093_SB0218

 
                                     LRB093 06404 LRD 06526 b

 1        AN ACT in relation to alcoholic liquor.

 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 except as otherwise provided  in  paragraph
21        (1.1),  to suspend or revoke such licenses upon the State
22        commission's determination, upon  notice  after  hearing,
23        that a licensee has violated any provision of this Act or
24        any  rule  or  regulation  issued pursuant thereto and in
25        effect for 30 days prior to such 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.   The  fine  imposed  under
 
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 1        this  paragraph  may  not exceed $500 for each violation.
 2        Each day that  the  activity,  which  gave  rise  to  the
 3        original  fine,  continues  is a separate violation.  The
 4        maximum fine that may be levied against any licensee, for
 5        the period of the license, shall not exceed $20,000.  The
 6        maximum  penalty  that  may  be imposed on a licensee for
 7        selling a bottle  of  alcoholic  liquor  with  a  foreign
 8        object in it or serving from a bottle of alcoholic liquor
 9        with  a  foreign object in it shall be the destruction of
10        that bottle of alcoholic liquor for the first 10  bottles
11        so sold or served from by the licensee.  For the eleventh
12        bottle  of  alcoholic  liquor  and  for each third bottle
13        thereafter sold or served from by  the  licensee  with  a
14        foreign  object  in  it,  the maximum penalty that may be
15        imposed on the licensee is the destruction of the  bottle
16        of alcoholic liquor and a fine of up to $50.
17             (1.1)  If  a  licensee  is  cited for a violation of
18        this Act, other than a violation  of  Section  6-1,  6-3,
19        6-5, 6-9, 6-15, 6-16, 6-20, or any other Section that the
20        State  Commission  determines potentially jeopardizes the
21        health, safety, or  welfare  of  any  person,  the  State
22        Commission  shall  warn  the  licensee  that  it  has  30
23        calendar  days to correct the violation.  If the licensee
24        fails to correct the violation within 30  calendar  days,
25        the  State Commission shall pursue the violation pursuant
26        to paragraph (1).
27             (2)  To adopt such rules and regulations  consistent
28        with  the provisions of this Act which shall be necessary
29        to carry on its functions and duties to the end that  the
30        health,  safety and welfare of the People of the State of
31        Illinois  shall  be  protected  and  temperance  in   the
32        consumption  of  alcoholic  liquors shall be fostered and
33        promoted and to  distribute  copies  of  such  rules  and
34        regulations to all licensees affected thereby.
 
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 1             (3)  To  call  upon other administrative departments
 2        of the State, county and  municipal  governments,  county
 3        and city police departments and upon prosecuting officers
 4        for such information and assistance as it deems necessary
 5        in the performance of its duties.
 6             (4)  To  recommend  to local commissioners rules and
 7        regulations, not  inconsistent  with  the  law,  for  the
 8        distribution and sale of alcoholic liquors throughout the
 9        State.
10             (5)  To  inspect,  or  cause  to  be  inspected, any
11        premises  in  this  State  where  alcoholic  liquors  are
12        manufactured, distributed, warehoused, or sold.
13             (5.1)  Upon receipt of a complaint  or  upon  having
14        knowledge  that  any  person  is engaged in business as a
15        manufacturer,  importing  distributor,  distributor,   or
16        retailer  without  a  license or valid license, to notify
17        the local liquor authority, file  a  complaint  with  the
18        State's   Attorney's  Office  of  the  county  where  the
19        incident occurred, or initiate an investigation with  the
20        appropriate law enforcement officials.
21             (5.2)  To issue a cease and desist notice to persons
22        shipping  alcoholic  liquor  into this State from a point
23        outside of this State if the shipment is in violation  of
24        this Act.
25             (5.3)  To  receive  complaints from licensees, local
26        officials, law enforcement agencies,  organizations,  and
27        persons   stating  that  any  licensee  has  been  or  is
28        violating any provision of this  Act  or  the  rules  and
29        regulations issued pursuant to this Act.  Such complaints
30        shall  be  in  writing, signed and sworn to by the person
31        making the complaint, and shall  state  with  specificity
32        the  facts  in relation to the alleged violation.  If the
33        Commission has reasonable grounds  to  believe  that  the
34        complaint  substantially  alleges a violation of this Act
 
