HB0735 EngrossedLRB097 03567 ASK 43604 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 4-2 and 6-2 as follows:
 
6    (235 ILCS 5/4-2)  (from Ch. 43, par. 111)
7    Sec. 4-2. The mayor or president of the board of trustees
8of each city, village or incorporated town or his or her
9designee, and the president or chairman of the county board or
10his or her designee, shall be the local liquor control
11commissioner for their respective cities, villages,
12incorporated towns and counties, and shall be charged with the
13administration in their respective jurisdictions of the
14appropriate provisions of this Act and of such ordinances and
15resolutions relating to alcoholic liquor as may be enacted as
16long as that official or his or her designee does not have a
17direct interest in the manufacture, sale, or distribution of
18alcoholic liquor; but the authority of the president or
19chairman of the county board or his or her designee shall
20extend only to that area in any county which lies outside the
21corporate limits of the cities, villages and incorporated towns
22therein and those areas which are owned by the county and are
23within the corporate limits of the cities, villages and

 

 

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1incorporated towns with a population of less than 1,000,000,
2however, such county shall comply with the operating rules of
3the municipal ordinances affected when issuing their own
4licenses. If that official has a direct interest in the
5manufacture, sale, or distribution of alcoholic liquor, the
6council or board over which he or she presides must appoint, by
7majority vote of those elected or appointed, a liquor control
8commissioner other than that official, and that official shall
9not nominate or serve any other role in such appointment.
10    However, such mayor, president of the board of trustees or
11president or chairman of the county board or his or her
12designee may appoint a person or persons to assist him in the
13exercise of the powers and the performance of the duties herein
14provided for such local liquor control commissioner.
15(Source: P.A. 94-747, eff. 5-8-06.)
 
16    (235 ILCS 5/6-2)  (from Ch. 43, par. 120)
17    Sec. 6-2. Issuance of licenses to certain persons
18prohibited.
19    (a) Except as otherwise provided in subsection (b) of this
20Section and in paragraph (1) of subsection (a) of Section 3-12,
21no license of any kind issued by the State Commission or any
22local commission shall be issued to:
23        (1) A person who is not a resident of any city, village
24    or county in which the premises covered by the license are
25    located; except in case of railroad or boat licenses.

 

 

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1        (2) A person who is not of good character and
2    reputation in the community in which he resides.
3        (3) A person who is not a citizen of the United States.
4        (4) A person who has been convicted of a felony under
5    any Federal or State law, unless the Commission determines
6    that such person has been sufficiently rehabilitated to
7    warrant the public trust after considering matters set
8    forth in such person's application and the Commission's
9    investigation. The burden of proof of sufficient
10    rehabilitation shall be on the applicant.
11        (5) A person who has been convicted of keeping a place
12    of prostitution or keeping a place of juvenile
13    prostitution, promoting prostitution that involves keeping
14    a place of prostitution, or promoting juvenile
15    prostitution that involves keeping a place of juvenile
16    prostitution.
17        (6) A person who has been convicted of pandering or
18    other crime or misdemeanor opposed to decency and morality.
19        (7) A person whose license issued under this Act has
20    been revoked for cause.
21        (8) A person who at the time of application for renewal
22    of any license issued hereunder would not be eligible for
23    such license upon a first application.
24        (9) A copartnership, if any general partnership
25    thereof, or any limited partnership thereof, owning more
26    than 5% of the aggregate limited partner interest in such

 

 

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1    copartnership would not be eligible to receive a license
2    hereunder for any reason other than residence within the
3    political subdivision, unless residency is required by
4    local ordinance.
5        (10) A corporation or limited liability company, if any
6    member, officer, manager or director thereof, or any
7    stockholder or stockholders owning in the aggregate more
8    than 5% of the stock of such corporation, would not be
9    eligible to receive a license hereunder for any reason
10    other than citizenship and residence within the political
11    subdivision.
12        (10a) A corporation or limited liability company
13    unless it is incorporated or organized in Illinois, or
14    unless it is a foreign corporation or foreign limited
15    liability company which is qualified under the Business
16    Corporation Act of 1983 or the Limited Liability Company
17    Act to transact business in Illinois. The Commission shall
18    permit and accept from an applicant for a license under
19    this Act proof prepared from the Secretary of State's
20    website that the corporation or limited liability company
21    is in good standing and is qualified under the Business
22    Corporation Act of 1983 or the Limited Liability Company
23    Act to transact business in Illinois.
24        (11) A person whose place of business is conducted by a
25    manager or agent unless the manager or agent possesses the
26    same qualifications required by the licensee.

