
552		-	person in whose possession the cannabis was found, if that
553		-	person is known and if the person in possession is not the
554		-	owner of the cannabis. If neither the owner nor the person in
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	246	+	1 for any solution or substance that contains cannabis
	247	+	2 subject to tax under the Compassionate Use of Medical
	248	+	3 Cannabis Program Act or the Cannabis Regulation and Tax
	249	+	4 Act.
	250	+	5 The changes made to the definition of "electronic
	251	+	6 cigarette" by this amendatory Act of the 102nd General
	252	+	7 Assembly apply on and after June 28, 2019, but no claim for
	253	+	8 credit or refund is allowed on or after the effective date of
	254	+	9 this amendatory Act of the 102nd General Assembly for such
	255	+	10 taxes paid during the period beginning June 28, 2019 and the
	256	+	11 effective date of this amendatory Act of the 102nd General
	257	+	12 Assembly.
	258	+	13 "Electronic cigarette" includes, but is not limited to,
	259	+	14 any electronic nicotine delivery system, electronic cigar,
	260	+	15 electronic cigarillo, electronic pipe, electronic hookah, vape
	261	+	16 pen, or similar product or device, and any component or part
	262	+	17 that can be used to build the product or device. "Electronic
	263	+	18 cigarette" does not include: cigarettes, as defined in Section
	264	+	19 1 of the Cigarette Tax Act; any product approved by the United
	265	+	20 States Food and Drug Administration for sale as a tobacco
	266	+	21 cessation product, a tobacco dependence product, or for other
	267	+	22 medical purposes that is marketed and sold solely for that
	268	+	23 approved purpose; any asthma inhaler prescribed by a physician
	269	+	24 for that condition that is marketed and sold solely for that
	270	+	25 approved purpose; or any therapeutic product approved for use
	271	+	26 under the Compassionate Use of Medical Cannabis Program Act.
555	272
556	273
557		-	possession of the cannabis is known, the Department must cause
558		-	publication of the order to be made at least once in each week
559		-	for 3 weeks successively in a newspaper of general circulation
560		-	in the county where the hearing was held.
561		-	(Source: P.A. 101-27, eff. 6-25-19.)
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	282	+	1 "Little cigar" means and includes any roll, made wholly or
	283	+	2 in part of tobacco, where such roll has an integrated
	284	+	3 cellulose acetate filter and weighs less than 4 pounds per
	285	+	4 thousand and the wrapper or cover of which is made in whole or
	286	+	5 in part of tobacco.
	287	+	6 "Manufacturer" means any person, wherever resident or
	288	+	7 located, who manufactures and sells tobacco products, except a
	289	+	8 person who makes, manufactures, or fabricates tobacco products
	290	+	9 as a part of a Correctional Industries program for sale to
	291	+	10 persons incarcerated in penal institutions or resident
	292	+	11 patients of a State operated mental health facility.
	293	+	12 Beginning on January 1, 2013, "moist snuff" means any
	294	+	13 finely cut, ground, or powdered tobacco that is not intended
	295	+	14 to be smoked, but shall not include any finely cut, ground, or
	296	+	15 powdered tobacco that is intended to be placed in the nasal
	297	+	16 cavity.
	298	+	17 "Person" means any natural individual, firm, partnership,
	299	+	18 association, joint stock company, joint venture, limited
	300	+	19 liability company, or public or private corporation, however
	301	+	20 formed, or a receiver, executor, administrator, trustee,
	302	+	21 conservator, or other representative appointed by order of any
	303	+	22 court.
	304	+	23 "Place of business" means and includes any place where
	305	+	24 tobacco products are sold or where tobacco products are
	306	+	25 manufactured, stored, or kept for the purpose of sale or
	307	+	26 consumption, including any vessel, vehicle, airplane, train,
	308	+
	309	+
	310	+
	311	+
	312	+
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	318	+	1 or vending machine.
