093_SB0410eng SB410 Engrossed LRB093 09913 LRD 10163 b 1 AN ACT in relation to alcohol. 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 Sections 3-12 and 6-2 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. Except in the case of an action taken 26 pursuant to a violation of Section 6-3, 6-5, or 6-9, any 27 action by the State Commission to suspend or revoke a 28 licensee's license shall be limited to the license for 29 the specific premises where the violation occurred. 30 In lieu of suspending or revoking a license, the 31 commission may impose a fine, upon the State commission's SB410 Engrossed -2- LRB093 09913 LRD 10163 b 1 determination and notice after hearing, that a licensee 2 has violated any provision of this Act or any rule or 3 regulation issued pursuant thereto and in effect for 30 4 days prior to such violation. The fine imposed under 5 this paragraph may not exceed $500 for each violation. 6 Each day that the activity, which gave rise to the 7 original fine, continues is a separate violation. The 8 maximum fine that may be levied against any licensee, for 9 the period of the license, shall not exceed $20,000. The 10 maximum penalty that may be imposed on a licensee for 11 selling a bottle of alcoholic liquor with a foreign 12 object in it or serving from a bottle of alcoholic liquor 13 with a foreign object in it shall be the destruction of 14 that bottle of alcoholic liquor for the first 10 bottles 15 so sold or served from by the licensee. For the eleventh 16 bottle of alcoholic liquor and for each third bottle 17 thereafter sold or served from by the licensee with a 18 foreign object in it, the maximum penalty that may be 19 imposed on the licensee is the destruction of the bottle 20 of alcoholic liquor and a fine of up to $50. 21 (2) To adopt such rules and regulations consistent 22 with the provisions of this Act which shall be necessary 23 to carry on its functions and duties to the end that the 24 health, safety and welfare of the People of the State of 25 Illinois shall be protected and temperance in the 26 consumption of alcoholic liquors shall be fostered and 27 promoted and to distribute copies of such rules and 28 regulations to all licensees affected thereby. 29 (3) To call upon other administrative departments 30 of the State, county and municipal governments, county 31 and city police departments and upon prosecuting officers 32 for such information and assistance as it deems necessary 33 in the performance of its duties. 34 (4) To recommend to local commissioners rules and SB410 Engrossed -3- LRB093 09913 LRD 10163 b 1 regulations, not inconsistent with the law, for the 2 distribution and sale of alcoholic liquors throughout the 3 State. 4 (5) To inspect, or cause to be inspected, any 5 premises in this State where alcoholic liquors are 6 manufactured, distributed, warehoused, or sold. 7 (5.1) Upon receipt of a complaint or upon having 8 knowledge that any person is engaged in business as a 9 manufacturer, importing distributor, distributor, or 10 retailer without a license or valid license, to notify 11 the local liquor authority, file a complaint with the 12 State's Attorney's Office of the county where the 13 incident occurred, or initiate an investigation with the 14 appropriate law enforcement officials. 15 (5.2) To issue a cease and desist notice to persons 16 shipping alcoholic liquor into this State from a point 17 outside of this State if the shipment is in violation of 18 this Act. 19 (5.3) To receive complaints from licensees, local 20 officials, law enforcement agencies, organizations, and 21 persons stating that any licensee has been or is 22 violating any provision of this Act or the rules and 23 regulations issued pursuant to this Act. Such complaints 24 shall be in writing, signed and sworn to by the person 25 making the complaint, and shall state with specificity 26 the facts in relation to the alleged violation. If the 27 Commission has reasonable grounds to believe that the 28 complaint substantially alleges a violation of this Act 29 or rules and regulations adopted pursuant to this Act, it 30 shall conduct an investigation. If, after conducting an 31 investigation, the Commission is satisfied that the 32 alleged violation did occur, it shall proceed with 33 disciplinary action against the licensee as provided in 34 this Act. SB410 Engrossed -4- LRB093 09913 LRD 10163 b 1 (6) To hear and determine appeals from orders of a 2 local commission in accordance with the provisions of 3 this Act, as hereinafter set forth. Hearings under this 4 subsection shall be held in Springfield or Chicago, at 5 whichever location is the more convenient for the 6 majority of persons who are parties to the hearing. 