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The new law will come into force on July 1st. It aims to reduce tobacco use among teens and young adults by preventing them from getting started, said Pritzker and state lawmakers who attended the signing of the bill Sunday.
Chicago raised the age of tobacco in 2016, according to what Pritzker called a model of legislation at the state level.
"We are dealing with an old problem in a new form," said Pritzker.
"And while all our residents have the right to make that choice on their own, we need to be realistic about what this choice means to our youth."
Pritzker dismissed concerns that the legislation would hurt companies by depriving them of income.
He called on neighboring states to adopt similar laws to dissuade people from crossing borders. The new law does not include penalties for minor possession, but companies are subject to fines and penalties for sale to consumers under 21 years of age.
The report found that an increase in age reduced smoking initiation among 15 to 17 year olds, leading to a reduction in the prevalence of smoking.
Representative Camille Y. Lilly, who sponsored Illinois legislation, said it would save billions of dollars in health care for future generations.
The law makes it more difficult for 18-year-olds to act as "providers" for younger teens, she said.
"It takes health care to make America better," she said. "This bill moves us forward."
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