093_SB0411eng SB411 Engrossed LRB093 09914 LRD 10164 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 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 impose a fine, upon the State commission's 28 determination and notice after hearing, that a licensee 29 has violated any provision of this Act or any rule or 30 regulation issued pursuant thereto and in effect for 30 31 days prior to such violation. In instances other than SB411 Engrossed -2- LRB093 09914 LRD 10164 b 1 actions taken pursuant to a violation of Section 6-3, 2 6-5, or 6-9, the State Commission may suspend or revoke a 3 licensee's license or impose a fine upon a licensee only 4 if the appropriate local liquor control commissioner did 5 not revoke or suspend the licensee's license or impose a 6 fine upon the licensee. For a violation of Section 6-16, 7 the State Commission may impose a fine not to exceed $250 8 if the appropriate local liquor control commissioner did 9 not take any action. If the local liquor control 10 commissioner issued a fine of less than $250, the State 11 Commission may impose an additional fine to make the 12 total fine from the appropriate local liquor control 13 commissioner and the State Commission equal up to $250. 14 For multiple violations of Section 6-16 within a 24-month 15 period, the maximum fine shall be increased $250 for each 16 violation. The fine imposed under this paragraph may not 17 exceed $500 for each violation. Each day that the 18 activity, which gave rise to the original fine, continues 19 is a separate violation. The maximum fine that may be 20 levied against any licensee, for the period of the 21 license, shall not exceed $20,000. The maximum penalty 22 that may be imposed on a licensee for selling a bottle of 23 alcoholic liquor with a foreign object in it or serving 24 from a bottle of alcoholic liquor with a foreign object 25 in it shall be the destruction of that bottle of 26 alcoholic liquor for the first 10 bottles so sold or 27 served from by the licensee. For the eleventh bottle of 28 alcoholic liquor and for each third bottle thereafter 29 sold or served from by the licensee with a foreign object 30 in it, the maximum penalty that may be imposed on the 31 licensee is the destruction of the bottle of alcoholic 32 liquor and a fine of up to $50. 33 (2) To adopt such rules and regulations consistent 34 with the provisions of this Act which shall be necessary SB411 Engrossed -3- LRB093 09914 LRD 10164 b 1 to carry on its functions and duties to the end that the 2 health, safety and welfare of the People of the State of 3 Illinois shall be protected and temperance in the 4 consumption of alcoholic liquors shall be fostered and 5 promoted and to distribute copies of such rules and 6 regulations to all licensees affected thereby. 7 (3) To call upon other administrative departments 8 of the State, county and municipal governments, county 9 and city police departments and upon prosecuting officers 10 for such information and assistance as it deems necessary 11 in the performance of its duties. 12 (4) To recommend to local commissioners rules and 13 regulations, not inconsistent with the law, for the 14 distribution and sale of alcoholic liquors throughout the 15 State. 16 (5) To inspect, or cause to be inspected, any 17 premises in this State where alcoholic liquors are 18 manufactured, distributed, warehoused, or sold. 19 (5.1) Upon receipt of a complaint or upon having 20 knowledge that any person is engaged in business as a 21 manufacturer, importing distributor, distributor, or 22 retailer without a license or valid license, to notify 23 the local liquor authority, file a complaint with the 24 State's Attorney's Office of the county where the 25 incident occurred, or initiate an investigation with the 26 appropriate law enforcement officials. 27 (5.2) To issue a cease and desist notice to persons 28 shipping alcoholic liquor into this State from a point 29 outside of this State if the shipment is in violation of 30 this Act. 31 (5.3) To receive complaints from licensees, local 32 officials, law enforcement agencies, organizations, and 33 persons stating that any licensee has been or is 34 violating any provision of this Act or the rules and SB411 Engrossed -4- LRB093 09914 LRD 10164 b 1 regulations issued pursuant to this Act. Such complaints 2 shall be in writing, signed and sworn to by the person 3 making the complaint, and shall state with specificity 4 the facts in relation to the alleged violation. If the 5 Commission has reasonable grounds to believe that the 6 complaint substantially alleges a violation of this Act 7 or rules and regulations adopted pursuant to this Act, it 8 shall conduct an investigation. If, after conducting an 9 investigation, the Commission is satisfied that the 10 alleged violation did occur, it shall proceed with 11 disciplinary action against the licensee as provided in 12 this Act. 13 (6) To hear and determine appeals from orders of a 14 local commission in accordance with the provisions of 15 this Act, as hereinafter set forth. Hearings under this 16 subsection shall be held in Springfield or Chicago, at 17 whichever location is the more convenient for the 18 majority of persons who are parties to the hearing. 19 (7) The commission shall establish uniform systems 20 of accounts to be kept by all retail licensees having 21 more than 4 employees, and for this purpose the 22 commission may classify all retail licensees having more 23 than 4 employees and establish a uniform system of 24 accounts for each class and prescribe the manner in which 25 such accounts shall be kept. The commission may also 26 prescribe the forms of accounts to be kept by all retail 27 licensees having more than 4 employees, including but not 28 limited to accounts of earnings and expenses and any 29 distribution, payment, or other distribution of earnings 30 or assets, and any other forms, records and memoranda 31 which in the judgment of the commission may be necessary 32 or appropriate to carry out any of the provisions of this 33 Act, including but not limited to such forms, records and 34 memoranda as will readily and accurately disclose at all SB411 Engrossed -5- LRB093 09914 LRD 10164 b 1 times the beneficial ownership of such retail licensed 2 business. The accounts, forms, records and memoranda 3 shall be available at all reasonable times for inspection 4 by authorized representatives of the State commission or 5 by any local liquor control commissioner or his or her 6 authorized representative. The commission, may, from time 7 to time, alter, amend or repeal, in whole or in part, any 8 uniform system of accounts, or the form and manner of 9 keeping accounts. 