7 (7) The commission shall establish uniform systems 8 of accounts to be kept by all retail licensees having 9 more than 4 employees, and for this purpose the 10 commission may classify all retail licensees having more 11 than 4 employees and establish a uniform system of 12 accounts for each class and prescribe the manner in which 13 such accounts shall be kept. The commission may also 14 prescribe the forms of accounts to be kept by all retail 15 licensees having more than 4 employees, including but not 16 limited to accounts of earnings and expenses and any 17 distribution, payment, or other distribution of earnings 18 or assets, and any other forms, records and memoranda 19 which in the judgment of the commission may be necessary 20 or appropriate to carry out any of the provisions of this 21 Act, including but not limited to such forms, records and 22 memoranda as will readily and accurately disclose at all 23 times the beneficial ownership of such retail licensed 24 business. The accounts, forms, records and memoranda 25 shall be available at all reasonable times for inspection 26 by authorized representatives of the State commission or 27 by any local liquor control commissioner or his or her 28 authorized representative. The commission, may, from time 29 to time, alter, amend or repeal, in whole or in part, any 30 uniform system of accounts, or the form and manner of 31 keeping accounts. 32 (8) In the conduct of any hearing authorized to be 33 held by the commission, to appoint, at the commission's 34 discretion, hearing officers to conduct hearings SB410 Engrossed -5- LRB093 09913 LRD 10163 b 1 involving complex issues or issues that will require a 2 protracted period of time to resolve, to examine, or 3 cause to be examined, under oath, any licensee, and to 4 examine or cause to be examined the books and records of 5 such licensee; to hear testimony and take proof material 6 for its information in the discharge of its duties 7 hereunder; to administer or cause to be administered 8 oaths; for any such purpose to issue subpoena or 9 subpoenas to require the attendance of witnesses and the 10 production of books, which shall be effective in any part 11 of this State, and to adopt rules to implement its powers 12 under this paragraph (8). 13 Any Circuit Court may by order duly entered, require 14 the attendance of witnesses and the production of 15 relevant books subpoenaed by the State commission and the 16 court may compel obedience to its order by proceedings 17 for contempt. 18 (9) To investigate the administration of laws in 19 relation to alcoholic liquors in this and other states 20 and any foreign countries, and to recommend from time to 21 time to the Governor and through him or her to the 22 legislature of this State, such amendments to this Act, 23 if any, as it may think desirable and as will serve to 24 further the general broad purposes contained in Section 25 1-2 hereof. 26 (10) To adopt such rules and regulations consistent 27 with the provisions of this Act which shall be necessary 28 for the control, sale or disposition of alcoholic liquor 29 damaged as a result of an accident, wreck, flood, fire or 30 other similar occurrence. 31 (11) To develop industry educational programs 32 related to responsible serving and selling, particularly 33 in the areas of overserving consumers and illegal 34 underage purchasing and consumption of alcoholic SB410 Engrossed -6- LRB093 09913 LRD 10163 b 1 beverages. 2 (11.1) To license persons providing education and 3 training to alcohol beverage sellers and servers under 4 the Beverage Alcohol Sellers and Servers Education and 5 Training (BASSET) programs and to develop and administer 6 a public awareness program in Illinois to reduce or 7 eliminate the illegal purchase and consumption of 8 alcoholic beverage products by persons under the age of 9 21. Application for a license shall be made on forms 10 provided by the State Commission. 11 (12) To develop and maintain a repository of 12 license and regulatory information. 13 (13) On or before January 15, 1994, the Commission 14 shall issue a written report to the Governor and General 15 Assembly that is to be based on a comprehensive study of 16 the impact on and implications for the State of Illinois 17 of Section 1926 of the Federal ADAMHA Reorganization Act 18 of 1992 (Public Law 102-321). This study shall address 19 the extent to which Illinois currently complies with the 20 provisions of P.L. 102-321 and the rules promulgated 21 pursuant thereto. 