HB2577 EnrolledLRB101 06994 RPS 52027 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-4, 3-12, 8-2, 10-1, and 10-7.1 as follows:
 
6    (235 ILCS 5/3-4)  (from Ch. 43, par. 100)
7    Sec. 3-4. Authority to conduct investigations. The State
8Commission commission shall obtain, pursuant to the provisions
9of the "Personnel Code" enacted by the 69th General Assembly,
10such inspectors, clerks, and other employees as may be
11necessary to carry out the provisions of this Act, or to
12perform the duties and exercise the powers conferred by law
13upon the State Commission commission. The inspectors obtained
14by the State Commission shall not be peace officers and shall
15not exercise any powers of a peace officer.
16    The State Commission shall have the power to appoint
17investigators to conduct investigations, searches, seizures,
18arrests, and other duties required to enforce the provisions of
19this Act, on behalf of the State Commission, and to ensure the
20health, safety, and welfare of the People of the State of
21Illinois. The Commission's investigators are peace officers
22and have all the powers possessed by police officers in cities
23and by sheriffs. State Commission investigators may exercise

 

 

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1these powers throughout the State whenever enforcing the
2provisions of this Act, subject to the rules and orders of the
3State Commission. No State Commission investigator may have
4peace officer status or may exercise police powers unless: (1)
5he or she successfully completes the basic police training
6course mandated and approved by the Illinois Law Enforcement
7Training Standards Board; or (2) the Illinois Law Enforcement
8Training Standards Board waives the training requirement by
9reason of the investigator's prior law enforcement experience,
10training, or both.
11    The Executive Director must authorize to each investigator
12of the State Commission and to any other employee of the
13Department exercising the powers of a peace officer a distinct
14badge that, on its face: (1) clearly states that the badge is
15authorized by the State Commission; and (2) contains a unique
16identifying number. No other badge shall be authorized by the
17State Commission. Nothing in this Section prohibits the
18Executive Director from issuing shields or other distinctive
19identification to employees performing security or regulatory
20duties who are not peace officers if the Executive Director
21determines that a shield or distinctive identification is
22needed by the employee to carry out his or her
23responsibilities.
24(Source: P.A. 82-783.)
 
25    (235 ILCS 5/3-12)

 

 

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1    Sec. 3-12. Powers and duties of State Commission.
2    (a) The State Commission shall have the following powers,
3functions, and duties:
4        (1) To receive applications and to issue licenses to
5    manufacturers, foreign importers, importing distributors,
6    distributors, non-resident dealers, on premise consumption
7    retailers, off premise sale retailers, special event
8    retailer licensees, special use permit licenses, auction
9    liquor licenses, brew pubs, caterer retailers,
10    non-beverage users, railroads, including owners and
11    lessees of sleeping, dining and cafe cars, airplanes,
12    boats, brokers, and wine maker's premises licensees in
13    accordance with the provisions of this Act, and to suspend
14    or revoke such licenses upon the State Commission's
15    determination, upon notice after hearing, that a licensee
16    has violated any provision of this Act or any rule or
17    regulation issued pursuant thereto and in effect for 30
18    days prior to such violation. Except in the case of an
19    action taken pursuant to a violation of Section 6-3, 6-5,
20    or 6-9, any action by the State Commission to suspend or
21    revoke a licensee's license may be limited to the license
22    for the specific premises where the violation occurred. An
23    action for a violation of this Act shall be commenced by
24    the State Commission within 2 years after the date the
25    State Commission becomes aware of the violation.
26        In lieu of suspending or revoking a license, the

 

 

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1    commission may impose a fine, upon the State Commission's
2    determination and notice after hearing, that a licensee has
3    violated any provision of this Act or any rule or
4    regulation issued pursuant thereto and in effect for 30
5    days prior to such violation.
6        For the purpose of this paragraph (1), when determining
7    multiple violations for the sale of alcohol to a person
8    under the age of 21, a second or subsequent violation for
9    the sale of alcohol to a person under the age of 21 shall
10    only be considered if it was committed within 5 years after
11    the date when a prior violation for the sale of alcohol to
12    a person under the age of 21 was committed.
13        The fine imposed under this paragraph may not exceed
14    $500 for each violation. Each day that the activity, which
15    gave rise to the original fine, continues is a separate
16    violation. The maximum fine that may be levied against any
17    licensee, for the period of the license, shall not exceed
18    $20,000. The maximum penalty that may be imposed on a
19    licensee for selling a bottle of alcoholic liquor with a
20    foreign object in it or serving from a bottle of alcoholic
21    liquor with a foreign object in it shall be the destruction
22    of that bottle of alcoholic liquor for the first 10 bottles
23    so sold or served from by the licensee. For the eleventh
24    bottle of alcoholic liquor and for each third bottle
25    thereafter sold or served from by the licensee with a
26    foreign object in it, the maximum penalty that may be

 

 

