093_SB0410sam002

 










                                     LRB093 09913 LRD 13639 a

 1                    AMENDMENT TO SENATE BILL 410

 2        AMENDMENT NO.     .  Amend Senate Bill 410,  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 Sections 3-12 and 6-2 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.   Except  in  the  case  of  an  action  taken
 5        pursuant to a violation of Section 6-3, 6-5, or 6-9,  any
 6        action  by  the  State  Commission to suspend or revoke a
 7        licensee's license shall be limited to  the  license  for
 8        the specific premises where the violation occurred.
 9             In  lieu  of  suspending  or revoking a license, the
10        commission may impose a fine, upon the State commission's
11        determination and notice after hearing, that  a  licensee
12        has  violated  any  provision  of this Act or any rule or
13        regulation issued pursuant thereto and in effect  for  30
14        days  prior  to  such  violation.  The fine imposed under
15        this paragraph may not exceed $500  for  each  violation.
16        Each  day  that  the  activity,  which  gave  rise to the
17        original fine, continues is a  separate  violation.   The
18        maximum fine that may be levied against any licensee, for
19        the  period of the license, shall not exceed $20,000. The
20        maximum penalty that may be imposed  on  a  licensee  for
21        selling  a  bottle  of  alcoholic  liquor  with a foreign
22        object in it or serving from a bottle of alcoholic liquor
23        with a foreign object in it shall be the  destruction  of
24        that  bottle of alcoholic liquor for the first 10 bottles
25        so sold or served from by the licensee.  For the eleventh
26        bottle of alcoholic liquor  and  for  each  third  bottle
27        thereafter  sold  or  served  from by the licensee with a
28        foreign object in it, the maximum  penalty  that  may  be
29        imposed  on the licensee is the destruction of the bottle
30        of alcoholic liquor and a fine of up to $50.
31             (2)  To adopt such rules and regulations  consistent
32        with  the provisions of this Act which shall be necessary
33        to carry on its functions and duties to the end that  the
34        health,  safety and welfare of the People of the State of
 
                            -3-      LRB093 09913 LRD 13639 a
 1        Illinois  shall  be  protected  and  temperance  in   the
 2        consumption  of  alcoholic  liquors shall be fostered and
 3        promoted and to  distribute  copies  of  such  rules  and
 4        regulations to all licensees affected thereby.
 5             (3)  To  call  upon other administrative departments
 6        of the State, county and  municipal  governments,  county
 7        and city police departments and upon prosecuting officers
 8        for such information and assistance as it deems necessary
 9        in the performance of its duties.
10             (4)  To  recommend  to local commissioners rules and
11        regulations, not  inconsistent  with  the  law,  for  the
12        distribution and sale of alcoholic liquors throughout the
13        State.
14             (5)  To  inspect,  or  cause  to  be  inspected, any
15        premises  in  this  State  where  alcoholic  liquors  are
16        manufactured, distributed, warehoused, or sold.
17             (5.1)  Upon receipt of a complaint  or  upon  having
18        knowledge  that  any  person  is engaged in business as a
19        manufacturer,  importing  distributor,  distributor,   or
20        retailer  without  a  license or valid license, to notify
21        the local liquor authority, file  a  complaint  with  the
22        State's   Attorney's  Office  of  the  county  where  the
23        incident occurred, or initiate an investigation with  the
24        appropriate law enforcement officials.
25             (5.2)  To issue a cease and desist notice to persons
26        shipping  alcoholic  liquor  into this State from a point
27        outside of this State if the shipment is in violation  of
28        this Act.
29             (5.3)  To  receive  complaints from licensees, local
30        officials, law enforcement agencies,  organizations,  and
31        persons   stating  that  any  licensee  has  been  or  is
32        violating any provision of this  Act  or  the  rules  and
33        regulations issued pursuant to this Act.  Such complaints
34        shall  be  in  writing, signed and sworn to by the person
 
