093_SB0411sam001

 










                                     LRB093 09914 LRD 12770 a

 1                    AMENDMENT TO SENATE BILL 411

 2        AMENDMENT NO.     .  Amend Senate Bill 411  by  replacing
 3    everything after the enacting clause with the following:

 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
 
                            -2-      LRB093 09914 LRD 12770 a
 1        this  Act  or  any  rule  or  regulation  issued pursuant
 2        thereto  and  in  effect  for  30  days  prior  to   such
 3        violation.
 4             In  lieu  of  suspending  or revoking a license, the
 5        commission may impose a fine, upon the State commission's
 6        determination and notice after hearing, that  a  licensee
 7        has  violated  any  provision  of this Act or any rule or
 8        regulation issued pursuant thereto and in effect  for  30
 9        days  prior  to  such  violation.  The fine imposed under
10        this paragraph may not exceed $500  for  each  violation.
11        Each  day  that  the  activity,  which  gave  rise to the
12        original fine, continues is a  separate  violation.   The
13        maximum fine that may be levied against any licensee, for
14        the  period of the license, shall not exceed $20,000. The
15        maximum penalty that may be imposed  on  a  licensee  for
16        selling  a  bottle  of  alcoholic  liquor  with a foreign
17        object in it or serving from a bottle of alcoholic liquor
18        with a foreign object in it shall be the  destruction  of
19        that  bottle of alcoholic liquor for the first 10 bottles
20        so sold or served from by the licensee.  For the eleventh
21        bottle of alcoholic liquor  and  for  each  third  bottle
22        thereafter  sold  or  served  from by the licensee with a
23        foreign object in it, the maximum  penalty  that  may  be
24        imposed  on the licensee is the destruction of the bottle
25        of alcoholic liquor and a fine of up to $50.
26             The State Commission may not  revoke  or  suspend  a
27        licensee's license or impose a fine upon a licensee under
28        this  paragraph  (1)  for  a  violation if the applicable
29        local liquor control commission has revoked or  suspended
30        the  licensee's  license  or  imposed  a  fine  upon  the
31        licensee for the same violation.
32             (2)  To  adopt such rules and regulations consistent
33        with the provisions of this Act which shall be  necessary
34        to  carry on its functions and duties to the end that the
 
                            -3-      LRB093 09914 LRD 12770 a
 1        health, safety and welfare of the People of the State  of
 2        Illinois   shall  be  protected  and  temperance  in  the
 3        consumption of alcoholic liquors shall  be  fostered  and
 4        promoted  and  to  distribute  copies  of  such rules and
 5        regulations to all licensees affected thereby.
 6             (3)  To call upon other  administrative  departments
 7        of  the  State,  county and municipal governments, county
 8        and city police departments and upon prosecuting officers
 9        for such information and assistance as it deems necessary
10        in the performance of its duties.
11             (4)  To recommend to local commissioners  rules  and
12        regulations,  not  inconsistent  with  the  law,  for the
13        distribution and sale of alcoholic liquors throughout the
14        State.
15             (5)  To inspect,  or  cause  to  be  inspected,  any
16        premises  in  this  State  where  alcoholic  liquors  are
17        manufactured, distributed, warehoused, or sold.
18             (5.1)  Upon  receipt  of  a complaint or upon having
19        knowledge that any person is engaged  in  business  as  a
20        manufacturer,   importing  distributor,  distributor,  or
21        retailer without a license or valid  license,  to  notify
22        the  local  liquor  authority,  file a complaint with the
23        State's  Attorney's  Office  of  the  county  where   the
24        incident  occurred, or initiate an investigation with the
25        appropriate law enforcement officials.
26             (5.2)  To issue a cease and desist notice to persons
27        shipping alcoholic liquor into this State  from  a  point
28        outside  of this State if the shipment is in violation of
29        this Act.
30             (5.3)  To receive complaints from  licensees,  local
31        officials,  law  enforcement agencies, organizations, and
32        persons  stating  that  any  licensee  has  been  or   is
33        violating  any  provision  of  this  Act or the rules and
34        regulations issued pursuant to this Act.  Such complaints
 