22 As part of its report, the Commission shall provide 23 the following essential information: 24 (i) the number of retail distributors of 25 tobacco products, by type and geographic area, in 26 the State; 27 (ii) the number of reported citations and 28 successful convictions, categorized by type and 29 location of retail distributor, for violation of the 30 Sale of Tobacco to Minors Act and the Smokeless 31 Tobacco Limitation Act; 32 (iii) the extent and nature of organized 33 educational and governmental activities that are 34 intended to promote, encourage or otherwise secure SB410 Engrossed -7- LRB093 09913 LRD 10163 b 1 compliance with any Illinois laws that prohibit the 2 sale or distribution of tobacco products to minors; 3 and 4 (iv) the level of access and availability of 5 tobacco products to individuals under the age of 18. 6 To obtain the data necessary to comply with the 7 provisions of P.L. 102-321 and the requirements of this 8 report, the Commission shall conduct random, unannounced 9 inspections of a geographically and scientifically 10 representative sample of the State's retail tobacco 11 distributors. 12 The Commission shall consult with the Department of 13 Public Health, the Department of Human Services, the Illinois 14 State Police and any other executive branch agency, and 15 private organizations that may have information relevant to 16 this report. 17 The Commission may contract with the Food and Drug 18 Administration of the U.S. Department of Health and Human 19 Services to conduct unannounced investigations of Illinois 20 tobacco vendors to determine compliance with federal laws 21 relating to the illegal sale of cigarettes and smokeless 22 tobacco products to persons under the age of 18. 23 (b) On or before April 30, 1999, the Commission shall 24 present a written report to the Governor and the General 25 Assembly that shall be based on a study of the impact of this 26 amendatory Act of 1998 on the business of soliciting, 27 selling, and shipping alcoholic liquor from outside of this 28 State directly to residents of this State. 29 As part of its report, the Commission shall provide the 30 following information: 31 (i) the amount of State excise and sales tax 32 revenues generated as a result of this amendatory Act of 33 1998; 34 (ii) the amount of licensing fees received as a SB410 Engrossed -8- LRB093 09913 LRD 10163 b 1 result of this amendatory Act of 1998; 2 (iii) the number of reported violations, the number 3 of cease and desist notices issued by the Commission, the 4 number of notices of violations issued to the Department 5 of Revenue, and the number of notices and complaints of 6 violations to law enforcement officials. 7 (Source: P.A. 91-553, eff. 8-14-99; 91-922, eff. 7-7-00; 8 92-378, eff. 8-16-01; 92-813, eff. 8-21-02.) 9 (235 ILCS 5/6-2) (from Ch. 43, par. 120) 10 Sec. 6-2. Issuance of licenses to certain persons 11 prohibited. 12 (a) Except as otherwise provided in subsection (b) of 13 this Section and in paragraph (1) of subsection (a) of 14 Section 3-12, no license of any kind issued by the State 15 Commission or any local commission shall be issued to: 16 (1) A person who is not a resident of any city, 17 village or county in which the premises covered by the 18 license are located; except in case of railroad or boat 19 licenses. 20 (2) A person who is not of good character and 21 reputation in the community in which he resides. 22 (3) A person who is not a citizen of the United 23 States. 24 (4) A person who has been convicted of a felony 25 under any Federal or State law, unless the Commission 26 determines that such person has been sufficiently 27 rehabilitated to warrant the public trust after 28 considering matters set forth in such person's 29 application and the Commission's investigation. The 30 burden of proof of sufficient rehabilitation shall be on 31 the applicant. 32 (5) A person who has been convicted of being the 33 keeper or is keeping a house of ill fame. SB410 Engrossed -9- LRB093 09913 LRD 10163 b 1 (6) A person who has been convicted of pandering or 2 other crime or misdemeanor opposed to decency and 3 morality. 4 (7) A person whose license issued under this Act 5 has been revoked for cause. 6 (8) A person who at the time of application for 7 renewal of any license issued hereunder would not be 8 eligible for such license upon a first application. 