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1    imposed on the licensee is the destruction of the bottle of
2    alcoholic liquor and a fine of up to $50.
3        Any notice issued by the State Commission to a licensee
4    for a violation of this Act or any notice with respect to
5    settlement or offer in compromise shall include the field
6    report, photographs, and any other supporting
7    documentation necessary to reasonably inform the licensee
8    of the nature and extent of the violation or the conduct
9    alleged to have occurred. The failure to include such
10    required documentation shall result in the dismissal of the
11    action.
12        (2) To adopt such rules and regulations consistent with
13    the provisions of this Act which shall be necessary to
14    carry on its functions and duties to the end that the
15    health, safety and welfare of the People of the State of
16    Illinois shall be protected and temperance in the
17    consumption of alcoholic liquors shall be fostered and
18    promoted and to distribute copies of such rules and
19    regulations to all licensees affected thereby.
20        (3) To call upon other administrative departments of
21    the State, county and municipal governments, county and
22    city police departments and upon prosecuting officers for
23    such information and assistance as it deems necessary in
24    the performance of its duties.
25        (4) To recommend to local commissioners rules and
26    regulations, not inconsistent with the law, for the

 

 

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1    distribution and sale of alcoholic liquors throughout the
2    State.
3        (5) To inspect, or cause to be inspected, any premises
4    in this State where alcoholic liquors are manufactured,
5    distributed, warehoused, or sold. Nothing in this Act
6    authorizes an agent of the State Commission Commission to
7    inspect private areas within the premises without
8    reasonable suspicion or a warrant during an inspection.
9    "Private areas" include, but are not limited to, safes,
10    personal property, and closed desks.
11        (5.1) Upon receipt of a complaint or upon having
12    knowledge that any person is engaged in business as a
13    manufacturer, importing distributor, distributor, or
14    retailer without a license or valid license, to conduct an
15    investigation. If, after conducting an investigation, the
16    State Commission is satisfied that the alleged conduct
17    occurred or is occurring, it may issue a cease and desist
18    notice as provided in this Act, impose civil penalties as
19    provided in this Act, to notify the local liquor authority,
20    or file a complaint with the State's Attorney's Office of
21    the county where the incident occurred or the Attorney
22    General , or initiate an investigation with the appropriate
23    law enforcement officials.
24        (5.2) Upon receipt of a complaint or upon having
25    knowledge that any person is To issue a cease and desist
26    notice to persons shipping alcoholic liquor into this State

 

 

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1    from a point outside of this State if the shipment is in
2    violation of this Act, to conduct an investigation. If,
3    after conducting an investigation, the State Commission is
4    satisfied that the alleged conduct occurred or is
5    occurring, it may issue a cease and desist notice as
6    provided in this Act, impose civil penalties as provided in
7    this Act, notify the foreign jurisdiction, or file a
8    complaint with the State's Attorney's Office of the county
9    where the incident occurred or the Attorney General.
10        (5.3) To receive complaints from licensees, local
11    officials, law enforcement agencies, organizations, and
12    persons stating that any licensee has been or is violating
13    any provision of this Act or the rules and regulations
14    issued pursuant to this Act. Such complaints shall be in
15    writing, signed and sworn to by the person making the
16    complaint, and shall state with specificity the facts in
17    relation to the alleged violation. If the State Commission
18    has reasonable grounds to believe that the complaint
19    substantially alleges a violation of this Act or rules and
20    regulations adopted pursuant to this Act, it shall conduct
21    an investigation. If, after conducting an investigation,
22    the State Commission is satisfied that the alleged
23    violation did occur, it shall proceed with disciplinary
24    action against the licensee as provided in this Act.
25        (5.4) To make arrests and issue notices of civil
26    violations where necessary for the enforcement of this Act.

 

 

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1        (5.5) To investigate any and all unlicensed activity.
2        (5.6) To impose civil penalties or fines to any person
3    who, without holding a valid license, engages in conduct
4    that requires a license pursuant to this Act, in an amount
5    not to exceed $20,000 for each offense as determined by the
6    State Commission. A civil penalty shall be assessed by the
7    State Commission after a hearing is held in accordance with
8    the provisions set forth in this Act regarding the
9    provision of a hearing for the revocation or suspension of
10    a license.
11        (6) To hear and determine appeals from orders of a
12    local commission in accordance with the provisions of this
13    Act, as hereinafter set forth. Hearings under this
14    subsection shall be held in Springfield or Chicago, at
15    whichever location is the more convenient for the majority
16    of persons who are parties to the hearing.
17        (7) The State Commission commission shall establish
18    uniform systems of accounts to be kept by all retail
19    licensees having more than 4 employees, and for this
20    purpose the State Commission commission may classify all
21    retail licensees having more than 4 employees and establish
22    a uniform system of accounts for each class and prescribe
23    the manner in which such accounts shall be kept. The State
24    Commission commission may also prescribe the forms of
25    accounts to be kept by all retail licensees having more
26    than 4 employees, including but not limited to accounts of

 

 