	319	+	2 "Prior continuous compliance taxpayer" means any person
	320	+	3 who is licensed under this Act and who, having been a licensee
	321	+	4 for a continuous period of 2 years, is determined by the
	322	+	5 Department not to have been either delinquent or deficient in
	323	+	6 the payment of tax liability during that period or otherwise
	324	+	7 in violation of this Act. "Prior continuous compliance
	325	+	8 taxpayer" also means any taxpayer who has, as verified by the
	326	+	9 Department, continuously complied with the condition of his
	327	+	10 bond or other security under provisions of this Act for a
	328	+	11 period of 2 consecutive years. In calculating the consecutive
	329	+	12 period of time described in this definition for qualification
	330	+	13 as a prior continuous compliance taxpayer, a consecutive
	331	+	14 period of time of qualifying compliance immediately prior to
	332	+	15 the effective date of this amendatory Act of the 103rd General
	333	+	16 Assembly shall be credited to any licensee who became licensed
	334	+	17 on or before the effective date of this amendatory Act of the
	335	+	18 103rd General Assembly. A distributor that is a prior
	336	+	19 continuous compliance taxpayer and becomes a successor to a
	337	+	20 distributor as the result of an acquisition, merger, or
	338	+	21 consolidation of that distributor shall be deemed to be a
	339	+	22 prior continuous compliance taxpayer with respect to the
	340	+	23 acquired, merged, or consolidated entity.
	341	+	24 "Retailer" means any person in this State engaged in the
	342	+	25 business of selling tobacco products to consumers in this
	343	+	26 State, regardless of quantity or number of sales.
	344	+
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	354	+	1 "Sale" means any transfer, exchange, or barter in any
	355	+	2 manner or by any means whatsoever for a consideration and
	356	+	3 includes all sales made by persons.
	357	+	4 "Stamp" or "stamps" mean the indicia required to be
	358	+	5 affixed on a package of little cigars that evidence payment of
	359	+	6 the tax on packages of little cigars containing 20 or 25 little
	360	+	7 cigars under Section 10-10 of this Act. These stamps shall be
	361	+	8 the same stamps used for cigarettes under the Cigarette Tax
	362	+	9 Act.
	363	+	10 "Stamping distributor" means a distributor licensed under
	364	+	11 this Act and also licensed as a distributor under the
	365	+	12 Cigarette Tax Act or Cigarette Use Tax Act.
	366	+	13 "Tobacco products" means any cigars, including little
	367	+	14 cigars; cheroots; stogies; periques; granulated, plug cut,
	368	+	15 crimp cut, ready rubbed, and other smoking tobacco; snuff
	369	+	16 (including moist snuff) or snuff flour; cavendish; plug and
	370	+	17 twist tobacco; fine-cut and other chewing tobaccos; shorts;
	371	+	18 refuse scraps, clippings, cuttings, and sweeping of tobacco;
	372	+	19 and other kinds and forms of tobacco, prepared in such manner
	373	+	20 as to be suitable for chewing or smoking in a pipe or
	374	+	21 otherwise, or both for chewing and smoking; but does not
	375	+	22 include cigarettes as defined in Section 1 of the Cigarette
	376	+	23 Tax Act or tobacco purchased for the manufacture of cigarettes
	377	+	24 by cigarette distributors and manufacturers defined in the
	378	+	25 Cigarette Tax Act and persons who make, manufacture, or
	379	+	26 fabricate cigarettes as a part of a Correctional Industries
	380	+
	381	+
	382	+
	383	+
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	390	+	1 program for sale to residents incarcerated in penal
	391	+	2 institutions or resident patients of a State operated mental
	392	+	3 health facility.
	393	+	4 Beginning on July 1, 2019, "tobacco products" also
	394	+	5 includes electronic cigarettes.
	395	+	6 "Wholesale price" means the established list price for
	396	+	7 which a manufacturer sells tobacco products to a distributor,
	397	+	8 before the allowance of any discount, trade allowance, rebate,
	398	+	9 or other reduction. In the absence of such an established list
	399	+	10 price, the manufacturer's invoice price at which the
	400	+	11 manufacturer sells the tobacco product to unaffiliated
	401	+	12 distributors, before any discounts, trade allowances, rebates,
	402	+	13 or other reductions, shall be presumed to be the wholesale
	403	+	14 price.
	404	+	15 "Wholesaler" means any person, wherever resident or
	405	+	16 located, engaged in the business of selling tobacco products
	406	+	17 to others for the purpose of resale. "Wholesaler", when used
	407	+	18 in this Act, does not include a person licensed as a
	408	+	19 distributor under Section 10-20 of this Act unless expressly
	409	+	20 stated in this Act.
