93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4119

 

Introduced 1/15/2004, by Sidney H. Mathias

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/3-12  from Ch. 43, par. 108
235 ILCS 5/6-2   from Ch. 43, par. 120

    Amends the Liquor Control Act of 1934. Provides that an action by the Illinois Liquor Control Commission to revoke or suspend a licensee's license for a violation of the Act shall be limited to the license for the specific premises where the violation occurred.


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A BILL FOR

 

HB4119 LRB093 16708 LRD 42359 b

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

 

 

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1     regulation issued pursuant thereto and in effect for 30
2     days prior to such violation. The fine imposed under this
3     paragraph may not exceed $500 for each violation. Each day
4     that the activity, which gave rise to the original fine,
5     continues is a separate violation. The maximum fine that
6     may be levied against any licensee, for the period of the
7     license, shall not exceed $20,000. The maximum penalty that
8     may be imposed on a licensee for selling a bottle of
9     alcoholic liquor with a foreign object in it or serving
10     from a bottle of alcoholic liquor with a foreign object in
11     it shall be the destruction of that bottle of alcoholic
12     liquor for the first 10 bottles so sold or served from by
13     the licensee. For the eleventh bottle of alcoholic liquor
14     and for each third bottle thereafter sold or served from by
15     the licensee with a foreign object in it, the maximum
16     penalty that may be imposed on the licensee is the
17     destruction of the bottle of alcoholic liquor and a fine of
18     up to $50.
19         (2) To adopt such rules and regulations consistent with
20     the provisions of this Act which shall be necessary to
21     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 of
28     the State, county and municipal governments, county and
29     city police departments and upon prosecuting officers for
30     such information and assistance as it deems necessary in
31     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
35     State.
36         (5) To inspect, or cause to be inspected, any premises

 

 

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1     in this State where alcoholic liquors are manufactured,
2     distributed, warehoused, or sold.
3         (5.1) Upon receipt of a complaint or upon having
4     knowledge that any person is engaged in business as a
5     manufacturer, importing distributor, distributor, or
6     retailer without a license or valid license, to notify the
7     local liquor authority, file a complaint with the State's
8     Attorney's Office of the county where the incident
9     occurred, or initiate an investigation with the
10     appropriate law enforcement officials.
11         (5.2) To issue a cease and desist notice to persons
12     shipping alcoholic liquor into this State from a point
13     outside of this State if the shipment is in violation of
14     this Act.
15         (5.3) To receive complaints from licensees, local
16     officials, law enforcement agencies, organizations, and
17     persons stating that any licensee has been or is violating
18     any provision of this Act or the rules and regulations
19     issued pursuant to this Act. Such complaints shall be in
20     writing, signed and sworn to by the person making the
21     complaint, and shall state with specificity the facts in
22     relation to the alleged violation. If the Commission has
23     reasonable grounds to believe that the complaint
24     substantially alleges a violation of this Act or rules and
25     regulations adopted pursuant to this Act, it shall conduct
26     an investigation. If, after conducting an investigation,
27     the Commission is satisfied that the alleged violation did
28     occur, it shall proceed with disciplinary action against
29     the licensee as provided in this Act.
30         (6) To hear and determine appeals from orders of a
31     local commission in accordance with the provisions of this
32     Act, as hereinafter set forth. Hearings under this
33     subsection shall be held in Springfield or Chicago, at
34     whichever location is the more convenient for the majority
35     of persons who are parties to the hearing.
36         (7) The commission shall establish uniform systems of

 

 

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

 

 

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1     implement its powers under this paragraph (8).
2         Any Circuit Court may by order duly entered, require
3     the attendance of witnesses and the production of relevant
4     books subpoenaed by the State commission and the court may
5     compel obedience to its order by proceedings for contempt.
6         (9) To investigate the administration of laws in
7     relation to alcoholic liquors in this and other states and
8     any foreign countries, and to recommend from time to time
9     to the Governor and through him or her to the legislature
10     of this State, such amendments to this Act, if any, as it
11     may think desirable and as will serve to further the
12     general broad purposes contained in Section 1-2 hereof.
13         (10) To adopt such rules and regulations consistent
14     with the provisions of this Act which shall be necessary
15     for the control, sale or disposition of alcoholic liquor
16     damaged as a result of an accident, wreck, flood, fire or
17     other similar occurrence.
18         (11) To develop industry educational programs related
19     to responsible serving and selling, particularly in the
20     areas of overserving consumers and illegal underage
21     purchasing and consumption of alcoholic beverages.
22         (11.1) To license persons providing education and
23     training to alcohol beverage sellers and servers under the
24     Beverage Alcohol Sellers and Servers Education and
25     Training (BASSET) programs and to develop and administer a
26     public awareness program in Illinois to reduce or eliminate
27     the illegal purchase and consumption of alcoholic beverage
28     products by persons under the age of 21. Application for a
29     license shall be made on forms provided by the State
30     Commission.
31         (12) To develop and maintain a repository of license
32     and regulatory information.
33         (13) On or before January 15, 1994, the Commission
34     shall issue a written report to the Governor and General
35     Assembly that is to be based on a comprehensive study of
36     the impact on and implications for the State of Illinois of