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1    earnings and expenses and any distribution, payment, or
2    other distribution of earnings or assets, and any other
3    forms, records and memoranda which in the judgment of the
4    commission may be necessary or appropriate to carry out any
5    of the provisions of this Act, including but not limited to
6    such forms, records and memoranda as will readily and
7    accurately disclose at all times the beneficial ownership
8    of such retail licensed business. The accounts, forms,
9    records and memoranda shall be available at all reasonable
10    times for inspection by authorized representatives of the
11    State Commission or by any local liquor control
12    commissioner or his or her authorized representative. The
13    commission, may, from time to time, alter, amend or repeal,
14    in whole or in part, any uniform system of accounts, or the
15    form and manner of keeping accounts.
16        (8) In the conduct of any hearing authorized to be held
17    by the State Commission commission, to appoint, at the
18    commission's discretion, hearing officers to conduct
19    hearings involving complex issues or issues that will
20    require a protracted period of time to resolve, to examine,
21    or cause to be examined, under oath, any licensee, and to
22    examine or cause to be examined the books and records of
23    such licensee; to hear testimony and take proof material
24    for its information in the discharge of its duties
25    hereunder; to administer or cause to be administered oaths;
26    for any such purpose to issue subpoena or subpoenas to

 

 

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1    require the attendance of witnesses and the production of
2    books, which shall be effective in any part of this State,
3    and to adopt rules to implement its powers under this
4    paragraph (8).
5        Any circuit court may by order duly entered, require
6    the attendance of witnesses and the production of relevant
7    books subpoenaed by the State Commission and the court may
8    compel obedience to its order by proceedings for contempt.
9        (9) To investigate the administration of laws in
10    relation to alcoholic liquors in this and other states and
11    any foreign countries, and to recommend from time to time
12    to the Governor and through him or her to the legislature
13    of this State, such amendments to this Act, if any, as it
14    may think desirable and as will serve to further the
15    general broad purposes contained in Section 1-2 hereof.
16        (10) To adopt such rules and regulations consistent
17    with the provisions of this Act which shall be necessary
18    for the control, sale or disposition of alcoholic liquor
19    damaged as a result of an accident, wreck, flood, fire or
20    other similar occurrence.
21        (11) To develop industry educational programs related
22    to responsible serving and selling, particularly in the
23    areas of overserving consumers and illegal underage
24    purchasing and consumption of alcoholic beverages.
25        (11.1) To license persons providing education and
26    training to alcohol beverage sellers and servers for

 

 

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1    mandatory and non-mandatory training under the Beverage
2    Alcohol Sellers and Servers Education and Training
3    (BASSET) programs and to develop and administer a public
4    awareness program in Illinois to reduce or eliminate the
5    illegal purchase and consumption of alcoholic beverage
6    products by persons under the age of 21. Application for a
7    license shall be made on forms provided by the State
8    Commission.
9        (12) To develop and maintain a repository of license
10    and regulatory information.
11        (13) (Blank).
12        (14) On or before April 30, 2008 and every 2 years
13    thereafter, the State Commission shall present a written
14    report to the Governor and the General Assembly that shall
15    be based on a study of the impact of Public Act 95-634 on
16    the business of soliciting, selling, and shipping wine from
17    inside and outside of this State directly to residents of
18    this State. As part of its report, the State Commission
19    shall provide all of the following information:
20            (A) The amount of State excise and sales tax
21        revenues generated.
22            (B) The amount of licensing fees received.
23            (C) The number of cases of wine shipped from inside
24        and outside of this State directly to residents of this
25        State.
26            (D) The number of alcohol compliance operations

 

 

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1        conducted.
2            (E) The number of winery shipper's licenses
3        issued.
4            (F) The number of each of the following: reported
5        violations; cease and desist notices issued by the
6        Commission; notices of violations issued by the
7        Commission and to the Department of Revenue; and
8        notices and complaints of violations to law
9        enforcement officials, including, without limitation,
10        the Illinois Attorney General and the U.S. Department
11        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
12        (15) As a means to reduce the underage consumption of
13    alcoholic liquors, the State Commission shall conduct
14    alcohol compliance operations to investigate whether
15    businesses that are soliciting, selling, and shipping wine
16    from inside or outside of this State directly to residents
17    of this State are licensed by this State or are selling or
18    attempting to sell wine to persons under 21 years of age in
19    violation of this Act.
20        (16) The State Commission shall, in addition to
21    notifying any appropriate law enforcement agency, submit
22    notices of complaints or violations of Sections 6-29 and
23    6-29.1 by persons who do not hold a winery shipper's
24    license under this Act to the Illinois Attorney General and
25    to the U.S. Department of Treasury's Alcohol and Tobacco
26    Tax and Trade Bureau.

