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
 
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 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
 
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 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.
 
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 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
 
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 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
 
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 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.
 
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 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)
 
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 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.)