                            -4-      LRB093 09913 LRD 13639 a
 1        making the complaint, and shall  state  with  specificity
 2        the  facts  in relation to the alleged violation.  If the
 3        Commission has reasonable grounds  to  believe  that  the
 4        complaint  substantially  alleges a violation of this Act
 5        or rules and regulations adopted pursuant to this Act, it
 6        shall conduct an investigation.  If, after conducting  an
 7        investigation,  the  Commission  is  satisfied  that  the
 8        alleged  violation  did  occur,  it  shall  proceed  with
 9        disciplinary  action  against the licensee as provided in
10        this Act.
11             (6)  To hear and determine appeals from orders of  a
12        local  commission  in  accordance  with the provisions of
13        this Act, as hereinafter set forth. Hearings  under  this
14        subsection  shall  be  held in Springfield or Chicago, at
15        whichever  location  is  the  more  convenient  for   the
16        majority of persons who are parties to the hearing.
17             (7)  The  commission shall establish uniform systems
18        of accounts to be kept by  all  retail  licensees  having
19        more   than   4  employees,  and  for  this  purpose  the
20        commission may classify all retail licensees having  more
21        than  4  employees  and  establish  a  uniform  system of
22        accounts for each class and prescribe the manner in which
23        such accounts shall be  kept.  The  commission  may  also
24        prescribe  the forms of accounts to be kept by all retail
25        licensees having more than 4 employees, including but not
26        limited to accounts of  earnings  and  expenses  and  any
27        distribution,  payment, or other distribution of earnings
28        or assets, and any other  forms,  records  and  memoranda
29        which  in the judgment of the commission may be necessary
30        or appropriate to carry out any of the provisions of this
31        Act, including but not limited to such forms, records and
32        memoranda as will readily and accurately disclose at  all
33        times  the  beneficial  ownership of such retail licensed
34        business.  The accounts,  forms,  records  and  memoranda
 
                            -5-      LRB093 09913 LRD 13639 a
 1        shall be available at all reasonable times for inspection
 2        by  authorized representatives of the State commission or
 3        by any local liquor control commissioner or  his  or  her
 4        authorized representative. The commission, may, from time
 5        to time, alter, amend or repeal, in whole or in part, any
 6        uniform  system  of  accounts,  or the form and manner of
 7        keeping accounts.
 8             (8)  In the conduct of any hearing authorized to  be
 9        held  by  the commission, to appoint, at the commission's
10        discretion,  hearing   officers   to   conduct   hearings
11        involving  complex  issues  or issues that will require a
12        protracted period of time  to  resolve,  to  examine,  or
13        cause  to  be  examined, under oath, any licensee, and to
14        examine or cause to be examined the books and records  of
15        such  licensee; to hear testimony and take proof material
16        for its  information  in  the  discharge  of  its  duties
17        hereunder;  to  administer  or  cause  to be administered
18        oaths;  for  any  such  purpose  to  issue  subpoena   or
19        subpoenas  to require the attendance of witnesses and the
20        production of books, which shall be effective in any part
21        of this State, and to adopt rules to implement its powers
22        under this paragraph (8).
23             Any Circuit Court may by order duly entered, require
24        the  attendance  of  witnesses  and  the  production   of
25        relevant books subpoenaed by the State commission and the
26        court  may  compel  obedience to its order by proceedings
27        for contempt.
28             (9)  To investigate the administration  of  laws  in
29        relation  to  alcoholic  liquors in this and other states
30        and any foreign countries, and to recommend from time  to
31        time  to  the  Governor  and  through  him  or her to the
32        legislature of this State, such amendments to  this  Act,
33        if  any,  as  it may think desirable and as will serve to
34        further the general broad purposes contained  in  Section
 
                            -6-      LRB093 09913 LRD 13639 a
 1        1-2 hereof.
 2             (10)  To adopt such rules and regulations consistent
 3        with  the provisions of this Act which shall be necessary
 4        for the control, sale or disposition of alcoholic  liquor
 5        damaged as a result of an accident, wreck, flood, fire or
 6        other similar occurrence.
 7             (11)  To   develop   industry  educational  programs
 8        related to responsible serving and selling,  particularly
 9        in   the  areas  of  overserving  consumers  and  illegal
10        underage  purchasing   and   consumption   of   alcoholic
11        beverages.
12             (11.1)  To  license  persons providing education and
13        training to alcohol beverage sellers  and  servers  under
14        the  Beverage  Alcohol  Sellers and Servers Education and
15        Training (BASSET) programs and to develop and  administer
16        a  public  awareness  program  in  Illinois  to reduce or
17        eliminate  the  illegal  purchase  and   consumption   of
18        alcoholic  beverage  products by persons under the age of
19        21. Application for a license  shall  be  made  on  forms
20        provided by the State Commission.
21             (12)  To   develop  and  maintain  a  repository  of
22        license and regulatory information.
23             (13)  On or before January 15, 1994, the  Commission
24        shall  issue a written report to the Governor and General
25        Assembly that is to be based on a comprehensive study  of
26        the  impact on and implications for the State of Illinois
27        of Section 1926 of the Federal ADAMHA Reorganization  Act
28        of  1992  (Public Law 102-321).  This study shall address
29        the extent to which Illinois currently complies with  the
30        provisions  of  P.L.  102-321  and  the rules promulgated
31        pursuant thereto.
32             As part of its report, the Commission shall  provide
33        the following essential information:
34                  (i)  the   number  of  retail  distributors  of
 
