Bill > HB1582

This bill amends two tobacco-related laws to strengthen enforcement and financial accountability for tobacco product manufacturers. For the Tobacco Products Manufacturers' Escrow Enforcement Act, the bill introduces a new procedure where if a distributor fails to submit required information, the Attorney General can send a violation notice with 10 days to remedy the issue. If the distributor does not cure the violation within that timeframe, the Attorney General can notify the Director of Revenue, who will then be required to revoke the distributor's license. In the Tobacco Product Manufacturers' Escrow Act, the bill adds provisions allowing manufacturers who place funds into escrow to make an irrevocable assignment of their interest in those funds to the state. This assignment would be permanent and cover all current and future funds in the escrow account, including interest. The assigned funds can be withdrawn by the state to reimburse Medicaid costs and will be calculated as a credit against potential legal judgments or settlements. Additionally, the bill provides a mechanism for the Attorney General to transfer escrow funds to the state if no application for release has been made by the manufacturer after more than one year, following a specific notice procedure. These changes aim to enhance state oversight and financial recovery related to tobacco product sales and manufacturers.

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https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1582&GAID=18&DocTypeID=HB&SessionID=114&GA=104