10 (8) In the conduct of any hearing authorized to be 11 held by the commission, to appoint, at the commission's 12 discretion, hearing officers to conduct hearings 13 involving complex issues or issues that will require a 14 protracted period of time to resolve, to examine, or 15 cause to be examined, under oath, any licensee, and to 16 examine or cause to be examined the books and records of 17 such licensee; to hear testimony and take proof material 18 for its information in the discharge of its duties 19 hereunder; to administer or cause to be administered 20 oaths; for any such purpose to issue subpoena or 21 subpoenas to require the attendance of witnesses and the 22 production of books, which shall be effective in any part 23 of this State, and to adopt rules to implement its powers 24 under this paragraph (8). 25 Any Circuit Court may by order duly entered, require 26 the attendance of witnesses and the production of 27 relevant books subpoenaed by the State commission and the 28 court may compel obedience to its order by proceedings 29 for contempt. 30 (9) To investigate the administration of laws in 31 relation to alcoholic liquors in this and other states 32 and any foreign countries, and to recommend from time to 33 time to the Governor and through him or her to the 34 legislature of this State, such amendments to this Act, SB411 Engrossed -6- LRB093 09914 LRD 10164 b 1 if any, as it may think desirable and as will serve to 2 further the general broad purposes contained in Section 3 1-2 hereof. 4 (10) To adopt such rules and regulations consistent 5 with the provisions of this Act which shall be necessary 6 for the control, sale or disposition of alcoholic liquor 7 damaged as a result of an accident, wreck, flood, fire or 8 other similar occurrence. 9 (11) To develop industry educational programs 10 related to responsible serving and selling, particularly 11 in the areas of overserving consumers and illegal 12 underage purchasing and consumption of alcoholic 13 beverages. 14 (11.1) To license persons providing education and 15 training to alcohol beverage sellers and servers under 16 the Beverage Alcohol Sellers and Servers Education and 17 Training (BASSET) programs and to develop and administer 18 a public awareness program in Illinois to reduce or 19 eliminate the illegal purchase and consumption of 20 alcoholic beverage products by persons under the age of 21 21. Application for a license shall be made on forms 22 provided by the State Commission. 23 (12) To develop and maintain a repository of 24 license and regulatory information. 25 (13) On or before January 15, 1994, the Commission 26 shall issue a written report to the Governor and General 27 Assembly that is to be based on a comprehensive study of 28 the impact on and implications for the State of Illinois 29 of Section 1926 of the Federal ADAMHA Reorganization Act 30 of 1992 (Public Law 102-321). This study shall address 31 the extent to which Illinois currently complies with the 32 provisions of P.L. 102-321 and the rules promulgated 33 pursuant thereto. 34 As part of its report, the Commission shall provide SB411 Engrossed -7- LRB093 09914 LRD 10164 b 1 the following essential information: 2 (i) the number of retail distributors of 3 tobacco products, by type and geographic area, in 4 the State; 5 (ii) the number of reported citations and 6 successful convictions, categorized by type and 7 location of retail distributor, for violation of the 8 Sale of Tobacco to Minors Act and the Smokeless 9 Tobacco Limitation Act; 10 (iii) the extent and nature of organized 11 educational and governmental activities that are 12 intended to promote, encourage or otherwise secure 13 compliance with any Illinois laws that prohibit the 14 sale or distribution of tobacco products to minors; 15 and 16 (iv) the level of access and availability of 17 tobacco products to individuals under the age of 18. 18 To obtain the data necessary to comply with the 19 provisions of P.L. 102-321 and the requirements of this 20 report, the Commission shall conduct random, unannounced 21 inspections of a geographically and scientifically 22 representative sample of the State's retail tobacco 23 distributors. 24 The Commission shall consult with the Department of 25 Public Health, the Department of Human Services, the Illinois 26 State Police and any other executive branch agency, and 27 private organizations that may have information relevant to 28 this report. 29 The Commission may contract with the Food and Drug 30 Administration of the U.S. Department of Health and Human 31 Services to conduct unannounced investigations of Illinois 32 tobacco vendors to determine compliance with federal laws 33 relating to the illegal sale of cigarettes and smokeless 34 tobacco products to persons under the age of 18. SB411 Engrossed -8- LRB093 09914 LRD 10164 b 1 (b) On or before April 30, 1999, the Commission shall 2 present a written report to the Governor and the General 3 Assembly that shall be based on a study of the impact of this 4 amendatory Act of 1998 on the business of soliciting, 5 selling, and shipping alcoholic liquor from outside of this 6 State directly to residents of this State. 7 As part of its report, the Commission shall provide the 8 following information: 9 (i) the amount of State excise and sales tax 10 revenues generated as a result of this amendatory Act of 11 1998; 12 (ii) the amount of licensing fees received as a 13 result of this amendatory Act of 1998; 14 (iii) the number of reported violations, the number 15 of cease and desist notices issued by the Commission, the 16 number of notices of violations issued to the Department 17 of Revenue, and the number of notices and complaints of 18 violations to law enforcement officials. 19 (Source: P.A. 91-553, eff. 8-14-99; 91-922, eff. 7-7-00; 20 92-378, eff. 8-16-01; 92-813, eff. 8-21-02.)