Ill. Admin. Code tit. 86, § 450.30 - Licenses and Permits - Bonds
a) Any
distributor maintaining a place of business in this State is required to be
licensed as a distributor under the Act, provided that the distributor need not
obtain the license if a distributor is required to procure a license or allowed
to obtain a permit as a distributor under the Cigarette Tax Act.
"Distributor maintaining a place of business in this State" means any
distributor having or maintaining within this State, directly or by a
subsidiary, an office, distribution house, sales house, warehouse or other
place of business, or any agent operating within this State under the authority
of the distributor or its subsidiary, irrespective of whether the place of
business or agent is located here permanently or temporarily, or whether the
distributor or subsidiary is licensed to transact business within this
State. (Section 1 of the Act) The distributor must apply for a license
on a form prescribed by the Department and must accompany the application with
a joint and several bond. The amount of the bond shall be $2,500.
b) Except when the applicant is the
manufacturer, no distributor's license shall be issued to an applicant unless
he or she presents the Department with satisfactory proof in writing that he or
she will be able to buy cigarettes directly from at least 3 major cigarette
manufacturers. A separate application for license shall be made, and bond
filed, for each place of business at or from which the applicant proposes to
act as a distributor under the Act and for which the applicant is not required
to procure a license or allowed to obtain a permit as a distributor under the
Cigarette Tax Act. Any license issued shall permit the applicant to engage in
business as a distributor at or from the place shown in his or her application.
All licenses issued by the Department under the Act shall be valid for not to
exceed one year after issuance unless sooner revoked, canceled or suspended as
provided in the Act.
c) The annual
license fee payable to the Department for each distributor's license shall be
$250. The purpose of the annual license fee is to defray the cost, to the
Department, of serializing cigarette tax stamps. The applicant for license
shall pay the fee to the Department at the time of submitting the application
for license to the Department.
d) A
license shall not be transferable or assignable. Every such license shall be
conspicuously displayed at the place of business for which it is issued.
Licenses issued under the Act are subject to suspension, revocation or
cancellation under the conditions prescribed in Section 6 of the Act.
e) The Department may, in its discretion,
upon application, issue permits authorizing the collection of the tax imposed
by those out-of-state cigarette manufacturers who are not required to be
licensed as distributors of cigarettes in this State, but who elect to qualify
under this Act as distributors of cigarettes in this State, and who, to the
satisfaction of the Department, furnish adequate security to insure collection
and payment of the tax, provided that any permit shall extend only to
cigarettes that the permittee-manufacturer places in original packages that are
contained inside a sealed transparent wrapper, and provided that no permit
shall be issued under the Act to a manufacturer who has obtained the permit
provided for in Section 4b of the Cigarette Tax Act. The distributor shall be
issued, without charge, a permit to collect the tax in a manner, and subject to
reasonable regulations and agreements as the Department shall prescribe. When
so authorized, it shall be the duty of the distributor to collect the tax upon
all cigarettes he or she delivers (or causes to be delivered) within this State
to purchasers, in the same manner and subject to the same requirements as a
distributor maintaining a place of business within this State. The permit shall
be in the form the Department may prescribe and shall not be transferable or
assignable. The authority and permit may be suspended, canceled or revoked
when, at any time, the Department considers that the security given is
inadequate, or that the tax can more effectively be collected from the person
using the cigarettes in this State or through distributors located in this
State, or whenever the permittee violates any provision of the Act or this
Part, or whenever the permittee shall notify the Department in writing of his
or her desire to have the permit canceled. The Department shall have the power,
in its discretion, to issue a new permit after the suspension, cancellation or
revocation.
f) All permits issued
by the Department under the Act shall be valid for not to exceed one year after
issuance unless sooner revoked, canceled or suspended, as provided in the
Act.
g)
The following are
ineligible to receive a distributor's license or permit under the Act:
1)
A person who is not of good
character and reputation in the community in which he or she
resides;
2)
a
person who has been convicted of a felony under any federal or State law, if
the Department, after investigation and a hearing, if requested by the
applicant, determines that the person has not been sufficiently rehabilitated
to warrant the public trust;
3)
a corporation, if any officer,
manager or director thereof, or any stockholder or stockholders owning in the
aggregate more than 5% of the stock of the corporation, would not be eligible
to receive a license under this Part for any
reason.
4)
a
person, or any person who owns more than 15 percent of the ownership interests
in a person or a related party who:
A)
owes, at the time of application,
any delinquent cigarette taxes that have been determined by law to be due and
unpaid, unless the license applicant has entered into an agreement approved by
the Department to pay the amount due;
B)
had a license under the Act
revoked within the past 2 years by the Department for misconduct relating to
stolen or contraband cigarettes or has been convicted of a State or federal
crime, punishable by imprisonment of one year or more, relating to stolen or
contraband cigarettes;
C)
manufactures cigarettes, whether in this State or out of this State,
and who is neither:
i)
a
participating manufacturer as defined in subsection II(jj) of the "Master
Settlement Agreement" as defined in Section 10 of the Tobacco Products
Manufacturers' Escrow Act [ 30 ILCS 168 ];
nor
ii)
in full
compliance with the Tobacco Products Manufacturers' Escrow Act and the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003 [ 30 ILCS 167
];
D)
has been
found by the Department, after notice and a hearing, to have imported or caused
to be imported into the United States for sale or distribution any cigarette in
violation of
19
USC 1681a;
E)
has been found by the Department,
after notice and a hearing, to have imported or caused to be imported into the
United States for sale or distribution or manufactured for sale or distribution
in the United States any cigarette that does not fully comply with the Federal
Cigarette Labeling and Advertising Act (
15 USC
1331 ); or
F)
has been found by the Department,
after notice and a hearing, to have made a material false statement in the
application or has failed to produce records required to be maintained by the
Act. (Section 4 of the Cigarette Use Tax Act)
Notes
Amended at 27 Ill. Reg. 1647, effective January 15, 2003
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