Public Act 098-0010
 
SB0724 EnrolledLRB098 04929 MGM 34959 b

    AN ACT concerning liquor.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 4-2 and 6-2 as follows:
 
    (235 ILCS 5/4-2)  (from Ch. 43, par. 111)
    Sec. 4-2. The mayor or president of the board of trustees
of each city, village or incorporated town or his or her
designee, and the president or chairman of the county board or
his or her designee, shall be the local liquor control
commissioner for their respective cities, villages,
incorporated towns and counties, and shall be charged with the
administration in their respective jurisdictions of the
appropriate provisions of this Act and of such ordinances and
resolutions relating to alcoholic liquor as may be enacted; but
the authority of the president or chairman of the county board
or his or her designee shall extend only to that area in any
county which lies outside the corporate limits of the cities,
villages and incorporated towns therein and those areas which
are owned by the county and are within the corporate limits of
the cities, villages and incorporated towns with a population
of less than 1,000,000, however, such county shall comply with
the operating rules of the municipal ordinances affected when
issuing their own licenses.
    However, such mayor, president of the board of trustees or
president or chairman of the county board or his or her
designee may appoint a person or persons to assist him in the
exercise of the powers and the performance of the duties herein
provided for such local liquor control commissioner.
    Notwithstanding any other provision of this Section to the
contrary, the mayor of a city with a population of 55,000
50,000 or less or the president of a village with a population
of 55,000 50,000 or less that has an interest in the
manufacture, sale, or distribution of alcoholic liquor must
direct the council or board over which he or she presides to
appoint, by majority vote, a person other than him or her to
serve as the local liquor control commissioner. The appointment
must be made within 30 days from the day on which the mayor or
president takes office, and the mayor or president cannot make
nominations or serve any other role in the appointment. To
prevent any conflict of interest, the mayor or president with
the interest in the manufacture, sale, or distribution of
alcoholic liquor shall not participate in any meetings,
hearings, or decisions on matters impacting the manufacture,
sale, or distribution of alcoholic liquor. Further, the
appointee (i) shall be an attorney with an active license to
practice law in the State of Illinois, (ii) shall not legally
represent liquor license applicants or holders before the
jurisdiction over which he or she presides as local liquor
control commissioner or before an adjacent jurisdiction, (iii)
shall not have an interest in the manufacture, sale, or
distribution of alcoholic liquor, and (iv) shall not be
appointed to a term to exceed the term of the mayor, president,
or members of the council or board.
(Source: P.A. 97-1059, eff. 8-24-12.)
 
