093_SB0218eng SB218 Engrossed LRB093 06404 LRD 06526 b 1 AN ACT in relation to alcoholic liquor. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Liquor Control Act of 1934 is amended by 5 changing Section 3-12 as follows: 6 (235 ILCS 5/3-12) (from Ch. 43, par. 108) 7 Sec. 3-12. Powers and duties of State Commission. 8 (a) The State commission shall have the following 9 powers, functions and duties: 10 (1) To receive applications and to issue licenses 11 to manufacturers, foreign importers, importing 12 distributors, distributors, non-resident dealers, on 13 premise consumption retailers, off premise sale 14 retailers, special event retailer licensees, special use 15 permit licenses, auction liquor licenses, brew pubs, 16 caterer retailers, non-beverage users, railroads, 17 including owners and lessees of sleeping, dining and cafe 18 cars, airplanes, boats, brokers, and wine maker's 19 premises licensees in accordance with the provisions of 20 this Act, and to suspend or revoke such licenses upon the 21 State commission's determination, upon notice after 22 hearing, that a licensee has violated any provision of 23 this Act or any rule or regulation issued pursuant 24 thereto and in effect for 30 days prior to such 25 violation. 26 In lieu of suspending or revoking a license, the 27 commission may issue a warning based upon the 28 administrative procedures adopted by the Commission or 29 may impose a fine, upon the State commission's 30 determination and notice after hearing, that a licensee 31 has violated any provision of this Act or any rule or SB218 Engrossed -2- LRB093 06404 LRD 06526 b 1 regulation issued pursuant thereto and in effect for 30 2 days prior to such violation. The fine imposed under 3 this paragraph may not exceed $500 for each violation. 4 Each day that the activity, which gave rise to the 5 original fine, continues is a separate violation. The 6 maximum fine that may be levied against any licensee, for 7 the period of the license, shall not exceed $20,000. The 8 maximum penalty that may be imposed on a licensee for 9 selling a bottle of alcoholic liquor with a foreign 10 object in it or serving from a bottle of alcoholic liquor 11 with a foreign object in it shall be the destruction of 12 that bottle of alcoholic liquor for the first 10 bottles 13 so sold or served from by the licensee. For the eleventh 14 bottle of alcoholic liquor and for each third bottle 15 thereafter sold or served from by the licensee with a 16 foreign object in it, the maximum penalty that may be 17 imposed on the licensee is the destruction of the bottle 18 of alcoholic liquor and a fine of up to $50. 19 (2) To adopt such rules and regulations consistent 20 with the provisions of this Act which shall be necessary 21 to carry on its functions and duties to the end that the 22 health, safety and welfare of the People of the State of 23 Illinois shall be protected and temperance in the 24 consumption of alcoholic liquors shall be fostered and 25 promoted and to distribute copies of such rules and 26 regulations to all licensees affected thereby. 27 (3) To call upon other administrative departments 28 of the State, county and municipal governments, county 29 and city police departments and upon prosecuting officers 30 for such information and assistance as it deems necessary 31 in the performance of its duties. 32 (4) To recommend to local commissioners rules and 33 regulations, not inconsistent with the law, for the 34 distribution and sale of alcoholic liquors throughout the SB218 Engrossed -3- LRB093 06404 LRD 06526 b 1 State. 2 (5) To inspect, or cause to be inspected, any 3 premises in this State where alcoholic liquors are 4 manufactured, distributed, warehoused, or sold. 5 (5.1) Upon receipt of a complaint or upon having 6 knowledge that any person is engaged in business as a 7 manufacturer, importing distributor, distributor, or 8 retailer without a license or valid license, to notify 9 the local liquor authority, file a complaint with the 10 State's Attorney's Office of the county where the 11 incident occurred, or initiate an investigation with the 12 appropriate law enforcement officials. 13 (5.2) To issue a cease and desist notice to persons 14 shipping alcoholic liquor into this State from a point 15 outside of this State if the shipment is in violation of 16 this Act. 17 (5.3) To receive complaints from licensees, local 18 officials, law enforcement agencies, organizations, and 19 persons stating that any licensee has been or is 20 violating any provision of this Act or the rules and 21 regulations issued pursuant to this Act. Such complaints 22 shall be in writing, signed and sworn to by the person 23 making the complaint, and shall state with specificity 24 the facts in relation to the alleged violation. If the 25 Commission has reasonable grounds to believe that the 26 complaint substantially alleges a violation of this Act 27 or rules and regulations adopted pursuant to this Act, it 28 shall conduct an investigation. If, after conducting an 29 investigation, the Commission is satisfied that the 30 alleged violation did occur, it shall proceed with 31 disciplinary action against the licensee as provided in 32 this Act. 33 (6) To hear and determine appeals from orders of a 34 local commission in accordance with the provisions of SB218 Engrossed -4- LRB093 06404 LRD 06526 b 1 this Act, as hereinafter set forth. Hearings under this 2 subsection shall be held in Springfield or Chicago, at 3 whichever location is the more convenient for the 4 majority of persons who are parties to the hearing. 5 (7) The commission shall establish uniform systems 6 of accounts to be kept by all retail licensees having 7 more than 4 employees, and for this purpose the 8 commission may classify all retail licensees having more 9 than 4 employees and establish a uniform system of 10 accounts for each class and prescribe the manner in which 11 such accounts shall be kept. The commission may also 12 prescribe the forms of accounts to be kept by all retail 13 licensees having more than 4 employees, including but not 14 limited to accounts of earnings and expenses and any 15 distribution, payment, or other distribution of earnings 16 or assets, and any other forms, records and memoranda 17 which in the judgment of the commission may be necessary 18 or appropriate to carry out any of the provisions of this 19 Act, including but not limited to such forms, records and 20 memoranda as will readily and accurately disclose at all 21 times the beneficial ownership of such retail licensed 22 business. The accounts, forms, records and memoranda 23 shall be available at all reasonable times for inspection 24 by authorized representatives of the State commission or 25 by any local liquor control commissioner or his or her 26 authorized representative. The commission, may, from time 27 to time, alter, amend or repeal, in whole or in part, any 28 uniform system of accounts, or the form and manner of 29 keeping accounts. 