                            -4-      LRB093 06404 LRD 06526 b
 1        or rules and regulations adopted pursuant to this Act, it
 2        shall conduct an investigation.  If, after conducting  an
 3        investigation,  the  Commission  is  satisfied  that  the
 4        alleged  violation  did  occur,  it  shall  proceed  with
 5        disciplinary  action  against the licensee as provided in
 6        this Act.
 7             (6)  To hear and determine appeals from orders of  a
 8        local  commission  in  accordance  with the provisions of
 9        this Act, as hereinafter set forth. Hearings  under  this
10        subsection  shall  be  held in Springfield or Chicago, at
11        whichever  location  is  the  more  convenient  for   the
12        majority of persons who are parties to the hearing.
13             (7)  The  commission shall establish uniform systems
14        of accounts to be kept by  all  retail  licensees  having
15        more   than   4  employees,  and  for  this  purpose  the
16        commission may classify all retail licensees having  more
17        than  4  employees  and  establish  a  uniform  system of
18        accounts for each class and prescribe the manner in which
19        such accounts shall be  kept.  The  commission  may  also
20        prescribe  the forms of accounts to be kept by all retail
21        licensees having more than 4 employees, including but not
22        limited to accounts of  earnings  and  expenses  and  any
23        distribution,  payment, or other distribution of earnings
24        or assets, and any other  forms,  records  and  memoranda
25        which  in the judgment of the commission may be necessary
26        or appropriate to carry out any of the provisions of this
27        Act, including but not limited to such forms, records and
28        memoranda as will readily and accurately disclose at  all
29        times  the  beneficial  ownership of such retail licensed
30        business.  The accounts,  forms,  records  and  memoranda
31        shall be available at all reasonable times for inspection
32        by  authorized representatives of the State commission or
33        by any local liquor control commissioner or  his  or  her
34        authorized representative. The commission, may, from time
 
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 1        to time, alter, amend or repeal, in whole or in part, any
 2        uniform  system  of  accounts,  or the form and manner of
 3        keeping accounts.
 4             (8)  In the conduct of any hearing authorized to  be
 5        held  by  the commission, to appoint, at the commission's
 6        discretion,  hearing   officers   to   conduct   hearings
 7        involving  complex  issues  or issues that will require a
 8        protracted period of time  to  resolve,  to  examine,  or
 9        cause  to  be  examined, under oath, any licensee, and to
10        examine or cause to be examined the books and records  of
11        such  licensee; to hear testimony and take proof material
12        for its  information  in  the  discharge  of  its  duties
13        hereunder;  to  administer  or  cause  to be administered
14        oaths;  for  any  such  purpose  to  issue  subpoena   or
15        subpoenas  to require the attendance of witnesses and the
16        production of books, which shall be effective in any part
17        of this State, and to adopt rules to implement its powers
18        under this paragraph (8).
19             Any Circuit Court may by order duly entered, require
20        the  attendance  of  witnesses  and  the  production   of
21        relevant books subpoenaed by the State commission and the
22        court  may  compel  obedience to its order by proceedings
23        for contempt.
24             (9)  To investigate the administration  of  laws  in
25        relation  to  alcoholic  liquors in this and other states
26        and any foreign countries, and to recommend from time  to
27        time  to  the  Governor  and  through  him  or her to the
28        legislature of this State, such amendments to  this  Act,
29        if  any,  as  it may think desirable and as will serve to
30        further the general broad purposes contained  in  Section
31        1-2 hereof.
32             (10)  To adopt such rules and regulations consistent
33        with  the provisions of this Act which shall be necessary
34        for the control, sale or disposition of alcoholic  liquor
 
