093_SB0411sam002

 










                                     LRB093 09914 LRD 13640 a

 1                    AMENDMENT TO SENATE BILL 411

 2        AMENDMENT NO.     .  Amend Senate Bill 411,  AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The Liquor Control Act of 1934 is amended by
 6    changing Section 3-12 as follows:

 7        (235 ILCS 5/3-12) (from Ch. 43, par. 108)
 8        Sec. 3-12.  Powers and duties of State Commission.
 9        (a)  The  State  commission  shall  have  the   following
10    powers, functions and duties:
11             (1)  To  receive  applications and to issue licenses
12        to   manufacturers,    foreign    importers,    importing
13        distributors,   distributors,  non-resident  dealers,  on
14        premise   consumption   retailers,   off   premise   sale
15        retailers, special event retailer licensees, special  use
16        permit  licenses,  auction  liquor  licenses,  brew pubs,
17        caterer   retailers,   non-beverage   users,   railroads,
18        including owners and lessees of sleeping, dining and cafe
19        cars,  airplanes,  boats,  brokers,  and   wine   maker's
20        premises  licensees  in accordance with the provisions of
21        this Act, and to suspend or revoke such licenses upon the
22        State  commission's  determination,  upon  notice   after
 
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 1        hearing,  that  a  licensee has violated any provision of
 2        this Act  or  any  rule  or  regulation  issued  pursuant
 3        thereto   and  in  effect  for  30  days  prior  to  such
 4        violation.
 5             In lieu of suspending or  revoking  a  license,  the
 6        commission may impose a fine, upon the State commission's
 7        determination  and  notice after hearing, that a licensee
 8        has violated any provision of this Act  or  any  rule  or
 9        regulation  issued  pursuant thereto and in effect for 30
10        days prior to such violation.  In  instances  other  than
11        actions  taken  pursuant  to  a violation of Section 6-3,
12        6-5, or 6-9, the State Commission may suspend or revoke a
13        licensee's license or impose a fine upon a licensee  only
14        if  the appropriate local liquor control commissioner did
15        not revoke or suspend the licensee's license or impose  a
16        fine  upon  the  licensee.   The  fine imposed under this
17        paragraph may not exceed $500 for each  violation.   Each
18        day  that  the  activity, which gave rise to the original
19        fine, continues is a  separate  violation.   The  maximum
20        fine  that  may  be  levied against any licensee, for the
21        period of the license,  shall  not  exceed  $20,000.  The
22        maximum  penalty  that  may  be imposed on a licensee for
23        selling a bottle  of  alcoholic  liquor  with  a  foreign
24        object in it or serving from a bottle of alcoholic liquor
25        with  a  foreign object in it shall be the destruction of
26        that bottle of alcoholic liquor for the first 10  bottles
27        so sold or served from by the licensee.  For the eleventh
28        bottle  of  alcoholic  liquor  and  for each third bottle
29        thereafter sold or served from by  the  licensee  with  a
30        foreign  object  in  it,  the maximum penalty that may be
31        imposed on the licensee is the destruction of the  bottle
32        of alcoholic liquor and a fine of up to $50.
33             (2)  To  adopt such rules and regulations consistent
34        with the provisions of this Act which shall be  necessary
 
                            -3-      LRB093 09914 LRD 13640 a
 1        to  carry on its functions and duties to the end that the
 2        health, safety and welfare of the People of the State  of
 3        Illinois   shall  be  protected  and  temperance  in  the
 4        consumption of alcoholic liquors shall  be  fostered  and
 5        promoted  and  to  distribute  copies  of  such rules and
 6        regulations to all licensees affected thereby.
 7             (3)  To call upon other  administrative  departments
 8        of  the  State,  county and municipal governments, county
 9        and city police departments and upon prosecuting officers
10        for such information and assistance as it deems necessary
11        in the performance of its duties.
12             (4)  To recommend to local commissioners  rules  and
13        regulations,  not  inconsistent  with  the  law,  for the
14        distribution and sale of alcoholic liquors throughout the
15        State.
16             (5)  To inspect,  or  cause  to  be  inspected,  any
17        premises  in  this  State  where  alcoholic  liquors  are
18        manufactured, distributed, warehoused, or sold.
19             (5.1)  Upon  receipt  of  a complaint or upon having
20        knowledge that any person is engaged  in  business  as  a
21        manufacturer,   importing  distributor,  distributor,  or
22        retailer without a license or valid  license,  to  notify
23        the  local  liquor  authority,  file a complaint with the
24        State's  Attorney's  Office  of  the  county  where   the
25        incident  occurred, or initiate an investigation with the
26        appropriate law enforcement officials.
27             (5.2)  To issue a cease and desist notice to persons
28        shipping alcoholic liquor into this State  from  a  point
29        outside  of this State if the shipment is in violation of
30        this Act.
31             (5.3)  To receive complaints from  licensees,  local
32        officials,  law  enforcement agencies, organizations, and
33        persons  stating  that  any  licensee  has  been  or   is
34        violating  any  provision  of  this  Act or the rules and
 