 

 

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1     Section 1926 of the Federal ADAMHA Reorganization Act of
2     1992 (Public Law 102-321). This study shall address the
3     extent to which Illinois currently complies with the
4     provisions of P.L. 102-321 and the rules promulgated
5     pursuant thereto.
6         As part of its report, the Commission shall provide the
7     following essential information:
8             (i) the number of retail distributors of tobacco
9         products, by type and geographic area, in the State;
10             (ii) the number of reported citations and
11         successful convictions, categorized by type and
12         location of retail distributor, for violation of the
13         Sale of Tobacco to Minors Act and the Smokeless Tobacco
14         Limitation Act;
15             (iii) the extent and nature of organized
16         educational and governmental activities that are
17         intended to promote, encourage or otherwise secure
18         compliance with any Illinois laws that prohibit the
19         sale or distribution of tobacco products to minors; and
20             (iv) the level of access and availability of
21         tobacco products to individuals under the age of 18.
22     To obtain the data necessary to comply with the provisions
23 of P.L. 102-321 and the requirements of this report, the
24 Commission shall conduct random, unannounced inspections of a
25 geographically and scientifically representative sample of the
26 State's retail tobacco distributors.
27     The Commission shall consult with the Department of Public
28 Health, the Department of Human Services, the Illinois State
29 Police and any other executive branch agency, and private
30 organizations that may have information relevant to this
31 report.
32     The Commission may contract with the Food and Drug
33 Administration of the U.S. Department of Health and Human
34 Services to conduct unannounced investigations of Illinois
35 tobacco vendors to determine compliance with federal laws
36 relating to the illegal sale of cigarettes and smokeless

 

 

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1 tobacco products to persons under the age of 18.
2     (b) On or before April 30, 1999, the Commission shall
3 present a written report to the Governor and the General
4 Assembly that shall be based on a study of the impact of this
5 amendatory Act of 1998 on the business of soliciting, selling,
6 and shipping alcoholic liquor from outside of this State
7 directly to residents of this State.
8     As part of its report, the Commission shall provide the
9 following information:
10         (i) the amount of State excise and sales tax revenues
11     generated as a result of this amendatory Act of 1998;
12         (ii) the amount of licensing fees received as a result
13     of this amendatory Act of 1998;
14         (iii) the number of reported violations, the number of
15     cease and desist notices issued by the Commission, the
16     number of notices of violations issued to the Department of
17     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.)
 
21     (235 ILCS 5/6-2)  (from Ch. 43, par. 120)
22     Sec. 6-2. Issuance of licenses to certain persons
23 prohibited.
24     (a) Except as otherwise provided in subsection (b) of this
25 Section and in paragraph (1) of subsection (a) of Section 3-12,
26 no license of any kind issued by the State Commission or any
27 local commission shall be issued to:
28         (1) A person who is not a resident of any city, village
29     or county in which the premises covered by the license are
30     located; except in case of railroad or boat licenses.
31         (2) A person who is not of good character and
32     reputation in the community in which he resides.
33         (3) A person who is not a citizen of the United States.
34         (4) A person who has been convicted of a felony under
35     any Federal or State law, unless the Commission determines

 

 