                            -4-      LRB093 09914 LRD 12770 a
 1        shall be in writing, signed and sworn to  by  the  person
 2        making  the  complaint,  and shall state with specificity
 3        the facts in relation to the alleged violation.   If  the
 4        Commission  has  reasonable  grounds  to believe that the
 5        complaint substantially alleges a violation of  this  Act
 6        or rules and regulations adopted pursuant to this Act, it
 7        shall  conduct an investigation.  If, after conducting an
 8        investigation,  the  Commission  is  satisfied  that  the
 9        alleged  violation  did  occur,  it  shall  proceed  with
10        disciplinary action against the licensee as  provided  in
11        this Act.
12             (6)  To  hear and determine appeals from orders of a
13        local commission in accordance  with  the  provisions  of
14        this  Act,  as hereinafter set forth. Hearings under this
15        subsection shall be held in Springfield  or  Chicago,  at
16        whichever   location  is  the  more  convenient  for  the
17        majority of persons who are parties to the hearing.
18             (7)  The commission shall establish uniform  systems
19        of  accounts  to  be  kept by all retail licensees having
20        more  than  4  employees,  and  for  this   purpose   the
21        commission  may classify all retail licensees having more
22        than 4  employees  and  establish  a  uniform  system  of
23        accounts for each class and prescribe the manner in which
24        such  accounts  shall  be  kept.  The commission may also
25        prescribe the forms of accounts to be kept by all  retail
26        licensees having more than 4 employees, including but not
27        limited  to  accounts  of  earnings  and expenses and any
28        distribution, payment, or other distribution of  earnings
29        or  assets,  and  any  other forms, records and memoranda
30        which in the judgment of the commission may be  necessary
31        or appropriate to carry out any of the provisions of this
32        Act, including but not limited to such forms, records and
33        memoranda  as will readily and accurately disclose at all
34        times the beneficial ownership of  such  retail  licensed
 
                            -5-      LRB093 09914 LRD 12770 a
 1        business.   The  accounts,  forms,  records and memoranda
 2        shall be available at all reasonable times for inspection
 3        by authorized representatives of the State commission  or
 4        by  any  local  liquor control commissioner or his or her
 5        authorized representative. The commission, may, from time
 6        to time, alter, amend or repeal, in whole or in part, any
 7        uniform system of accounts, or the  form  and  manner  of
 8        keeping accounts.
 9             (8)  In  the conduct of any hearing authorized to be
10        held by the commission, to appoint, at  the  commission's
11        discretion,   hearing   officers   to   conduct  hearings
12        involving complex issues or issues that  will  require  a
13        protracted  period  of  time  to  resolve, to examine, or
14        cause to be examined, under oath, any  licensee,  and  to
15        examine  or cause to be examined the books and records of
16        such licensee; to hear testimony and take proof  material
17        for  its  information  in  the  discharge  of  its duties
18        hereunder; to administer  or  cause  to  be  administered
19        oaths;   for  any  such  purpose  to  issue  subpoena  or
20        subpoenas to require the attendance of witnesses and  the
21        production of books, which shall be effective in any part
22        of this State, and to adopt rules to implement its powers
23        under this paragraph (8).
24             Any Circuit Court may by order duly entered, require
25        the   attendance  of  witnesses  and  the  production  of
26        relevant books subpoenaed by the State commission and the
27        court may compel obedience to its  order  by  proceedings
28        for contempt.
29             (9)  To  investigate  the  administration of laws in
30        relation to alcoholic liquors in this  and  other  states
31        and  any foreign countries, and to recommend from time to
32        time to the Governor  and  through  him  or  her  to  the
33        legislature  of  this State, such amendments to this Act,
34        if any, as it may think desirable and as  will  serve  to
 
