HB0735 EnrolledLRB097 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; but
16the authority of the president or chairman of the county board
17or his or her designee shall extend only to that area in any
18county which lies outside the corporate limits of the cities,
19villages and incorporated towns therein and those areas which
20are owned by the county and are within the corporate limits of
21the cities, villages and incorporated towns with a population
22of less than 1,000,000, however, such county shall comply with
23the operating rules of the municipal ordinances affected when

 

 

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1issuing their own licenses.
2    However, such mayor, president of the board of trustees or
3president or chairman of the county board or his or her
4designee may appoint a person or persons to assist him in the
5exercise of the powers and the performance of the duties herein
6provided for such local liquor control commissioner.
7    Notwithstanding any other provision of this Section to the
8contrary, the mayor of a city with a population of 50,000 or
9less or the president of a village with a population of 50,000
10or less that has an interest in the manufacture, sale, or
11distribution of alcoholic liquor must direct the council or
12board over which he or she presides to appoint, by majority
13vote, a person other than him or her to serve as the local
14liquor control commissioner. The appointment must be made
15within 30 days from the day on which the mayor or president
16takes office, and the mayor or president cannot make
17nominations or serve any other role in the appointment. To
18prevent any conflict of interest, the mayor or president with
19the interest in the manufacture, sale, or distribution of
20alcoholic liquor shall not participate in any meetings,
21hearings, or decisions on matters impacting the manufacture,
22sale, or distribution of alcoholic liquor. Further, the
23appointee (i) shall be an attorney with an active license to
24practice law in the State of Illinois, (ii) shall not legally
25represent liquor license applicants or holders before the
26jurisdiction over which he or she presides as local liquor

 

 

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1control commissioner or before an adjacent jurisdiction, (iii)
2shall not have an interest in the manufacture, sale, or
3distribution of alcoholic liquor, and (iv) shall not be
4appointed to a term to exceed the term of the mayor, president,
5or members of the council or board.
6(Source: P.A. 94-747, eff. 5-8-06.)
 
7    (235 ILCS 5/6-2)  (from Ch. 43, par. 120)
8    Sec. 6-2. Issuance of licenses to certain persons
9prohibited.
10    (a) Except as otherwise provided in subsection (b) of this
11Section and in paragraph (1) of subsection (a) of Section 3-12,
12no license of any kind issued by the State Commission or any
13local commission shall be issued to:
14        (1) A person who is not a resident of any city, village
15    or county in which the premises covered by the license are
16    located; except in case of railroad or boat licenses.
17        (2) A person who is not of good character and
18    reputation in the community in which he resides.
19        (3) A person who is not a citizen of the United States.
20        (4) A person who has been convicted of a felony under
21    any Federal or State law, unless the Commission determines
22    that such person has been sufficiently rehabilitated to
23    warrant the public trust after considering matters set
24    forth in such person's application and the Commission's
25    investigation. The burden of proof of sufficient

 

 

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1    rehabilitation shall be on the applicant.
2        (5) A person who has been convicted of keeping a place
3    of prostitution or keeping a place of juvenile
4    prostitution, promoting prostitution that involves keeping
5    a place of prostitution, or promoting juvenile
6    prostitution that involves keeping a place of juvenile
7    prostitution.
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 or limited liability company, if any
23    member, officer, manager or director thereof, or any
24    stockholder or stockholders owning in the aggregate more
25    than 5% of the stock of such corporation, would not be
26    eligible to receive a license hereunder for any reason

 

 

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1    other than citizenship and residence within the political
2    subdivision.
3        (10a) A corporation or limited liability company
4    unless it is incorporated or organized in Illinois, or
5    unless it is a foreign corporation or foreign limited
6    liability company which is qualified under the Business
7    Corporation Act of 1983 or the Limited Liability Company
8    Act to transact business in Illinois. The Commission shall
9    permit and accept from an applicant for a license under
10    this Act proof prepared from the Secretary of State's
11    website that the corporation or limited liability company
12    is in good standing and is qualified under the Business
13    Corporation Act of 1983 or the Limited Liability Company
14    Act to transact business in Illinois.
15        (11) A person whose place of business is conducted by a
16    manager or agent unless the manager or agent possesses the
17    same qualifications required by the licensee.
18        (12) A person who has been convicted of a violation of
19    any Federal or State law concerning the manufacture,
20    possession or sale of alcoholic liquor, subsequent to the
21    passage of this Act or has forfeited his bond to appear in
22    court to answer charges for any such violation.
23        (13) A person who does not beneficially own the
24    premises for which a license is sought, or does not have a
25    lease thereon for the full period for which the license is
26    to be issued.

 

 

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1        (14) Any law enforcing public official, including
2    members of local liquor control commissions, any mayor,
3    alderman, or member of the city council or commission, any
4    president of the village board of trustees, any member of a
5    village board of trustees, or any president or member of a
6    county board; and no such official shall have a direct
7    interest in the manufacture, sale, or distribution of
8    alcoholic liquor, except that a license may be granted to
9    such official in relation to premises that are not located
10    within the territory subject to the jurisdiction of that
11    official if the issuance of such license is approved by the
12    State Liquor Control Commission and except that a license
13    may be granted, in a city or village with a population of
14    50,000 or less, to any alderman, member of a city council,
15    or member of a village board of trustees in relation to
16    premises that are located within the territory subject to
17    the jurisdiction of that official if (i) the sale of
18    alcoholic liquor pursuant to the license is incidental to
19    the selling of food, (ii) the issuance of the license is
20    approved by the State Commission, (iii) the issuance of the
21    license is in accordance with all applicable local
22    ordinances in effect where the premises are located, and
23    (iv) the official granted a license does not vote on
24    alcoholic liquor issues pending before the board or council
25    to which the license holder is elected. Notwithstanding any
26    provision of this paragraph (14) to the contrary, an

 

 

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1    alderman or member of a city council or commission, a
2    member of a village board of trustees other than the
3    president of the village board of trustees, or a member of
4    a county board other than the president of a county board
5    may have a direct interest in the manufacture, sale, or
6    distribution of alcoholic liquor as long as he or she is
7    not a law enforcing public official, a mayor, a village
8    board president, or president of a county board. To prevent
9    any conflict of interest, the elected official with the
10    direct interest in the manufacture, sale, or distribution
11    of alcoholic liquor shall not cannot participate in any
12    meetings, hearings, or decisions on matters impacting the
13    manufacture, sale, or distribution of alcoholic liquor.
14    Furthermore, the mayor of a city with a population of
15    50,000 or less or the president of a village with a
16    population of 50,000 or less may have an interest in the
17    manufacture, sale, or distribution of alcoholic liquor as
18    long as the council or board over which he or she presides
19    has made a local liquor control commissioner appointment
20    that complies with the requirements of Section 4-2 of this
21    Act.
22        (15) A person who is not a beneficial owner of the
23    business to be operated by the licensee.
24        (16) A person who has been convicted of a gambling
25    offense as proscribed by any of subsections (a) (3) through
26    (a) (11) of Section 28-1 of, or as proscribed by Section

 

 

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

 

 

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1license is initiated.
2(Source: P.A. 95-331, eff. 8-21-07; 96-1551, eff. 7-1-11.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.