                            -6-      LRB093 06404 LRD 06526 b
 1        damaged as a result of an accident, wreck, flood, fire or
 2        other similar occurrence.
 3             (11)  To   develop   industry  educational  programs
 4        related to responsible serving and selling,  particularly
 5        in   the  areas  of  overserving  consumers  and  illegal
 6        underage  purchasing   and   consumption   of   alcoholic
 7        beverages.
 8             (11.1)  To  license  persons providing education and
 9        training to alcohol beverage sellers  and  servers  under
10        the  Beverage  Alcohol  Sellers and Servers Education and
11        Training (BASSET) programs and to develop and  administer
12        a  public  awareness  program  in  Illinois  to reduce or
13        eliminate  the  illegal  purchase  and   consumption   of
14        alcoholic  beverage  products by persons under the age of
15        21. Application for a license  shall  be  made  on  forms
16        provided by the State Commission.
17             (12)  To   develop  and  maintain  a  repository  of
18        license and regulatory information.
19             (13)  On or before January 15, 1994, the  Commission
20        shall  issue a written report to the Governor and General
21        Assembly that is to be based on a comprehensive study  of
22        the  impact on and implications for the State of Illinois
23        of Section 1926 of the Federal ADAMHA Reorganization  Act
24        of  1992  (Public Law 102-321).  This study shall address
25        the extent to which Illinois currently complies with  the
26        provisions  of  P.L.  102-321  and  the rules promulgated
27        pursuant thereto.
28             As part of its report, the Commission shall  provide
29        the following essential information:
30                  (i)  the   number  of  retail  distributors  of
31             tobacco products, by type and  geographic  area,  in
32             the State;
33                  (ii)  the  number  of  reported  citations  and
34             successful  convictions,  categorized  by  type  and
 
                            -7-      LRB093 06404 LRD 06526 b
 1             location of retail distributor, for violation of the
 2             Sale  of  Tobacco  to  Minors  Act and the Smokeless
 3             Tobacco Limitation Act;
 4                  (iii)  the  extent  and  nature  of   organized
 5             educational  and  governmental  activities  that are
 6             intended to promote, encourage or  otherwise  secure
 7             compliance  with any Illinois laws that prohibit the
 8             sale or distribution of tobacco products to  minors;
 9             and
10                  (iv)  the  level  of access and availability of
11             tobacco products to individuals under the age of 18.
12        To  obtain  the  data  necessary  to  comply   with   the
13    provisions  of  P.L.  102-321  and  the  requirements of this
14    report, the  Commission  shall  conduct  random,  unannounced
15    inspections    of   a   geographically   and   scientifically
16    representative  sample  of   the   State's   retail   tobacco
17    distributors.
18        The  Commission  shall  consult  with  the  Department of
19    Public Health, the Department of Human Services, the Illinois
20    State Police and  any  other  executive  branch  agency,  and
21    private  organizations  that may have information relevant to
22    this report.
23        The Commission  may  contract  with  the  Food  and  Drug
24    Administration  of  the  U.S.  Department of Health and Human
25    Services to conduct unannounced  investigations  of  Illinois
26    tobacco  vendors  to  determine  compliance with federal laws
27    relating to the illegal  sale  of  cigarettes  and  smokeless
28    tobacco products to persons under the age of 18.
29        (b)  On  or  before  April 30, 1999, the Commission shall
30    present a written report to  the  Governor  and  the  General
31    Assembly that shall be based on a study of the impact of this
32    amendatory  Act  of  1998  on  the  business  of  soliciting,
33    selling,  and  shipping alcoholic liquor from outside of this
34    State directly to residents of this State.
 
                            -8-      LRB093 06404 LRD 06526 b
 1        As part of its report, the Commission shall  provide  the
 2    following information:
 3             (i)  the  amount  of  State  excise  and  sales  tax
 4        revenues  generated as a result of this amendatory Act of
 5        1998;
 6             (ii)  the amount of licensing  fees  received  as  a
 7        result of this amendatory Act of 1998;
 8             (iii)  the number of reported violations, the number
 9        of cease and desist notices issued by the Commission, the
10        number  of notices of violations issued to the Department
11        of Revenue, and the number of notices and  complaints  of
12        violations to law enforcement officials.
13    (Source:  P.A.  91-553,  eff.  8-14-99;  91-922, eff. 7-7-00;
14    92-378, eff. 8-16-01; 92-813, eff. 8-21-02.)