 

 

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1        (17)(A) A person licensed to make wine under the laws
2    of another state who has a winery shipper's license under
3    this Act and annually produces less than 25,000 gallons of
4    wine or a person who has a first-class or second-class wine
5    manufacturer's license, a first-class or second-class
6    wine-maker's license, or a limited wine manufacturer's
7    license under this Act and annually produces less than
8    25,000 gallons of wine may make application to the
9    Commission for a self-distribution exemption to allow the
10    sale of not more than 5,000 gallons of the exemption
11    holder's wine to retail licensees per year.
12        (B) In the application, which shall be sworn under
13    penalty of perjury, such person shall state (1) the date it
14    was established; (2) its volume of production and sales for
15    each year since its establishment; (3) its efforts to
16    establish distributor relationships; (4) that a
17    self-distribution exemption is necessary to facilitate the
18    marketing of its wine; and (5) that it will comply with the
19    liquor and revenue laws of the United States, this State,
20    and any other state where it is licensed.
21        (C) The State Commission shall approve the application
22    for a self-distribution exemption if such person: (1) is in
23    compliance with State revenue and liquor laws; (2) is not a
24    member of any affiliated group that produces more than
25    25,000 gallons of wine per annum or produces any other
26    alcoholic liquor; (3) will not annually produce for sale

 

 

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1    more than 25,000 gallons of wine; and (4) will not annually
2    sell more than 5,000 gallons of its wine to retail
3    licensees.
4        (D) A self-distribution exemption holder shall
5    annually certify to the State Commission its production of
6    wine in the previous 12 months and its anticipated
7    production and sales for the next 12 months. The State
8    Commission may fine, suspend, or revoke a
9    self-distribution exemption after a hearing if it finds
10    that the exemption holder has made a material
11    misrepresentation in its application, violated a revenue
12    or liquor law of Illinois, exceeded production of 25,000
13    gallons of wine in any calendar year, or become part of an
14    affiliated group producing more than 25,000 gallons of wine
15    or any other alcoholic liquor.
16        (E) Except in hearings for violations of this Act or
17    Public Act 95-634 or a bona fide investigation by duly
18    sworn law enforcement officials, the State Commission, or
19    its agents, the State Commission shall maintain the
20    production and sales information of a self-distribution
21    exemption holder as confidential and shall not release such
22    information to any person.
23        (F) The State Commission shall issue regulations
24    governing self-distribution exemptions consistent with
25    this Section and this Act.
26        (G) Nothing in this paragraph subsection (17) shall

 

 

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1    prohibit a self-distribution exemption holder from
2    entering into or simultaneously having a distribution
3    agreement with a licensed Illinois distributor.
4        (H) It is the intent of this paragraph subsection (17)
5    to promote and continue orderly markets. The General
6    Assembly finds that in order to preserve Illinois'
7    regulatory distribution system it is necessary to create an
8    exception for smaller makers of wine as their wines are
9    frequently adjusted in varietals, mixes, vintages, and
10    taste to find and create market niches sometimes too small
11    for distributor or importing distributor business
12    strategies. Limited self-distribution rights will afford
13    and allow smaller makers of wine access to the marketplace
14    in order to develop a customer base without impairing the
15    integrity of the 3-tier system.
16        (18)(A) A class 1 brewer licensee, who must also be
17    either a licensed brewer or licensed non-resident dealer
18    and annually manufacture less than 930,000 gallons of beer,
19    may make application to the State Commission for a
20    self-distribution exemption to allow the sale of not more
21    than 232,500 gallons of the exemption holder's beer per
22    year to retail licensees and to brewers, class 1 brewers,
23    and class 2 brewers that, pursuant to subsection (e) of
24    Section 6-4 of this Act, sell beer, cider, or both beer and
25    cider to non-licensees at their breweries.
26        (B) In the application, which shall be sworn under

 

 

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1    penalty of perjury, the class 1 brewer licensee shall state
2    (1) the date it was established; (2) its volume of beer
3    manufactured and sold for each year since its
4    establishment; (3) its efforts to establish distributor
5    relationships; (4) that a self-distribution exemption is
6    necessary to facilitate the marketing of its beer; and (5)
7    that it will comply with the alcoholic beverage and revenue
8    laws of the United States, this State, and any other state
9    where it is licensed.
10        (C) Any application submitted shall be posted on the
11    State Commission's website at least 45 days prior to action
12    by the State Commission. The State Commission shall approve
13    the application for a self-distribution exemption if the
14    class 1 brewer licensee: (1) is in compliance with the
15    State, revenue, and alcoholic beverage laws; (2) is not a
16    member of any affiliated group that manufactures more than
17    930,000 gallons of beer per annum or produces any other
18    alcoholic beverages; (3) shall not annually manufacture
19    for sale more than 930,000 gallons of beer; (4) shall not
20    annually sell more than 232,500 gallons of its beer to
21    retail licensees or to brewers, class 1 brewers, and class
22    2 brewers that, pursuant to subsection (e) of Section 6-4
23    of this Act, sell beer, cider, or both beer and cider to
24    non-licensees at their breweries; and (5) has relinquished
25    any brew pub license held by the licensee, including any
26    ownership interest it held in the licensed brew pub.