	410	+	21 (Source: P.A. 101-31, eff. 6-28-19; 101-593, eff. 12-4-19;
	411	+	22 102-40, eff. 6-25-21.)
	412	+	23 (35 ILCS 143/10-20)
	413	+	24 Sec. 10-20. Distributor's licenses. It shall be unlawful
	414	+	25 for any person to engage in business as a distributor of
	415	+
	416	+
	417	+
	418	+
	419	+
	420	+	SB3452 Enrolled - 12 - LRB103 37528 HLH 67651 b
	421	+
	422	+
	423	+	SB3452 Enrolled- 13 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 13 - LRB103 37528 HLH 67651 b
	424	+	SB3452 Enrolled - 13 - LRB103 37528 HLH 67651 b
	425	+	1 tobacco products within the meaning of this Act without first
	426	+	2 having obtained a license to do so from the Department.
	427	+	3 Application for that license shall be made to the Department
	428	+	4 in a form prescribed and furnished by the Department. Each
	429	+	5 applicant for a license shall furnish to the Department on a
	430	+	6 form, signed and verified by the applicant, the following
	431	+	7 information:
	432	+	8 (1) The name of the applicant.
	433	+	9 (2) The address of the location at which the applicant
	434	+	10 proposes to engage in business as a distributor of tobacco
	435	+	11 products.
	436	+	12 (3) Other information the Department may reasonably
	437	+	13 require.
	438	+	14 Each distributor, except for a distributor who is applying
	439	+	15 for a distributor's license under this Act for the first time
	440	+	16 or a distributor who, in the preceding year, had less than
	441	+	17 $50,000 of tax liability, shall also file with the Department
	442	+	18 a bond in an amount not to exceed (i) 3 times the amount of the
	443	+	19 distributor's average monthly tax liability or (ii) $50,000,
	444	+	20 whichever amount is lower, on a form to be approved by the
	445	+	21 Department. Except as otherwise provided in this Section, every
	446	+	22 applicant who is required to procure a distributor's license
	447	+	23 shall file with his or her application a joint and several
	448	+	24 bond. The bond shall be executed to the Department of Revenue,
	449	+	25 with good and sufficient surety or sureties residing or
	450	+	26 licensed to do business within the State of Illinois,
	451	+
	452	+
	453	+
	454	+
	455	+
	456	+	SB3452 Enrolled - 13 - LRB103 37528 HLH 67651 b
	457	+
	458	+
	459	+	SB3452 Enrolled- 14 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 14 - LRB103 37528 HLH 67651 b
	460	+	SB3452 Enrolled - 14 - LRB103 37528 HLH 67651 b
	461	+	1 conditioned upon the true and faithful compliance by the
	462	+	2 licensee with all of the provisions of this Act. The
	463	+	3 Department shall fix the amount of the bond for each
	464	+	4 applicant, taking into consideration the amount of money
	465	+	5 expected to become due from the applicant under this Act. The
	466	+	6 amount of bond required by the Department shall be an amount
	467	+	7 that, in its opinion, will protect the State of Illinois
	468	+	8 against failure to pay the amount that may become due from the
	469	+	9 applicant under this Act, but the amount of the security
	470	+	10 required by the Department shall not exceed 3 times the amount
	471	+	11 of the applicant's average monthly tax liability, or $50,000,
	472	+	12 whichever amount is lower. Except as otherwise provided in
	473	+	13 this Section, the The bond, a reissue, or a substitute shall be
	474	+	14 kept in full force and effect during the entire period covered
	475	+	15 by the license. A separate application for license shall be
	476	+	16 made, and bond filed, for each place of business at which a
	477	+	17 person who is required to procure a distributor's license
	478	+	18 proposes to engage in business as a distributor under this
	479	+	19 Act.