                            -4-      LRB093 09914 LRD 13640 a
 1        regulations issued pursuant to this Act.  Such complaints
 2        shall be in writing, signed and sworn to  by  the  person
 3        making  the  complaint,  and shall state with specificity
 4        the facts in relation to the alleged violation.   If  the
 5        Commission  has  reasonable  grounds  to believe that the
 6        complaint substantially alleges a violation of  this  Act
 7        or rules and regulations adopted pursuant to this Act, it
 8        shall  conduct an investigation.  If, after conducting an
 9        investigation,  the  Commission  is  satisfied  that  the
10        alleged  violation  did  occur,  it  shall  proceed  with
11        disciplinary action against the licensee as  provided  in
12        this Act.
13             (6)  To  hear and determine appeals from orders of a
14        local commission in accordance  with  the  provisions  of
15        this  Act,  as hereinafter set forth. Hearings under this
16        subsection shall be held in Springfield  or  Chicago,  at
17        whichever   location  is  the  more  convenient  for  the
18        majority of persons who are parties to the hearing.
19             (7)  The commission shall establish uniform  systems
20        of  accounts  to  be  kept by all retail licensees having
21        more  than  4  employees,  and  for  this   purpose   the
22        commission  may classify all retail licensees having more
23        than 4  employees  and  establish  a  uniform  system  of
24        accounts for each class and prescribe the manner in which
25        such  accounts  shall  be  kept.  The commission may also
26        prescribe the forms of accounts to be kept by all  retail
27        licensees having more than 4 employees, including but not
28        limited  to  accounts  of  earnings  and expenses and any
29        distribution, payment, or other distribution of  earnings
30        or  assets,  and  any  other forms, records and memoranda
31        which in the judgment of the commission may be  necessary
32        or appropriate to carry out any of the provisions of this
33        Act, including but not limited to such forms, records and
34        memoranda  as will readily and accurately disclose at all
 
                            -5-      LRB093 09914 LRD 13640 a
 1        times the beneficial ownership of  such  retail  licensed
 2        business.   The  accounts,  forms,  records and memoranda
 3        shall be available at all reasonable times for inspection
 4        by authorized representatives of the State commission  or
 5        by  any  local  liquor control commissioner or his or her
 6        authorized representative. The commission, may, from time
 7        to time, alter, amend or repeal, in whole or in part, any
 8        uniform system of accounts, or the  form  and  manner  of
 9        keeping accounts.
10             (8)  In  the conduct of any hearing authorized to be
11        held by the commission, to appoint, at  the  commission's
12        discretion,   hearing   officers   to   conduct  hearings
13        involving complex issues or issues that  will  require  a
14        protracted  period  of  time  to  resolve, to examine, or
15        cause to be examined, under oath, any  licensee,  and  to
16        examine  or cause to be examined the books and records of
17        such licensee; to hear testimony and take proof  material
18        for  its  information  in  the  discharge  of  its duties
19        hereunder; to administer  or  cause  to  be  administered
20        oaths;   for  any  such  purpose  to  issue  subpoena  or
21        subpoenas to require the attendance of witnesses and  the
22        production of books, which shall be effective in any part
23        of this State, and to adopt rules to implement its powers
24        under this paragraph (8).
25             Any Circuit Court may by order duly entered, require
26        the   attendance  of  witnesses  and  the  production  of
27        relevant books subpoenaed by the State commission and the
28        court may compel obedience to its  order  by  proceedings
29        for contempt.
30             (9)  To  investigate  the  administration of laws in
31        relation to alcoholic liquors in this  and  other  states
32        and  any foreign countries, and to recommend from time to
33        time to the Governor  and  through  him  or  her  to  the
34        legislature  of  this State, such amendments to this Act,
 