9 (9) A copartnership, if any general partnership 10 thereof, or any limited partnership thereof, owning more 11 than 5% of the aggregate limited partner interest in such 12 copartnership would not be eligible to receive a license 13 hereunder for any reason other than residence within the 14 political subdivision, unless residency is required by 15 local ordinance. 16 (10) A corporation, if any officer, manager or 17 director thereof, or any stockholder or stockholders 18 owning in the aggregate more than 5% of the stock of such 19 corporation, would not be eligible to receive a license 20 hereunder for any reason other than citizenship and 21 residence within the political subdivision. 22 (10a) A corporation unless it is incorporated in 23 Illinois, or unless it is a foreign corporation which is 24 qualified under the Business Corporation Act of 1983 to 25 transact business in Illinois. 26 (11) A person whose place of business is conducted 27 by a manager or agent unless the manager or agent 28 possesses the same qualifications required by the 29 licensee. 30 (12) A person who has been convicted of a violation 31 of any Federal or State law concerning the manufacture, 32 possession or sale of alcoholic liquor, subsequent to the 33 passage of this Act or has forfeited his bond to appear 34 in court to answer charges for any such violation. SB410 Engrossed -10- LRB093 09913 LRD 10163 b 1 (13) A person who does not beneficially own the 2 premises for which a license is sought, or does not have 3 a lease thereon for the full period for which the license 4 is to be issued. 5 (14) Any law enforcing public official, including 6 members of local liquor control commissions, any mayor, 7 alderman, or member of the city council or commission, 8 any president of the village board of trustees, any 9 member of a village board of trustees, or any president 10 or member of a county board; and no such official shall 11 be interested directly in the manufacture, sale, or 12 distribution of alcoholic liquor, except that a license 13 may be granted to such official in relation to premises 14 that are not located within the territory subject to the 15 jurisdiction of that official if the issuance of such 16 license is approved by the State Liquor Control 17 Commission and except that a license may be granted, in a 18 city or village with a population of 50,000 or less, to 19 any alderman, member of a city council, or member of a 20 village board of trustees in relation to premises that 21 are located within the territory subject to the 22 jurisdiction of that official if (i) the sale of 23 alcoholic liquor pursuant to the license is incidental to 24 the selling of food, (ii) the issuance of the license is 25 approved by the State Commission, (iii) the issuance of 26 the license is in accordance with all applicable local 27 ordinances in effect where the premises are located, and 28 (iv) the official granted a license does not vote on 29 alcoholic liquor issues pending before the board or 30 council to which the license holder is elected. 31 (15) A person who is not a beneficial owner of the 32 business to be operated by the licensee. 33 (16) A person who has been convicted of a gambling 34 offense as proscribed by any of subsections (a) (3) SB410 Engrossed -11- LRB093 09913 LRD 10163 b 1 through (a) (11) of Section 28-1 of, or as proscribed by 2 Section 28-1.1 or 28-3 of, the Criminal Code of 1961, or 3 as proscribed by a statute replaced by any of the 4 aforesaid statutory provisions. 5 (17) A person or entity to whom a federal wagering 6 stamp has been issued by the federal government, unless 7 the person or entity is eligible to be issued a license 8 under the Raffles Act or the Illinois Pull Tabs and Jar 9 Games Act. 10 (b) A criminal conviction of a corporation is not 11 grounds for the denial, suspension, or revocation of a 12 license applied for or held by the corporation if the 13 criminal conviction was not the result of a violation of any 14 federal or State law concerning the manufacture, possession 15 or sale of alcoholic liquor, the offense that led to the 16 conviction did not result in any financial gain to the 17 corporation and the corporation has terminated its 18 relationship with each director, officer, employee, or 19 controlling shareholder whose actions directly contributed to 20 the conviction of the corporation. The Commission shall 21 determine if all provisions of this subsection (b) have been 22 met before any action on the corporation's license is 23 initiated. 24 (Source: P.A. 92-378, eff. 8-16-01.)