30 (8) In the conduct of any hearing authorized to be 31 held by the commission, to appoint, at the commission's 32 discretion, hearing officers to conduct hearings 33 involving complex issues or issues that will require a 34 protracted period of time to resolve, to examine, or SB218 Engrossed -5- LRB093 06404 LRD 06526 b 1 cause to be examined, under oath, any licensee, and to 2 examine or cause to be examined the books and records of 3 such licensee; to hear testimony and take proof material 4 for its information in the discharge of its duties 5 hereunder; to administer or cause to be administered 6 oaths; for any such purpose to issue subpoena or 7 subpoenas to require the attendance of witnesses and the 8 production of books, which shall be effective in any part 9 of this State, and to adopt rules to implement its powers 10 under this paragraph (8). 11 Any Circuit Court may by order duly entered, require 12 the attendance of witnesses and the production of 13 relevant books subpoenaed by the State commission and the 14 court may compel obedience to its order by proceedings 15 for contempt. 16 (9) To investigate the administration of laws in 17 relation to alcoholic liquors in this and other states 18 and any foreign countries, and to recommend from time to 19 time to the Governor and through him or her to the 20 legislature of this State, such amendments to this Act, 21 if any, as it may think desirable and as will serve to 22 further the general broad purposes contained in Section 23 1-2 hereof. 24 (10) To adopt such rules and regulations consistent 25 with the provisions of this Act which shall be necessary 26 for the control, sale or disposition of alcoholic liquor 27 damaged as a result of an accident, wreck, flood, fire or 28 other similar occurrence. 29 (11) To develop industry educational programs 30 related to responsible serving and selling, particularly 31 in the areas of overserving consumers and illegal 32 underage purchasing and consumption of alcoholic 33 beverages. 34 (11.1) To license persons providing education and SB218 Engrossed -6- LRB093 06404 LRD 06526 b 1 training to alcohol beverage sellers and servers under 2 the Beverage Alcohol Sellers and Servers Education and 3 Training (BASSET) programs and to develop and administer 4 a public awareness program in Illinois to reduce or 5 eliminate the illegal purchase and consumption of 6 alcoholic beverage products by persons under the age of 7 21. Application for a license shall be made on forms 8 provided by the State Commission. 9 (12) To develop and maintain a repository of 10 license and regulatory information. 11 (13) On or before January 15, 1994, the Commission 12 shall issue a written report to the Governor and General 13 Assembly that is to be based on a comprehensive study of 14 the impact on and implications for the State of Illinois 15 of Section 1926 of the Federal ADAMHA Reorganization Act 16 of 1992 (Public Law 102-321). This study shall address 17 the extent to which Illinois currently complies with the 18 provisions of P.L. 102-321 and the rules promulgated 19 pursuant thereto. 20 As part of its report, the Commission shall provide 21 the following essential information: 22 (i) the number of retail distributors of 23 tobacco products, by type and geographic area, in 24 the State; 25 (ii) the number of reported citations and 26 successful convictions, categorized by type and 27 location of retail distributor, for violation of the 28 Sale of Tobacco to Minors Act and the Smokeless 29 Tobacco Limitation Act; 30 (iii) the extent and nature of organized 31 educational and governmental activities that are 32 intended to promote, encourage or otherwise secure 33 compliance with any Illinois laws that prohibit the 34 sale or distribution of tobacco products to minors; SB218 Engrossed -7- LRB093 06404 LRD 06526 b 1 and 2 (iv) the level of access and availability of 3 tobacco products to individuals under the age of 18. 4 To obtain the data necessary to comply with the 5 provisions of P.L. 102-321 and the requirements of this 6 report, the Commission shall conduct random, unannounced 7 inspections of a geographically and scientifically 8 representative sample of the State's retail tobacco 9 distributors. 10 The Commission shall consult with the Department of 11 Public Health, the Department of Human Services, the Illinois 12 State Police and any other executive branch agency, and 13 private organizations that may have information relevant to 14 this report. 15 The Commission may contract with the Food and Drug 16 Administration of the U.S. Department of Health and Human 17 Services to conduct unannounced investigations of Illinois 18 tobacco vendors to determine compliance with federal laws 19 relating to the illegal sale of cigarettes and smokeless 20 tobacco products to persons under the age of 18. 21 (b) On or before April 30, 1999, the Commission shall 22 present a written report to the Governor and the General 23 Assembly that shall be based on a study of the impact of this 24 amendatory Act of 1998 on the business of soliciting, 25 selling, and shipping alcoholic liquor from outside of this 26 State directly to residents of this State. 27 As part of its report, the Commission shall provide the 28 following information: 29 (i) the amount of State excise and sales tax 30 revenues generated as a result of this amendatory Act of 31 1998; 32 (ii) the amount of licensing fees received as a 33 result of this amendatory Act of 1998; 34 (iii) the number of reported violations, the number SB218 Engrossed -8- LRB093 06404 LRD 06526 b 1 of cease and desist notices issued by the Commission, the 2 number of notices of violations issued to the Department 3 of Revenue, and the number of notices and complaints of 4 violations to law enforcement officials. 5 (Source: P.A. 91-553, eff. 8-14-99; 91-922, eff. 7-7-00; 6 92-378, eff. 8-16-01; 92-813, eff. 8-21-02.) 7 Section 99. Effective date. This Act takes effect upon 8 becoming law.