    (235 ILCS 5/6-2)  (from Ch. 43, par. 120)
    Sec. 6-2. Issuance of licenses to certain persons
prohibited.
    (a) Except as otherwise provided in subsection (b) of this
Section and in paragraph (1) of subsection (a) of Section 3-12,
no license of any kind issued by the State Commission or any
local commission shall be issued to:
        (1) A person who is not a resident of any city, village
    or county in which the premises covered by the license are
    located; except in case of railroad or boat licenses.
        (2) A person who is not of good character and
    reputation in the community in which he resides.
        (3) A person who is not a citizen of the United States.
        (4) A person who has been convicted of a felony under
    any Federal or State law, unless the Commission determines
    that such person has been sufficiently rehabilitated to
    warrant the public trust after considering matters set
    forth in such person's application and the Commission's
    investigation. The burden of proof of sufficient
    rehabilitation shall be on the applicant.
        (5) A person who has been convicted of keeping a place
    of prostitution or keeping a place of juvenile
    prostitution, promoting prostitution that involves keeping
    a place of prostitution, or promoting juvenile
    prostitution that involves keeping a place of juvenile
    prostitution.
        (6) A person who has been convicted of pandering or
    other crime or misdemeanor opposed to decency and morality.
        (7) A person whose license issued under this Act has
    been revoked for cause.
        (8) A person who at the time of application for renewal
    of any license issued hereunder would not be eligible for
    such license upon a first application.
        (9) A copartnership, if any general partnership
    thereof, or any limited partnership thereof, owning more
    than 5% of the aggregate limited partner interest in such
    copartnership would not be eligible to receive a license
    hereunder for any reason other than residence within the
    political subdivision, unless residency is required by
    local ordinance.
        (10) A corporation or limited liability company, if any
    member, officer, manager or director thereof, or any
    stockholder or stockholders owning in the aggregate more
    than 5% of the stock of such corporation, would not be
    eligible to receive a license hereunder for any reason
    other than citizenship and residence within the political
    subdivision.
        (10a) A corporation or limited liability company
    unless it is incorporated or organized in Illinois, or
    unless it is a foreign corporation or foreign limited
    liability company which is qualified under the Business
    Corporation Act of 1983 or the Limited Liability Company
    Act to transact business in Illinois. The Commission shall
    permit and accept from an applicant for a license under
    this Act proof prepared from the Secretary of State's
    website that the corporation or limited liability company
    is in good standing and is qualified under the Business
    Corporation Act of 1983 or the Limited Liability Company
    Act to transact business in Illinois.
        (11) A person whose place of business is conducted by a
    manager or agent unless the manager or agent possesses the
    same qualifications required by the licensee.
        (12) A person who has been convicted of a violation of
    any Federal or State law concerning the manufacture,
    possession or sale of alcoholic liquor, subsequent to the
    passage of this Act or has forfeited his bond to appear in
    court to answer charges for any such violation.
        (13) A person who does not beneficially own the
    premises for which a license is sought, or does not have a
    lease thereon for the full period for which the license is
    to be issued.
        (14) Any law enforcing public official, including
    members of local liquor control commissions, any mayor,
    alderman, or member of the city council or commission, any
    president of the village board of trustees, any member of a
    village board of trustees, or any president or member of a
    county board; and no such official shall have a direct
    interest in the manufacture, sale, or distribution of
    alcoholic liquor, except that a license may be granted to
    such official in relation to premises that are not located
    within the territory subject to the jurisdiction of that
    official if the issuance of such license is approved by the
    State Liquor Control Commission and except that a license
    may be granted, in a city or village with a population of
    55,000 50,000 or less, to any alderman, member of a city
    council, or member of a village board of trustees in
    relation to premises that are located within the territory
    subject to the jurisdiction of that official if (i) the
    sale of alcoholic liquor pursuant to the license is
    incidental to the selling of food, (ii) the issuance of the
    license is approved by the State Commission, (iii) the
    issuance of the license is in accordance with all
    applicable local ordinances in effect where the premises
    are located, and (iv) the official granted a license does
    not vote on alcoholic liquor issues pending before the
    board or council to which the license holder is elected.
    Notwithstanding any provision of this paragraph (14) to the
    contrary, an alderman or member of a city council or
    commission, a member of a village board of trustees other
    than the president of the village board of trustees, or a
    member of a county board other than the president of a
    county board may have a direct interest in the manufacture,
    sale, or distribution of alcoholic liquor as long as he or
    she is not a law enforcing public official, a mayor, a
    village board president, or president of a county board. To
    prevent any conflict of interest, the elected official with
    the direct interest in the manufacture, sale, or
    distribution of alcoholic liquor shall not participate in
    any meetings, hearings, or decisions on matters impacting
    the manufacture, sale, or distribution of alcoholic
    liquor. Furthermore, the mayor of a city with a population
    of 55,000 50,000 or less or the president of a village with
    a population of 55,000 50,000 or less may have an interest
    in the manufacture, sale, or distribution of alcoholic
    liquor as long as the council or board over which he or she
    presides has made a local liquor control commissioner
    appointment that complies with the requirements of Section
    4-2 of this Act.
        (15) A person who is not a beneficial owner of the
    business to be operated by the licensee.
        (16) A person who has been convicted of a gambling
    offense as proscribed by any of subsections (a) (3) through
    (a) (11) of Section 28-1 of, or as proscribed by Section
    28-1.1 or 28-3 of, the Criminal Code of 1961 or the
    Criminal Code of 2012, or as proscribed by a statute
    replaced by any of the aforesaid statutory provisions.
        (17) A person or entity to whom a federal wagering
    stamp has been issued by the federal government, unless the
    person or entity is eligible to be issued a license under
    the Raffles Act or the Illinois Pull Tabs and Jar Games
    Act.
        (18) A person who intends to sell alcoholic liquors for
    use or consumption on his or her licensed retail premises
    who does not have liquor liability insurance coverage for
    that premises in an amount that is at least equal to the
    maximum liability amounts set out in subsection (a) of
    Section 6-21.
    (b) A criminal conviction of a corporation is not grounds
for the denial, suspension, or revocation of a license applied
for or held by the corporation if the criminal conviction was
not the result of a violation of any federal or State law
concerning the manufacture, possession or sale of alcoholic
liquor, the offense that led to the conviction did not result
in any financial gain to the corporation and the corporation
has terminated its relationship with each director, officer,
employee, or controlling shareholder whose actions directly
contributed to the conviction of the corporation. The
Commission shall determine if all provisions of this subsection
(b) have been met before any action on the corporation's
license is initiated.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1059, eff. 8-24-12;
97-1150, eff. 1-25-13.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 05/06/2013