 

 

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1        (D) A self-distribution exemption holder shall
2    annually certify to the State Commission its manufacture of
3    beer during the previous 12 months and its anticipated
4    manufacture and sales of beer for the next 12 months. The
5    State Commission may fine, suspend, or revoke a
6    self-distribution exemption after a hearing if it finds
7    that the exemption holder has made a material
8    misrepresentation in its application, violated a revenue
9    or alcoholic beverage law of Illinois, exceeded the
10    manufacture of 930,000 gallons of beer in any calendar year
11    or became part of an affiliated group manufacturing more
12    than 930,000 gallons of beer or any other alcoholic
13    beverage.
14        (E) The State Commission shall issue rules and
15    regulations governing self-distribution exemptions
16    consistent with this Act.
17        (F) Nothing in this paragraph (18) shall prohibit a
18    self-distribution exemption holder from entering into or
19    simultaneously having a distribution agreement with a
20    licensed Illinois importing distributor or a distributor.
21    If a self-distribution exemption holder enters into a
22    distribution agreement and has assigned distribution
23    rights to an importing distributor or distributor, then the
24    self-distribution exemption holder's distribution rights
25    in the assigned territories shall cease in a reasonable
26    time not to exceed 60 days.

 

 

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1        (G) It is the intent of this paragraph (18) to promote
2    and continue orderly markets. The General Assembly finds
3    that in order to preserve Illinois' regulatory
4    distribution system, it is necessary to create an exception
5    for smaller manufacturers in order to afford and allow such
6    smaller manufacturers of beer access to the marketplace in
7    order to develop a customer base without impairing the
8    integrity of the 3-tier system.
9    (b) On or before April 30, 1999, the Commission shall
10present a written report to the Governor and the General
11Assembly that shall be based on a study of the impact of Public
12Act 90-739 on the business of soliciting, selling, and shipping
13alcoholic liquor from outside of this State directly to
14residents of this State.
15    As part of its report, the Commission shall provide the
16following information:
17        (i) the amount of State excise and sales tax revenues
18    generated as a result of Public Act 90-739;
19        (ii) the amount of licensing fees received as a result
20    of Public Act 90-739;
21        (iii) the number of reported violations, the number of
22    cease and desist notices issued by the Commission, the
23    number of notices of violations issued to the Department of
24    Revenue, and the number of notices and complaints of
25    violations to law enforcement officials.
26(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;

 

 

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1100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.
28-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
3revised 10-24-18.)
 
4    (235 ILCS 5/8-2)  (from Ch. 43, par. 159)
5    Sec. 8-2. Payments; reports. It is the duty of each
6manufacturer with respect to alcoholic liquor produced or
7imported by such manufacturer, or purchased tax-free by such
8manufacturer from another manufacturer or importing
9distributor, and of each importing distributor as to alcoholic
10liquor purchased by such importing distributor from foreign
11importers or from anyone from any point in the United States
12outside of this State or purchased tax-free from another
13manufacturer or importing distributor, to pay the tax imposed
14by Section 8-1 to the Department of Revenue on or before the
1515th day of the calendar month following the calendar month in
16which such alcoholic liquor is sold or used by such
17manufacturer or by such importing distributor other than in an
18authorized tax-free manner or to pay that tax electronically as
19provided in this Section.
20    Each manufacturer and each importing distributor shall
21make payment under one of the following methods: (1) on or
22before the 15th day of each calendar month, file in person or
23by United States first-class mail, postage pre-paid, with the
24Department of Revenue, on forms prescribed and furnished by the
25Department, a report in writing in such form as may be required

 

 

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1by the Department in order to compute, and assure the accuracy
2of, the tax due on all taxable sales and uses of alcoholic
3liquor occurring during the preceding month. Payment of the tax
4in the amount disclosed by the report shall accompany the
5report or, (2) on or before the 15th day of each calendar
6month, electronically file with the Department of Revenue, on
7forms prescribed and furnished by the Department, an electronic
8report in such form as may be required by the Department in
9order to compute, and assure the accuracy of, the tax due on
10all taxable sales and uses of alcoholic liquor occurring during
11the preceding month. An electronic payment of the tax in the
12amount disclosed by the report shall accompany the report. A
13manufacturer or distributor who files an electronic report and
14electronically pays the tax imposed pursuant to Section 8-1 to
15the Department of Revenue on or before the 15th day of the
16calendar month following the calendar month in which such
17alcoholic liquor is sold or used by that manufacturer or
18importing distributor other than in an authorized tax-free
19manner shall pay to the Department the amount of the tax
20imposed pursuant to Section 8-1, less a discount which is
21allowed to reimburse the manufacturer or importing distributor
22for the expenses incurred in keeping and maintaining records,
23preparing and filing the electronic returns, remitting the tax,
24and supplying data to the Department upon request.
25    The discount shall be in an amount as follows:
26        (1) For original returns due on or after January 1,

 

 

