093_SB0411eng

 
SB411 Engrossed                      LRB093 09914 LRD 10164 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 Section 3-12 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.
26             In lieu of suspending or  revoking  a  license,  the
27        commission may impose a fine, upon the State commission's
28        determination  and  notice after hearing, that a licensee
29        has violated any provision of this Act  or  any  rule  or
30        regulation  issued  pursuant thereto and in effect for 30
31        days prior to such violation.  In  instances  other  than
 
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 1        actions  taken  pursuant  to  a violation of Section 6-3,
 2        6-5, or 6-9, the State Commission may suspend or revoke a
 3        licensee's license or impose a fine upon a licensee  only
 4        if  the appropriate local liquor control commissioner did
 5        not revoke or suspend the licensee's license or impose  a
 6        fine  upon the licensee. For a violation of Section 6-16,
 7        the State Commission may impose a fine not to exceed $250
 8        if the appropriate local liquor control commissioner  did
 9        not   take  any  action.  If  the  local  liquor  control
10        commissioner issued a fine of less than $250,  the  State
11        Commission  may  impose  an  additional  fine to make the
12        total fine from  the  appropriate  local  liquor  control
13        commissioner  and  the State Commission equal up to $250.
14        For multiple violations of Section 6-16 within a 24-month
15        period, the maximum fine shall be increased $250 for each
16        violation. The fine imposed under this paragraph may  not
17        exceed  $500  for  each  violation.   Each  day  that the
18        activity, which gave rise to the original fine, continues
19        is a separate violation.  The maximum fine  that  may  be
20        levied  against  any  licensee,  for  the  period  of the
21        license, shall not exceed $20,000.  The  maximum  penalty
22        that may be imposed on a licensee for selling a bottle of
23        alcoholic  liquor  with a foreign object in it or serving
24        from a bottle of alcoholic liquor with a  foreign  object
25        in  it  shall  be  the  destruction  of  that  bottle  of
26        alcoholic  liquor  for  the  first  10 bottles so sold or
27        served from by the licensee.  For the eleventh bottle  of
28        alcoholic  liquor  and  for  each third bottle thereafter
29        sold or served from by the licensee with a foreign object
30        in it, the maximum penalty that may  be  imposed  on  the
31        licensee  is  the  destruction of the bottle of alcoholic
32        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
 
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 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
 
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 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
 
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 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,
 
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 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
 
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 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.
 
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 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.)