	480	+	20 The Department, upon receipt of an application and bond in
	481	+	21 proper form, shall issue to the applicant a license, in a form
	482	+	22 prescribed by the Department, which shall permit the applicant
	483	+	23 to whom it is issued to engage in business as a distributor at
	484	+	24 the place shown on his or her application. The license shall be
	485	+	25 issued by the Department without charge or cost to the
	486	+	26 applicant. No license issued under this Act is transferable or
	487	+
	488	+
	489	+
	490	+
	491	+
	492	+	SB3452 Enrolled - 14 - LRB103 37528 HLH 67651 b
	493	+
	494	+
	495	+	SB3452 Enrolled- 15 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 15 - LRB103 37528 HLH 67651 b
	496	+	SB3452 Enrolled - 15 - LRB103 37528 HLH 67651 b
	497	+	1 assignable. The license shall be conspicuously displayed in
	498	+	2 the place of business conducted by the licensee under the
	499	+	3 license.
	500	+	4 The bonding requirement in this Section does not apply to
	501	+	5 an applicant for a distributor's license who is already bonded
	502	+	6 under the Cigarette Tax Act or the Cigarette Use Tax Act.
	503	+	7 Licenses issued by the Department under this Act shall be
	504	+	8 valid for a period not to exceed one year after issuance unless
	505	+	9 sooner revoked, canceled, or suspended as provided in this
	506	+	10 Act.
	507	+	11 No license shall be issued to any person who is in default
	508	+	12 to the State of Illinois for moneys due under this Act or any
	509	+	13 other tax Act administered by the Department.
	510	+	14 The Department shall discharge any surety and shall
	511	+	15 release and return any bond provided to it by a taxpayer under
	512	+	16 this Section within 90 days after:
	513	+	17 (1) the taxpayer becomes a prior continuous compliance
	514	+	18 taxpayer; or
	515	+	19 (2) the taxpayer has ceased to collect receipts on
	516	+	20 which the taxpayer is required to remit the tax under this
	517	+	21 Act to the Department, has filed a final tax return, and
	518	+	22 has paid to the Department an amount sufficient to
	519	+	23 discharge his remaining tax liability as determined by the
	520	+	24 Department under this Act.
	521	+	25 For the purposes of item (2), the Department shall make a
	522	+	26 final determination of the taxpayer's outstanding tax
	523	+
	524	+
	525	+
	526	+
	527	+
	528	+	SB3452 Enrolled - 15 - LRB103 37528 HLH 67651 b
	529	+
	530	+
	531	+	SB3452 Enrolled- 16 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 16 - LRB103 37528 HLH 67651 b
	532	+	SB3452 Enrolled - 16 - LRB103 37528 HLH 67651 b
	533	+	1 liability as expeditiously as possible after the taxpayer's
	534	+	2 final tax return under this Act has been filed. If the
	535	+	3 Department will be unable to make such a final determination
	536	+	4 within 45 days after receiving the taxpayer's final tax
	537	+	5 return, then the Department shall notify the taxpayer within
	538	+	6 that 45-day period stating the reasons why it is unable to make
	539	+	7 the final determination within that 45-day period.
	540	+	8 The Department may, in its discretion, upon application,
	541	+	9 authorize the payment of the tax imposed under Section 10-10
	542	+	10 by any distributor or manufacturer not otherwise subject to
	543	+	11 the tax imposed under this Act who, to the satisfaction of the
	544	+	12 Department, furnishes adequate security to ensure payment of
	545	+	13 the tax. The distributor or manufacturer shall be issued,
	546	+	14 without charge, a license to remit the tax. When so
	547	+	15 authorized, it shall be the duty of the distributor or
	548	+	16 manufacturer to remit the tax imposed upon the wholesale price
	549	+	17 of tobacco products sold or otherwise disposed of to retailers
	550	+	18 or consumers located in this State, in the same manner and
	551	+	19 subject to the same requirements as any other distributor or
	552	+	20 manufacturer licensed under this Act.