                            -6-      LRB093 09914 LRD 12770 a
 1        further  the  general broad purposes contained in Section
 2        1-2 hereof.
 3             (10)  To adopt such rules and regulations consistent
 4        with the provisions of this Act which shall be  necessary
 5        for  the control, sale or disposition of alcoholic liquor
 6        damaged as a result of an accident, wreck, flood, fire or
 7        other similar occurrence.
 8             (11)  To  develop  industry   educational   programs
 9        related  to responsible serving and selling, particularly
10        in  the  areas  of  overserving  consumers  and   illegal
11        underage   purchasing   and   consumption   of  alcoholic
12        beverages.
13             (11.1)  To license persons providing  education  and
14        training  to  alcohol  beverage sellers and servers under
15        the Beverage Alcohol Sellers and  Servers  Education  and
16        Training  (BASSET) programs and to develop and administer
17        a public awareness  program  in  Illinois  to  reduce  or
18        eliminate   the   illegal  purchase  and  consumption  of
19        alcoholic beverage products by persons under the  age  of
20        21.  Application  for  a  license  shall be made on forms
21        provided by the State Commission.
22             (12)  To  develop  and  maintain  a  repository   of
23        license and regulatory information.
24             (13)  On  or before January 15, 1994, the Commission
25        shall issue a written report to the Governor and  General
26        Assembly  that is to be based on a comprehensive study of
27        the impact on and implications for the State of  Illinois
28        of  Section 1926 of the Federal ADAMHA Reorganization Act
29        of 1992 (Public Law 102-321).  This study  shall  address
30        the  extent to which Illinois currently complies with the
31        provisions of P.L.  102-321  and  the  rules  promulgated
32        pursuant thereto.
33             As  part of its report, the Commission shall provide
34        the following essential information:
 
                            -7-      LRB093 09914 LRD 12770 a
 1                  (i)  the  number  of  retail  distributors   of
 2             tobacco  products,  by  type and geographic area, in
 3             the State;
 4                  (ii)  the  number  of  reported  citations  and
 5             successful  convictions,  categorized  by  type  and
 6             location of retail distributor, for violation of the
 7             Sale of Tobacco to  Minors  Act  and  the  Smokeless
 8             Tobacco Limitation Act;
 9                  (iii)  the   extent  and  nature  of  organized
10             educational and  governmental  activities  that  are
11             intended  to  promote, encourage or otherwise secure
12             compliance with any Illinois laws that prohibit  the
13             sale  or distribution of tobacco products to minors;
14             and
15                  (iv)  the level of access and  availability  of
16             tobacco products to individuals under the age of 18.
17        To   obtain   the  data  necessary  to  comply  with  the
18    provisions of P.L.  102-321  and  the  requirements  of  this
19    report,  the  Commission  shall  conduct  random, unannounced
20    inspections   of   a   geographically   and    scientifically
21    representative   sample   of   the   State's  retail  tobacco
22    distributors.
23        The Commission  shall  consult  with  the  Department  of
24    Public Health, the Department of Human Services, the Illinois
25    State  Police  and  any  other  executive  branch agency, and
26    private organizations that may have information  relevant  to
27    this report.
28        The  Commission  may  contract  with  the  Food  and Drug
29    Administration of the U.S. Department  of  Health  and  Human
30    Services  to  conduct  unannounced investigations of Illinois
31    tobacco vendors to determine  compliance  with  federal  laws
32    relating  to  the  illegal  sale  of cigarettes and smokeless
33    tobacco products to persons under the age of 18.
34        (b)  On or before April 30, 1999,  the  Commission  shall
 
                            -8-      LRB093 09914 LRD 12770 a
 1    present  a  written  report  to  the Governor and the General
 2    Assembly that shall be based on a study of the impact of this
 3    amendatory  Act  of  1998  on  the  business  of  soliciting,
 4    selling, and shipping alcoholic liquor from outside  of  this
 5    State directly to residents of this State.
 6        As  part  of its report, the Commission shall provide the
 7    following information:
 8             (i)  the  amount  of  State  excise  and  sales  tax
 9        revenues generated as a result of this amendatory Act  of
10        1998;
11             (ii)  the  amount  of  licensing  fees received as a
12        result of this amendatory Act of 1998;
13             (iii)  the number of reported violations, the number
14        of cease and desist notices issued by the Commission, the
15        number of notices of violations issued to the  Department
16        of  Revenue,  and the number of notices and complaints of
17        violations to law enforcement officials.
18    (Source: P.A. 91-553,  eff.  8-14-99;  91-922,  eff.  7-7-00;
19    92-378, eff. 8-16-01; 92-813, eff. 8-21-02.)".