 

 

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1        (12) A person who has been convicted of a violation of
2    any Federal or State law concerning the manufacture,
3    possession or sale of alcoholic liquor, subsequent to the
4    passage of this Act or has forfeited his bond to appear in
5    court to answer charges for any such violation.
6        (13) A person who does not beneficially own the
7    premises for which a license is sought, or does not have a
8    lease thereon for the full period for which the license is
9    to be issued.
10        (14) Any law enforcing public official, including
11    members of local liquor control commissions, any mayor,
12    alderman, or member of the city council or commission, any
13    president of the village board of trustees, any member of a
14    village board of trustees, or any president or member of a
15    county board; and no such official shall have a direct
16    interest in the manufacture, sale, or distribution of
17    alcoholic liquor, except that a license may be granted to
18    such official in relation to premises that are not located
19    within the territory subject to the jurisdiction of that
20    official if the issuance of such license is approved by the
21    State Liquor Control Commission and except that a license
22    may be granted, in a city or village with a population of
23    50,000 or less, to any mayor, alderman, member of a city
24    council, or president or member of a village board of
25    trustees in relation to premises that are located within
26    the territory subject to the jurisdiction of that official

 

 

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1    if (i) the sale of alcoholic liquor pursuant to the license
2    is incidental to the selling of food, (ii) the issuance of
3    the license is approved by the State Commission, (iii) the
4    issuance of the license is in accordance with all
5    applicable local ordinances in effect where the premises
6    are located, and (iv) the official granted a license does
7    not vote on alcoholic liquor issues pending before the
8    board or council to which the license holder is elected or
9    appointed. Notwithstanding any provision of this paragraph
10    (14) to the contrary, (i) an alderman or member of a city
11    council or commission, a member of a village board of
12    trustees other than the president of the village board of
13    trustees, or a member of a county board other than the
14    president of a county board may have a direct interest in
15    the manufacture, sale, or distribution of alcoholic liquor
16    as long as he or she is not a law enforcing public
17    official, a mayor, a village board president, or president
18    of a county board and, furthermore, (ii) the mayor of a
19    city, president of a village board of trustees, or chairman
20    or president of a county board may have a direct interest
21    in the manufacture, sale, or distribution of alcoholic
22    liquor as long as the council or board has appointed a
23    liquor control commissioner pursuant to Section 4-2 of this
24    Act. To prevent any conflict of interest, the elected
25    official with the direct interest in the manufacture, sale,
26    or distribution of alcoholic liquor cannot participate in

 

 

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1    any meetings, hearings, or decisions on matters impacting
2    the manufacture, sale, or distribution of alcoholic
3    liquor.
4        (15) A person who is not a beneficial owner of the
5    business to be operated by the licensee.
6        (16) A person who has been convicted of a gambling
7    offense as proscribed by any of subsections (a) (3) through
8    (a) (11) of Section 28-1 of, or as proscribed by Section
9    28-1.1 or 28-3 of, the Criminal Code of 1961, or as
10    proscribed by a statute replaced by any of the aforesaid
11    statutory provisions.
12        (17) A person or entity to whom a federal wagering
13    stamp has been issued by the federal government, unless the
14    person or entity is eligible to be issued a license under
15    the Raffles Act or the Illinois Pull Tabs and Jar Games
16    Act.
17        (18) A person who intends to sell alcoholic liquors for
18    use or consumption on his or her licensed retail premises
19    who does not have liquor liability insurance coverage for
20    that premises in an amount that is at least equal to the
21    maximum liability amounts set out in subsection (a) of
22    Section 6-21.
23    (b) A criminal conviction of a corporation is not grounds
24for the denial, suspension, or revocation of a license applied
25for or held by the corporation if the criminal conviction was
26not the result of a violation of any federal or State law

 

 

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1concerning the manufacture, possession or sale of alcoholic
2liquor, the offense that led to the conviction did not result
3in any financial gain to the corporation and the corporation
4has terminated its relationship with each director, officer,
5employee, or controlling shareholder whose actions directly
6contributed to the conviction of the corporation. The
7Commission shall determine if all provisions of this subsection
8(b) have been met before any action on the corporation's
9license is initiated.
10(Source: P.A. 95-331, eff. 8-21-07; 96-1551, eff. 7-1-11.)