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 1             tobacco products, by type and  geographic  area,  in
 2             the State;
 3                  (ii)  the  number  of  reported  citations  and
 4             successful  convictions,  categorized  by  type  and
 5             location of retail distributor, for violation of the
 6             Sale  of  Tobacco  to  Minors  Act and the Smokeless
 7             Tobacco Limitation Act;
 8                  (iii)  the  extent  and  nature  of   organized
 9             educational  and  governmental  activities  that are
10             intended to promote, encourage or  otherwise  secure
11             compliance  with any Illinois laws that prohibit the
12             sale or distribution of tobacco products to  minors;
13             and
14                  (iv)  the  level  of access and availability of
15             tobacco products to individuals under the age of 18.
16        To  obtain  the  data  necessary  to  comply   with   the
17    provisions  of  P.L.  102-321  and  the  requirements of this
18    report, the  Commission  shall  conduct  random,  unannounced
19    inspections    of   a   geographically   and   scientifically
20    representative  sample  of   the   State's   retail   tobacco
21    distributors.
22        The  Commission  shall  consult  with  the  Department of
23    Public Health, the Department of Human Services, the Illinois
24    State Police and  any  other  executive  branch  agency,  and
25    private  organizations  that may have information relevant to
26    this report.
27        The Commission  may  contract  with  the  Food  and  Drug
28    Administration  of  the  U.S.  Department of Health and Human
29    Services to conduct unannounced  investigations  of  Illinois
30    tobacco  vendors  to  determine  compliance with federal laws
31    relating to the illegal  sale  of  cigarettes  and  smokeless
32    tobacco products to persons under the age of 18.
33        (b)  On  or  before  April 30, 1999, the Commission shall
34    present a written report to  the  Governor  and  the  General
 
                            -8-      LRB093 09913 LRD 13639 a
 1    Assembly that shall be based on a study of the impact of this
 2    amendatory  Act  of  1998  on  the  business  of  soliciting,
 3    selling,  and  shipping alcoholic liquor from outside of this
 4    State directly to residents of this State.
 5        As part of its report, the Commission shall  provide  the
 6    following information:
 7             (i)  the  amount  of  State  excise  and  sales  tax
 8        revenues  generated as a result of this amendatory Act of
 9        1998;
10             (ii)  the amount of licensing  fees  received  as  a
11        result of this amendatory Act of 1998;
12             (iii)  the number of reported violations, the number
13        of cease and desist notices issued by the Commission, the
14        number  of notices of violations issued to the Department
15        of Revenue, and the number of notices and  complaints  of
16        violations to law enforcement officials.
17    (Source:  P.A.  91-553,  eff.  8-14-99;  91-922, eff. 7-7-00;
18    92-378, eff. 8-16-01; 92-813, eff. 8-21-02.)

19        (235 ILCS 5/6-2) (from Ch. 43, par. 120)
20        Sec.  6-2.   Issuance  of  licenses  to  certain  persons
21    prohibited.
22        (a)  Except as otherwise provided in  subsection  (b)  of
23    this  Section  and  in  paragraph  (1)  of  subsection (a) of
24    Section 3-12, no license of any  kind  issued  by  the  State
25    Commission or any local commission shall be issued to:
26             (1)  A  person  who  is  not a resident of any city,
27        village or county in which the premises  covered  by  the
28        license  are  located; except in case of railroad or boat
29        licenses.
30             (2)  A person who  is  not  of  good  character  and
31        reputation in the community in which he resides.
32             (3)  A  person  who  is  not a citizen of the United
33        States.
 
                            -9-      LRB093 09913 LRD 13639 a
 1             (4)  A person who has been  convicted  of  a  felony
 2        under  any  Federal  or  State law, unless the Commission
 3        determines  that  such  person  has   been   sufficiently
 4        rehabilitated   to   warrant   the   public  trust  after
 5        considering  matters   set   forth   in   such   person's
 6        application  and  the  Commission's  investigation.   The
 7        burden  of proof of sufficient rehabilitation shall be on
 8        the applicant.
 9             (5)  A person who has been convicted  of  being  the
10        keeper or is keeping a house of ill fame.
11             (6)  A person who has been convicted of pandering or
12        other   crime  or  misdemeanor  opposed  to  decency  and
13        morality.
14             (7)  A person whose license issued  under  this  Act
15        has been revoked for cause.
16             (8)  A  person  who  at  the time of application for
17        renewal of any license  issued  hereunder  would  not  be
18        eligible for such license upon a first application.
19             (9)  A  copartnership,  if  any  general partnership
20        thereof, or any limited partnership thereof, owning  more
21        than 5% of the aggregate limited partner interest in such
22        copartnership  would not be eligible to receive a license
23        hereunder for any reason other than residence within  the
24        political  subdivision,  unless  residency is required by
25        local ordinance.
26             (10)  A corporation,  if  any  officer,  manager  or
27        director  thereof,  or  any  stockholder  or stockholders
28        owning in the aggregate more than 5% of the stock of such
29        corporation, would not be eligible to receive  a  license
30        hereunder  for  any  reason  other  than  citizenship and
31        residence within the political subdivision.
32             (10a)  A corporation unless it  is  incorporated  in
33        Illinois,  or unless it is a foreign corporation which is
34        qualified under the Business Corporation Act of  1983  to
 