                            -6-      LRB093 09914 LRD 13640 a
 1        if any, as it may think desirable and as  will  serve  to
 2        further  the  general broad purposes contained in Section
 3        1-2 hereof.
 4             (10)  To adopt such rules and regulations consistent
 5        with the provisions of this Act which shall be  necessary
 6        for  the control, sale or disposition of alcoholic liquor
 7        damaged as a result of an accident, wreck, flood, fire or
 8        other similar occurrence.
 9             (11)  To  develop  industry   educational   programs
10        related  to responsible serving and selling, particularly
11        in  the  areas  of  overserving  consumers  and   illegal
12        underage   purchasing   and   consumption   of  alcoholic
13        beverages.
14             (11.1)  To license persons providing  education  and
15        training  to  alcohol  beverage sellers and servers under
16        the Beverage Alcohol Sellers and  Servers  Education  and
17        Training  (BASSET) programs and to develop and administer
18        a public awareness  program  in  Illinois  to  reduce  or
19        eliminate   the   illegal  purchase  and  consumption  of
20        alcoholic beverage products by persons under the  age  of
21        21.  Application  for  a  license  shall be made on forms
22        provided by the State Commission.
23             (12)  To  develop  and  maintain  a  repository   of
24        license and regulatory information.
25             (13)  On  or before January 15, 1994, the Commission
26        shall issue a written report to the Governor and  General
27        Assembly  that is to be based on a comprehensive study of
28        the impact on and implications for the State of  Illinois
29        of  Section 1926 of the Federal ADAMHA Reorganization Act
30        of 1992 (Public Law 102-321).  This study  shall  address
31        the  extent to which Illinois currently complies with the
32        provisions of P.L.  102-321  and  the  rules  promulgated
33        pursuant thereto.
34             As  part of its report, the Commission shall provide
 
                            -7-      LRB093 09914 LRD 13640 a
 1        the following essential information:
 2                  (i)  the  number  of  retail  distributors   of
 3             tobacco  products,  by  type and geographic area, in
 4             the State;
 5                  (ii)  the  number  of  reported  citations  and
 6             successful  convictions,  categorized  by  type  and
 7             location of retail distributor, for violation of the
 8             Sale of Tobacco to  Minors  Act  and  the  Smokeless
 9             Tobacco Limitation Act;
10                  (iii)  the   extent  and  nature  of  organized
11             educational and  governmental  activities  that  are
12             intended  to  promote, encourage or otherwise secure
13             compliance with any Illinois laws that prohibit  the
14             sale  or distribution of tobacco products to minors;
15             and
16                  (iv)  the level of access and  availability  of
17             tobacco products to individuals under the age of 18.
18        To   obtain   the  data  necessary  to  comply  with  the
19    provisions of P.L.  102-321  and  the  requirements  of  this
20    report,  the  Commission  shall  conduct  random, unannounced
21    inspections   of   a   geographically   and    scientifically
22    representative   sample   of   the   State's  retail  tobacco
23    distributors.
24        The Commission  shall  consult  with  the  Department  of
25    Public Health, the Department of Human Services, the Illinois
26    State  Police  and  any  other  executive  branch agency, and
27    private organizations that may have information  relevant  to
28    this report.
29        The  Commission  may  contract  with  the  Food  and Drug
30    Administration of the U.S. Department  of  Health  and  Human
31    Services  to  conduct  unannounced investigations of Illinois
32    tobacco vendors to determine  compliance  with  federal  laws
33    relating  to  the  illegal  sale  of cigarettes and smokeless
34    tobacco products to persons under the age of 18.
 
                            -8-      LRB093 09914 LRD 13640 a
 1        (b)  On or before April 30, 1999,  the  Commission  shall
 2    present  a  written  report  to  the Governor and the General
 3    Assembly that shall be based on a study of the impact of this
 4    amendatory  Act  of  1998  on  the  business  of  soliciting,
 5    selling, and shipping alcoholic liquor from outside  of  this
 6    State directly to residents of this State.
 7        As  part  of its report, the Commission shall provide the
 8    following information:
 9             (i)  the  amount  of  State  excise  and  sales  tax
10        revenues generated as a result of this amendatory Act  of
11        1998;
12             (ii)  the  amount  of  licensing  fees received as a
13        result of this amendatory Act of 1998;
14             (iii)  the number of reported violations, the number
15        of cease and desist notices issued by the Commission, the
16        number of notices of violations issued to the  Department
17        of  Revenue,  and the number of notices and complaints of
18        violations to law enforcement officials.
19    (Source: P.A. 91-553,  eff.  8-14-99;  91-922,  eff.  7-7-00;
20    92-378, eff. 8-16-01; 92-813, eff. 8-21-02.)".