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1     that such person has been sufficiently rehabilitated to
2     warrant the public trust after considering matters set
3     forth in such person's application and the Commission's
4     investigation. The burden of proof of sufficient
5     rehabilitation shall be on the applicant.
6         (5) A person who has been convicted of being the keeper
7     or is keeping a house of ill fame.
8         (6) A person who has been convicted of pandering or
9     other crime or misdemeanor opposed to decency and morality.
10         (7) A person whose license issued under this Act has
11     been revoked for cause.
12         (8) A person who at the time of application for renewal
13     of any license issued hereunder would not be eligible for
14     such license upon a first application.
15         (9) A copartnership, if any general partnership
16     thereof, or any limited partnership thereof, owning more
17     than 5% of the aggregate limited partner interest in such
18     copartnership would not be eligible to receive a license
19     hereunder for any reason other than residence within the
20     political subdivision, unless residency is required by
21     local ordinance.
22         (10) A corporation, if any officer, manager or director
23     thereof, or any stockholder or stockholders owning in the
24     aggregate more than 5% of the stock of such corporation,
25     would not be eligible to receive a license hereunder for
26     any reason other than citizenship and residence within the
27     political subdivision.
28         (10a) A corporation unless it is incorporated in
29     Illinois, or unless it is a foreign corporation which is
30     qualified under the Business Corporation Act of 1983 to
31     transact business in Illinois.
32         (11) A person whose place of business is conducted by a
33     manager or agent unless the manager or agent possesses the
34     same qualifications required by the licensee.
35         (12) A person who has been convicted of a violation of
36     any Federal or State law concerning the manufacture,

 

 

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1     possession or sale of alcoholic liquor, subsequent to the
2     passage of this Act or has forfeited his bond to appear in
3     court to answer charges for any such violation.
4         (13) A person who does not beneficially own the
5     premises for which a license is sought, or does not have a
6     lease thereon for the full period for which the license is
7     to be issued.
8         (14) Any law enforcing public official, including
9     members of local liquor control commissions, any mayor,
10     alderman, or member of the city council or commission, any
11     president of the village board of trustees, any member of a
12     village board of trustees, or any president or member of a
13     county board; and no such official shall be interested
14     directly in the manufacture, sale, or distribution of
15     alcoholic liquor, except that a license may be granted to
16     such official in relation to premises that are not located
17     within the territory subject to the jurisdiction of that
18     official if the issuance of such license is approved by the
19     State Liquor Control Commission and except that a license
20     may be granted, in a city or village with a population of
21     50,000 or less, to any alderman, member of a city council,
22     or member of a village board of trustees in relation to
23     premises that are located within the territory subject to
24     the jurisdiction of that official if (i) the sale of
25     alcoholic liquor pursuant to the license is incidental to
26     the selling of food, (ii) the issuance of the license is
27     approved by the State Commission, (iii) the issuance of the
28     license is in accordance with all applicable local
29     ordinances in effect where the premises are located, and
30     (iv) the official granted a license does not vote on
31     alcoholic liquor issues pending before the board or council
32     to which the license holder is elected.
33         (15) A person who is not a beneficial owner of the
34     business to be operated by the licensee.
35         (16) A person who has been convicted of a gambling
36     offense as proscribed by any of subsections (a) (3) through

 

 

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1     (a) (11) of Section 28-1 of, or as proscribed by Section
2     28-1.1 or 28-3 of, the Criminal Code of 1961, or as
3     proscribed by a statute replaced by any of the aforesaid
4     statutory provisions.
5         (17) A person or entity to whom a federal wagering
6     stamp has been issued by the federal government, unless the
7     person or entity is eligible to be issued a license under
8     the Raffles Act or the Illinois Pull Tabs and Jar Games
9     Act.
10         (18) A person who intends to sell alcoholic liquors for
11     use or consumption on his or her licensed retail premises
12     who does not have liquor liability insurance coverage for
13     that premises in an amount that is at least equal to the
14     maximum liability amounts set out in subsection (a) of
15     Section 6-21.
16     (b) A criminal conviction of a corporation is not grounds
17 for the denial, suspension, or revocation of a license applied
18 for or held by the corporation if the criminal conviction was
19 not the result of a violation of any federal or State law
20 concerning the manufacture, possession or sale of alcoholic
21 liquor, the offense that led to the conviction did not result
22 in any financial gain to the corporation and the corporation
23 has terminated its relationship with each director, officer,
24 employee, or controlling shareholder whose actions directly
25 contributed to the conviction of the corporation. The
26 Commission shall determine if all provisions of this subsection
27 (b) have been met before any action on the corporation's
28 license is initiated.
29 (Source: P.A. 92-378, eff. 8-16-01; 93-266, eff. 1-1-04.)