	553	+	21 The Department may revoke, suspend, or cancel the license
	554	+	22 of a distributor of roll-your-own tobacco (as that term is
	555	+	23 used in Section 10 of the Tobacco Product Manufacturers'
	556	+	24 Escrow Act) under this Act if the tobacco product
	557	+	25 manufacturer, as defined in Section 10 of the Tobacco Product
	558	+	26 Manufacturers' Escrow Act, that made or sold the roll-your-own
	559	+
	560	+
	561	+
	562	+
	563	+
	564	+	SB3452 Enrolled - 16 - LRB103 37528 HLH 67651 b
	565	+
	566	+
	567	+	SB3452 Enrolled- 17 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 17 - LRB103 37528 HLH 67651 b
	568	+	SB3452 Enrolled - 17 - LRB103 37528 HLH 67651 b
	569	+	1 tobacco has failed to become a participating manufacturer, as
	570	+	2 defined in subdivision (a)(1) of Section 15 of the Tobacco
	571	+	3 Product Manufacturers' Escrow Act, or has failed to create a
	572	+	4 qualified escrow fund for any roll-your-own tobacco
	573	+	5 manufactured by the tobacco product manufacturer and sold in
	574	+	6 this State or otherwise failed to bring itself into compliance
	575	+	7 with subdivision (a)(2) of Section 15 of the Tobacco Product
	576	+	8 Manufacturers' Escrow Act.
	577	+	9 Any applicant applying for a distributor's license after
	578	+	10 the applicant's distributor's license has been revoked by the
	579	+	11 Department shall also file a bond with the Department in an
	580	+	12 amount equal to 3 times the amount of the applicant's average
	581	+	13 monthly tax liability under this Act, as that average monthly
	582	+	14 tax liability was calculated immediately prior to the
	583	+	15 revocation of the applicant's distributor's license.
	584	+	16 Any person aggrieved by any decision of the Department
	585	+	17 under this Section may, within 20 days after notice of that
	586	+	18 decision, protest and request a hearing, whereupon the
	587	+	19 Department must give notice to that person of the time and
	588	+	20 place fixed for the hearing and must hold a hearing in
	589	+	21 conformity with the provisions of this Act and then issue its
	590	+	22 final administrative decision in the matter to that person. In
	591	+	23 the absence of such a protest within 20 days, the Department's
	592	+	24 decision becomes final without any further determination being
	593	+	25 made or notice given.
	594	+	26 (Source: P.A. 98-1055, eff. 1-1-16.)
	595	+
	596	+
	597	+
	598	+
	599	+
	600	+	SB3452 Enrolled - 17 - LRB103 37528 HLH 67651 b
	601	+
	602	+
	603	+	SB3452 Enrolled- 18 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 18 - LRB103 37528 HLH 67651 b
	604	+	SB3452 Enrolled - 18 - LRB103 37528 HLH 67651 b
	605	+	1 (35 ILCS 143/10-56)
	606	+	2 Sec. 10-56. Seizure and forfeiture. After seizing any
	607	+	3 tobacco products or vending devices, as provided in Section
	608	+	4 10-55, the Department must hold a hearing and determine
	609	+	5 whether the distributor or retailer was properly licensed to
	610	+	6 sell the tobacco products at the time of their seizure by the
	611	+	7 Department. The Department is not required to hold such a
	612	+	8 hearing if a waiver and consent to forfeiture has been
	613	+	9 executed by the owner of the property, if the owner is known,
	614	+	10 and by the person in whose possession the property so taken was
	615	+	11 found, if that person is known and if that person is not the
	616	+	12 owner of the property. The Department shall give not less than
	617	+	13 20 days' notice of the time and place of the hearing to the
	618	+	14 owner of the property, if the owner is known, and also to the
	619	+	15 person in whose possession the property was found, if that
	620	+	16 person is known and if the person in possession is not the
	621	+	17 owner of the property. If neither the owner nor the person in
	622	+	18 possession of the property is known, the Department must cause
	623	+	19 publication of the time and place of the hearing to be made at
	624	+	20 least once in each week for 3 weeks successively in a newspaper
	625	+	21 of general circulation in the county where the hearing is to be
	626	+	22 held.
	627	+	23 If, as the result of the hearing, the Department
	628	+	24 determines that the distributor or retailer was not properly
	629	+	25 licensed at the time the tobacco products were seized, or upon
	630	+
	631	+
	632	+
	633	+
	634	+
	635	+	SB3452 Enrolled - 18 - LRB103 37528 HLH 67651 b
	636	+
	637	+
	638	+	SB3452 Enrolled- 19 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 19 - LRB103 37528 HLH 67651 b
	639	+	SB3452 Enrolled - 19 - LRB103 37528 HLH 67651 b
	640	+	1 receipt of a properly executed waiver and consent to
	641	+	2 forfeiture as provided in this Section, the Department must
	642	+	3 enter an order declaring the tobacco products or vending
	643	+	4 devices confiscated and forfeited to the State, to be held by
	644	+	5 the Department for disposal by it as provided in Section
	645	+	6 10-58. The Department must give notice of the order to the
	646	+	7 owner of the property, if the owner is known, and also to the
	647	+	8 person in whose possession the property was found, if that
	648	+	9 person is known and if the person in possession is not the
	649	+	10 owner of the property. If neither the owner nor the person in
	650	+	11 possession of the property is known, the Department must cause
	651	+	12 publication of the order to be made at least once in each week
	652	+	13 for 3 weeks successively in a newspaper of general circulation
	653	+	14 in the county where the hearing was held.