HB2577 Enrolled- 21 -LRB101 06994 RPS 52027 b

1    2003 through September 30, 2003, the discount shall be
2    1.75% or $1,250 per return, whichever is less;
3        (2) For original returns due on or after October 1,
4    2003 through September 30, 2004, the discount shall be 2%
5    or $3,000 per return, whichever is less; and
6        (3) For original returns due on or after October 1,
7    2004, the discount shall be 2% or $2,000 per return,
8    whichever is less.
9    The Department may, if it deems it necessary in order to
10insure the payment of the tax imposed by this Article, require
11returns to be made more frequently than and covering periods of
12less than a month. Such return shall contain such further
13information as the Department may reasonably require.
14    It shall be presumed that all alcoholic liquors acquired or
15made by any importing distributor or manufacturer have been
16sold or used by him in this State and are the basis for the tax
17imposed by this Article unless proven, to the satisfaction of
18the Department, that such alcoholic liquors are (1) still in
19the possession of such importing distributor or manufacturer,
20or (2) prior to the termination of possession have been lost by
21theft or through unintentional destruction, or (3) that such
22alcoholic liquors are otherwise exempt from taxation under this
23Act.
24    If any payment provided for in this Section exceeds the
25manufacturer's or importing distributor's liabilities under
26this Act, as shown on an original report, the manufacturer or

 

 

HB2577 Enrolled- 22 -LRB101 06994 RPS 52027 b

1importing distributor may credit such excess payment against
2liability subsequently to be remitted to the Department under
3this Act, in accordance with reasonable rules adopted by the
4Department. If the Department subsequently determines that all
5or any part of the credit taken was not actually due to the
6manufacturer or importing distributor, the manufacturer's or
7importing distributor's discount shall be reduced by an amount
8equal to the difference between the discount as applied to the
9credit taken and that actually due, and the manufacturer or
10importing distributor shall be liable for penalties and
11interest on such difference.
12    The Department may require any foreign importer to file
13monthly information returns, by the 15th day of the month
14following the month which any such return covers, if the
15Department determines this to be necessary to the proper
16performance of the Department's functions and duties under this
17Act. Such return shall contain such information as the
18Department may reasonably require.
19    Every manufacturer and importing distributor, except for a
20manufacturer or importing distributor that in the preceding
21year had less than $50,000 of tax liability under this Article,
22shall also file, with the Department, a bond in an amount not
23less than $1,000 and not to exceed $100,000 on a form to be
24approved by, and with a surety or sureties satisfactory to, the
25Department. Such bond shall be conditioned upon the
26manufacturer or importing distributor paying to the Department

 

 

HB2577 Enrolled- 23 -LRB101 06994 RPS 52027 b

1all monies becoming due from such manufacturer or importing
2distributor under this Article. The Department shall fix the
3penalty of such bond in each case, taking into consideration
4the amount of alcoholic liquor expected to be sold and used by
5such manufacturer or importing distributor, and the penalty
6fixed by the Department shall be sufficient, in the
7Department's opinion, to protect the State of Illinois against
8failure to pay any amount due under this Article, but the
9amount of the penalty fixed by the Department shall not exceed
10twice the amount of tax liability of a monthly return, nor
11shall the amount of such penalty be less than $1,000. The
12Department shall notify the State Commission of the
13Department's approval or disapproval of any such
14manufacturer's or importing distributor's bond, or of the
15termination or cancellation of any such bond, or of the
16Department's direction to a manufacturer or importing
17distributor that he must file additional bond in order to
18comply with this Section. The Commission shall not issue a
19license to any applicant for a manufacturer's or importing
20distributor's license unless the Commission has received a
21notification from the Department showing that such applicant
22has filed a satisfactory bond with the Department hereunder and
23that such bond has been approved by the Department. Failure by
24any licensed manufacturer or importing distributor to keep a
25satisfactory bond in effect with the Department or to furnish
26additional bond to the Department, when required hereunder by

 

 

HB2577 Enrolled- 24 -LRB101 06994 RPS 52027 b

1the Department to do so, shall be grounds for the revocation or
2suspension of such manufacturer's or importing distributor's
3license by the Commission. If a manufacturer or importing
4distributor fails to pay any amount due under this Article, his
5bond with the Department shall be deemed forfeited, and the
6Department may institute a suit in its own name on such bond.
7    After notice and opportunity for a hearing the State
8Commission may revoke or suspend the license of any
9manufacturer or importing distributor who fails to comply with
10the provisions of this Section. Notice of such hearing and the
11time and place thereof shall be in writing and shall contain a
12statement of the charges against the licensee. Such notice may
13be given by United States registered or certified mail with
14return receipt requested, addressed to the person concerned at
15his last known address and shall be given not less than 7 days
16prior to the date fixed for the hearing. An order revoking or
17suspending a license under the provisions of this Section may
18be reviewed in the manner provided in Section 7-10 of this Act.
19No new license shall be granted to a person whose license has
20been revoked for a violation of this Section or, in case of
21suspension, shall such suspension be terminated until he has
22paid to the Department all taxes and penalties which he owes
23the State under the provisions of this Act.
24    Every manufacturer or importing distributor who has, as
25verified by the Department, continuously complied with the
26conditions of the bond under this Act for a period of 2 years

 

 