                            -10-     LRB093 09913 LRD 13639 a
 1        transact business in Illinois.
 2             (11)  A  person whose place of business is conducted
 3        by a  manager  or  agent  unless  the  manager  or  agent
 4        possesses   the   same  qualifications  required  by  the
 5        licensee.
 6             (12)  A person who has been convicted of a violation
 7        of any Federal or State law concerning  the  manufacture,
 8        possession or sale of alcoholic liquor, subsequent to the
 9        passage  of  this Act or has forfeited his bond to appear
10        in court to answer charges for any such violation.
11             (13)  A person who does  not  beneficially  own  the
12        premises  for which a license is sought, or does not have
13        a lease thereon for the full period for which the license
14        is to be issued.
15             (14)  Any law enforcing public  official,  including
16        members  of  local liquor control commissions, any mayor,
17        alderman, or member of the city  council  or  commission,
18        any  president  of  the  village  board  of trustees, any
19        member of a village board of trustees, or  any  president
20        or  member  of a county board; and no such official shall
21        be interested  directly  in  the  manufacture,  sale,  or
22        distribution  of  alcoholic liquor, except that a license
23        may be granted to such official in relation  to  premises
24        that  are not located within the territory subject to the
25        jurisdiction of that official if  the  issuance  of  such
26        license   is   approved   by  the  State  Liquor  Control
27        Commission and except that a license may be granted, in a
28        city or village with a population of 50,000 or  less,  to
29        any  alderman,  member  of a city council, or member of a
30        village board of trustees in relation  to  premises  that
31        are   located   within   the  territory  subject  to  the
32        jurisdiction  of  that  official  if  (i)  the  sale   of
33        alcoholic liquor pursuant to the license is incidental to
34        the  selling of food, (ii) the issuance of the license is
 
                            -11-     LRB093 09913 LRD 13639 a
 1        approved by the State Commission, (iii) the  issuance  of
 2        the  license  is  in accordance with all applicable local
 3        ordinances in effect where the premises are located,  and
 4        (iv)  the  official  granted  a  license does not vote on
 5        alcoholic liquor  issues  pending  before  the  board  or
 6        council to which the license holder is elected.
 7             (15)  A  person who is not a beneficial owner of the
 8        business to be operated by the licensee.
 9             (16)  A person who has been convicted of a  gambling
10        offense  as  proscribed  by  any  of  subsections (a) (3)
11        through (a) (11) of Section 28-1 of, or as proscribed  by
12        Section  28-1.1 or 28-3 of, the Criminal Code of 1961, or
13        as proscribed  by  a  statute  replaced  by  any  of  the
14        aforesaid statutory provisions.
15             (17)  A  person or entity to whom a federal wagering
16        stamp has been issued by the federal  government,  unless
17        the  person  or entity is eligible to be issued a license
18        under the Raffles Act or the Illinois Pull Tabs  and  Jar
19        Games Act.
20        (b)  A  criminal  conviction  of  a  corporation  is  not
21    grounds  for  the  denial,  suspension,  or  revocation  of a
22    license applied  for  or  held  by  the  corporation  if  the
23    criminal  conviction was not the result of a violation of any
24    federal or State law concerning the  manufacture,  possession
25    or  sale  of  alcoholic  liquor,  the offense that led to the
26    conviction did not  result  in  any  financial  gain  to  the
27    corporation   and   the   corporation   has   terminated  its
28    relationship  with  each  director,  officer,  employee,   or
29    controlling shareholder whose actions directly contributed to
30    the  conviction  of  the  corporation.  The  Commission shall
31    determine if all provisions of this subsection (b) have  been
32    met  before  any  action  on  the  corporation's  license  is
33    initiated.
34    (Source: P.A. 92-378, eff. 8-16-01.)".