	654	+	15 (Source: P.A. 92-743, eff. 7-25-02.)
	655	+	16 Section 20. The Cannabis Regulation and Tax Act is amended
	656	+	17 by changing Section 65-42 as follows:
	657	+	18 (410 ILCS 705/65-42)
	658	+	19 Sec. 65-42. Seizure and forfeiture. After seizing any
	659	+	20 cannabis as provided in Section 65-41, the Department must
	660	+	21 hold a hearing and determine whether the retailer was properly
	661	+	22 registered to sell the cannabis at the time of its seizure by
	662	+	23 the Department. The Department is not required to hold such a
	663	+	24 hearing if a waiver and consent to forfeiture has been
	664	+
	665	+
	666	+
	667	+
	668	+
	669	+	SB3452 Enrolled - 19 - LRB103 37528 HLH 67651 b
	670	+
	671	+
	672	+	SB3452 Enrolled- 20 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 20 - LRB103 37528 HLH 67651 b
	673	+	SB3452 Enrolled - 20 - LRB103 37528 HLH 67651 b
	674	+	1 executed by the owner of the cannabis, if the owner is known,
	675	+	2 and by the person in whose possession the cannabis so taken was
	676	+	3 found, if that person is known and if that person is not the
	677	+	4 owner of said cannabis. The Department shall give not less
	678	+	5 than 20 days' notice of the time and place of the hearing to
	679	+	6 the owner of the cannabis, if the owner is known, and also to
	680	+	7 the person in whose possession the cannabis was found, if that
	681	+	8 person is known and if the person in possession is not the
	682	+	9 owner of the cannabis. If neither the owner nor the person in
	683	+	10 possession of the cannabis is known, the Department must cause
	684	+	11 publication of the time and place of the hearing to be made at
	685	+	12 least once in each week for 3 weeks successively in a newspaper
	686	+	13 of general circulation in the county where the hearing is to be
	687	+	14 held.
	688	+	15 If, as the result of the hearing, the Department
	689	+	16 determines that the retailer was not properly registered at
	690	+	17 the time the cannabis was seized, or upon receipt of a properly
	691	+	18 executed waiver and consent to forfeiture as provided in this
	692	+	19 Section, the Department must enter an order declaring the
	693	+	20 cannabis confiscated and forfeited to the State, to be held by
	694	+	21 the Department for disposal by it as provided in Section
	695	+	22 65-43. The Department must give notice of the order to the
	696	+	23 owner of the cannabis, if the owner is known, and also to the
	697	+	24 person in whose possession the cannabis was found, if that
	698	+	25 person is known and if the person in possession is not the
	699	+	26 owner of the cannabis. If neither the owner nor the person in
	700	+
	701	+
	702	+
	703	+
	704	+
	705	+	SB3452 Enrolled - 20 - LRB103 37528 HLH 67651 b
	706	+
	707	+
	708	+	SB3452 Enrolled- 21 -LRB103 37528 HLH 67651 b SB3452 Enrolled - 21 - LRB103 37528 HLH 67651 b
	709	+	SB3452 Enrolled - 21 - LRB103 37528 HLH 67651 b
	710	+	1 possession of the cannabis is known, the Department must cause
	711	+	2 publication of the order to be made at least once in each week
	712	+	3 for 3 weeks successively in a newspaper of general circulation
	713	+	4 in the county where the hearing was held.
	714	+	5 (Source: P.A. 101-27, eff. 6-25-19.)
	715	+
	716	+
	717	+
	718	+
	719	+
	720	+	SB3452 Enrolled - 21 - LRB103 37528 HLH 67651 b