HB2577 Enrolled- 25 -LRB101 06994 RPS 52027 b

1shall be considered to be a prior continuous compliance
2taxpayer. In determining the consecutive period of time for
3qualification as a prior continuous compliance taxpayer, any
4consecutive period of time of qualifying compliance
5immediately prior to the effective date of this amendatory Act
6of 1987 shall be credited to any manufacturer or importing
7distributor.
8    A manufacturer or importing distributor that is a prior
9continuous compliance taxpayer under this Section and becomes a
10successor as the result of an acquisition, merger, or
11consolidation of a manufacturer or importing distributor shall
12be deemed to be a prior continuous compliance taxpayer with
13respect to the acquired, merged, or consolidated entity.
14    Every prior continuous compliance taxpayer shall be exempt
15from the bond requirements of this Act until the Department has
16determined the taxpayer to be delinquent in the filing of any
17return or deficient in the payment of any tax under this Act.
18Any taxpayer who fails to pay an admitted or established
19liability under this Act may also be required to post bond or
20other acceptable security with the Department guaranteeing the
21payment of such admitted or established liability.
22    The Department shall discharge any surety and shall release
23and return any bond or security deposit assigned, pledged or
24otherwise provided to it by a taxpayer under this Section
25within 30 days after: (1) such taxpayer becomes a prior
26continuous compliance taxpayer; or (2) such taxpayer has ceased

 

 

HB2577 Enrolled- 26 -LRB101 06994 RPS 52027 b

1to collect receipts on which he is required to remit tax to the
2Department, has filed a final tax return, and has paid to the
3Department an amount sufficient to discharge his remaining tax
4liability as determined by the Department under this Act.
5(Source: P.A. 100-1171, eff. 1-4-19.)
 
6    (235 ILCS 5/10-1)  (from Ch. 43, par. 183)
7    Sec. 10-1. Violations; penalties. Whereas a substantial
8threat to the sound and careful control, regulation, and
9taxation of the manufacture, sale, and distribution of
10alcoholic liquors exists by virtue of individuals who
11manufacture, import, distribute, or sell alcoholic liquors
12within the State without having first obtained a valid license
13to do so, and whereas such threat is especially serious along
14the borders of this State, and whereas such threat requires
15immediate correction by this Act, by active investigation and
16prosecution by the State Commission, law enforcement
17officials, and prosecutors, and by prompt and strict
18enforcement through the courts of this State to punish
19violators and to deter such conduct in the future:
20    (a) Any person who manufactures, imports for distribution
21or use, transports from outside this State into this State, or
22distributes or sells 108 liters (28.53 gallons) or more of
23wine, 45 liters (11.88 gallons) or more of distilled spirits,
24or 118 liters (31.17 gallons) or more of beer at any place
25within the State without having first obtained a valid license

 

 

HB2577 Enrolled- 27 -LRB101 06994 RPS 52027 b

1to do so under the provisions of this Act shall be guilty of a
2Class 4 felony for each offense. However, any person who was
3duly licensed under this Act and whose license expired within
430 days prior to a violation shall be guilty of a business
5offense and fined not more than $1,000 for the first such
6offense and shall be guilty of a Class 4 felony for each
7subsequent offense.
8    Any person who manufactures, imports for distribution,
9transports from outside this State into this State for sale or
10resale in this State, or distributes or sells less than 108
11liters (28.53 gallons) of wine, less than 45 liters (11.88
12gallons) of distilled spirits, or less than 118 liters (31.17
13gallons) of beer at any place within the State without having
14first obtained a valid license to do so under the provisions of
15this Act shall be guilty of a business offense and fined not
16more than $1,000 for the first such offense and shall be guilty
17of a Class 4 felony for each subsequent offense. This
18subsection does not apply to a motor carrier or freight
19forwarder, as defined in Section 13102 of Title 49 of the
20United States Code, an air carrier, as defined in Section 40102
21of Title 49 of the United States Code, or a rail carrier, as
22defined in Section 10102 of Title 49 of the United States Code.
23    Any person who: (1) both has been issued an initial cease
24and desist notice from the State Commission; and (2) for
25compensation, does any of the following: (i) ships alcoholic
26liquor into this State without a license authorized by Section

 

 

HB2577 Enrolled- 28 -LRB101 06994 RPS 52027 b

15-1 issued by the State Commission or in violation of that
2license; or (ii) manufactures, imports for distribution,
3transports from outside this State into this State for sale or
4resale in this State, or distributes or sells alcoholic liquors
5at any place without having first obtained a valid license to
6do so is guilty of a Class 4 felony for each offense.
7    (b) (1) Any retailer, caterer retailer, brew pub, special
8event retailer, special use permit holder, homebrewer special
9event permit holder, or craft distiller tasting permit holder
10who knowingly causes alcoholic liquors to be imported directly
11into the State of Illinois from outside of the State for the
12purpose of furnishing, giving, or selling to another, except
13when having received the product from a duly licensed
14distributor or importing distributor, licensed in this State,
15who knowingly causes to furnish, give, sell, or otherwise being
16within the State, any alcoholic liquor destined to be used,
17distributed, consumed or sold in another state, unless such
18alcoholic liquor was received in this State by a duly licensed
19distributor, or importing distributors shall have his license
20suspended for 30 7 days for the first offense and for the
21second offense, shall have his license revoked by the
22Commission.
23    (2) In the event the State Commission receives a certified
24copy of a final order from a foreign jurisdiction that an
25Illinois retail licensee has been found to have violated that
26foreign jurisdiction's laws, rules, or regulations concerning

 

 

HB2577 Enrolled- 29 -LRB101 06994 RPS 52027 b

1the importation of alcoholic liquor into that foreign
2jurisdiction, the violation may be grounds for the State
3Commission to revoke, suspend, or refuse to issue or renew a
4license, to impose a fine, or to take any additional action
5provided by this Act with respect to the Illinois retail
6license or licensee. Any such action on the part of the State
7Commission shall be in accordance with this Act and
8implementing rules.
9    For the purposes of paragraph (2): (i) "foreign
10jurisdiction" means a state, territory, or possession of the
11United States, the District of Columbia, or the Commonwealth of
12Puerto Rico, and (ii) "final order" means an order or judgment
13of a court or administrative body that determines the rights of
14the parties respecting the subject matter of the proceeding,
15that remains in full force and effect, and from which no appeal
16can be taken.
17    (c) Any person who shall make any false statement or
18otherwise violates any of the provisions of this Act in
19obtaining any license hereunder, or who having obtained a
20license hereunder shall violate any of the provisions of this
21Act with respect to the manufacture, possession, distribution
22or sale of alcoholic liquor, or with respect to the maintenance
23of the licensed premises, or shall violate any other provision
24of this Act, shall for a first offense be guilty of a petty
25offense and fined not more than $500, and for a second or
26subsequent offense shall be guilty of a Class B misdemeanor.

 

 

HB2577 Enrolled- 30 -LRB101 06994 RPS 52027 b

1    (c-5) Any owner of an establishment that serves alcohol on
2its premises, if more than 50% of the establishment's gross
3receipts within the prior 3 months is from the sale of alcohol,
4who knowingly fails to prohibit concealed firearms on its
5premises or who knowingly makes a false statement or record to
6avoid the prohibition of concealed firearms on its premises
7under the Firearm Concealed Carry Act shall be guilty of a
8business offense with a fine up to $5,000.
9    (d) Each day any person engages in business as a
10manufacturer, foreign importer, importing distributor,
11distributor or retailer in violation of the provisions of this
12Act shall constitute a separate offense.
13    (e) Any person, under the age of 21 years who, for the
14purpose of buying, accepting or receiving alcoholic liquor from
15a licensee, represents that he is 21 years of age or over shall
16be guilty of a Class A misdemeanor.
17    (f) In addition to the penalties herein provided, any
18person licensed as a wine-maker in either class who
19manufactures more wine than authorized by his license shall be
20guilty of a business offense and shall be fined $1 for each
21gallon so manufactured.
22    (g) A person shall be exempt from prosecution for a
23violation of this Act if he is a peace officer in the
24enforcement of the criminal laws and such activity is approved
25in writing by one of the following:
26        (1) In all counties, the respective State's Attorney;

 

 

HB2577 Enrolled- 31 -LRB101 06994 RPS 52027 b

1        (2) The Director of State Police under Section 2605-10,
2    2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
3    2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
4    2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
5    2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
6    2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
7    2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
8    2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
9    Department of State Police Law (20 ILCS 2605/2605-10,
10    2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
11    2605/2605-110, 2605/2605-115, 2605/2605-120,
12    2605/2605-130, 2605/2605-140, 2605/2605-190,
13    2605/2605-200, 2605/2605-205, 2605/2605-210,
14    2605/2605-215, 2605/2605-250, 2605/2605-275,
15    2605/2605-300, 2605/2605-305, 2605/2605-315,
16    2605/2605-325, 2605/2605-335, 2605/2605-340,
17    2605/2605-350, 2605/2605-355, 2605/2605-360,
18    2605/2605-365, 2605/2605-375, 2605/2605-390,
19    2605/2605-400, 2605/2605-405, 2605/2605-420,
20    2605/2605-430, 2605/2605-435, 2605/2605-500,
21    2605/2605-525, or 2605/2605-550); or
22        (3) In cities over 1,000,000, the Superintendent of
23    Police.
24(Source: P.A. 98-63, eff. 7-9-13; 99-904, eff. 1-1-17.)
 
25    (235 ILCS 5/10-7.1)  (from Ch. 43, par. 189.1)

 

 

HB2577 Enrolled- 32 -LRB101 06994 RPS 52027 b

1    Sec. 10-7.1. The State Commission, upon receipt of a
2complaint or upon having knowledge that any person is engaged
3in the business as a manufacturer, importing distributor,
4distributor, or retailer without a license or valid license,
5shall conduct an investigation. If, after conducting an
6investigation, the State Commission is satisfied that the
7alleged conduct occurred or is occurring, it may issue a cease
8and desist notice as provided in this Act, issue civil
9penalties as provided in this Act, notify the Department of
10Revenue and the local liquor authority, or and file a complaint
11with the State's Attorney's Office of the County where the
12incident occurred or with the Attorney General initiate an
13investigation with the appropriate law enforcement officials.
14(Source: P.A. 90-739, eff. 8-13-98.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law, except that the changes to Section 8-2 of the
17Liquor Control Act of 1934 take effect upon becoming law.