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Full Text of SB3022  100th General Assembly

SB3022sam001 100TH GENERAL ASSEMBLY

Sen. Antonio Muņoz

Filed: 4/20/2018

 

 


 

 


 
10000SB3022sam001LRB100 18964 RPS 38552 a

1
AMENDMENT TO SENATE BILL 3022

2    AMENDMENT NO. ______. Amend Senate Bill 3022 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Executive Reorganization Implementation
5Act is amended by changing Section 3.1 as follows:
 
6    (15 ILCS 15/3.1)  (from Ch. 127, par. 1803.1)
7    Sec. 3.1. "Agency directly responsible to the Governor" or
8"agency" means any office, officer, division, or part thereof,
9and any other office, nonelective officer, department,
10division, bureau, board, or commission in the executive branch
11of State government, except that it does not apply to any
12agency whose primary function is service to the General
13Assembly or the Judicial Branch of State government, or to any
14agency administered by the Attorney General, Secretary of
15State, State Comptroller or State Treasurer. In addition the
16term does not apply to the following agencies created by law

 

 

10000SB3022sam001- 2 -LRB100 18964 RPS 38552 a

1with the primary responsibility of exercising regulatory or
2adjudicatory functions independently of the Governor:
3    (1) the State Board of Elections;
4    (2) the State Board of Education;
5    (3) the Illinois Commerce Commission;
6    (4) the Illinois Workers' Compensation Commission;
7    (5) the Civil Service Commission;
8    (6) the Fair Employment Practices Commission;
9    (7) the Pollution Control Board;
10    (8) the Department of State Police Merit Board;
11    (9) the Illinois Racing Board;
12    (10) the Illinois Power Agency; .
13    (11) the Illinois Liquor Control Commission.
14(Source: P.A. 96-796, eff. 10-29-09; 97-618, eff. 10-26-11.)
 
15    Section 10. The Liquor Control Act of 1934 is amended by
16changing Sections 3-2, 3-12, and 8-5 and by adding Section 3-20
17as follows:
 
18    (235 ILCS 5/3-2)  (from Ch. 43, par. 98)
19    Sec. 3-2. Immediately, or soon as may be after the
20effective date of this Act, the Governor shall appoint 3
21members of the commission, one of whom shall be designated as
22"Chairman", one to hold office for a period of 2 years, one to
23hold office for a period of 4 years and one to hold office for a
24period of 6 years. Immediately, or as soon as may be after the

 

 

10000SB3022sam001- 3 -LRB100 18964 RPS 38552 a

1effective date of this amendatory Act of 1983, the Governor
2shall appoint 2 members to the commission to the offices
3created by this amendatory Act of 1983, one for an initial term
4expiring the third Monday in January of 1986 and one for an
5initial term expiring the third Monday in January of 1988. At
6the expiration of the term of any such commissioner the
7Governor shall reappoint said commissioner or appoint a
8successor of said commissioner for a period of 6 years. The
9Governor shall have power to fill vacancies in the office of
10any commissioner.
11    Notwithstanding any provision of this Section to the
12contrary, the term of office of each member of the commission
13is abolished on the effective date of this amendatory Act of
141985, but the incumbent members shall continue to exercise all
15of the powers and be subject to all of the duties of members of
16the commission until their respective successors are appointed
17and qualified. The Governor shall appoint 2 members of the
18commission whose terms of office shall expire on February 1,
191986, 2 members of the commission whose terms of office shall
20expire on February 1, 1988, and one member of the commission
21whose term shall expire on February 1, 1990. Their respective
22successors shall be appointed for terms of 6 years from the
23first day of February of the year of appointment. Each member
24shall serve until his successor is appointed and qualified.
25    The initial term of both of the 2 additional members
26appointed pursuant to this amendatory Act of the 91st General

 

 

10000SB3022sam001- 4 -LRB100 18964 RPS 38552 a

1Assembly shall expire on February 1, 2006. Their respective
2successors shall be appointed for terms of 6 years from the
3first day of February of the year of appointment. Each member
4shall serve until his or her successor is appointed and
5qualified.
6    Notwithstanding any action taken to fill the office on an
7acting, temporary, or other basis, the office of Executive
8Director of the Commission shall be vacant on January 1, 2019.
9On and after January 1, 2019, the Governor shall appoint the
10Executive Director of the Commission for a 4-year term, with
11the advice and consent of the Senate.
12(Source: P.A. 91-798, eff. 7-9-00.)
 
13    (235 ILCS 5/3-12)
14    Sec. 3-12. Powers and duties of State Commission.
15    (a) The State commission shall have the following powers,
16functions, and duties:
17        (1) To receive applications and to issue licenses to
18    manufacturers, foreign importers, importing distributors,
19    distributors, non-resident dealers, on premise consumption
20    retailers, off premise sale retailers, special event
21    retailer licensees, special use permit licenses, auction
22    liquor licenses, brew pubs, caterer retailers,
23    non-beverage users, railroads, including owners and
24    lessees of sleeping, dining and cafe cars, airplanes,
25    boats, brokers, and wine maker's premises licensees in

 

 

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1    accordance with the provisions of this Act, and to suspend
2    or revoke such licenses upon the State commission's
3    determination, upon notice after hearing, that a licensee
4    has violated any provision of this Act or any rule or
5    regulation issued pursuant thereto and in effect for 30
6    days prior to such violation. Except in the case of an
7    action taken pursuant to a violation of Section 6-3, 6-5,
8    or 6-9, any action by the State Commission to suspend or
9    revoke a licensee's license may be limited to the license
10    for the specific premises where the violation occurred. An
11    action for a violation of this Act shall be commenced by
12    the State Commission within 2 years after the date the
13    State Commission becomes aware of the violation.
14        In lieu of suspending or revoking a license, the
15    commission may impose a fine, upon the State commission's
16    determination and notice after hearing, that a licensee has
17    violated any provision of this Act or any rule or
18    regulation issued pursuant thereto and in effect for 30
19    days prior to such violation.
20        For the purpose of this paragraph (1), when determining
21    multiple violations for the sale of alcohol to a person
22    under the age of 21, a second or subsequent violation for
23    the sale of alcohol to a person under the age of 21 shall
24    only be considered if it was committed within 5 years after
25    the date when a prior violation for the sale of alcohol to
26    a person under the age of 21 was committed.

 

 

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1        The fine imposed under this paragraph may not exceed
2    $500 for each violation. Each day that the activity, which
3    gave rise to the original fine, continues is a separate
4    violation. The maximum fine that may be levied against any
5    licensee, for the period of the license, shall not exceed
6    $20,000. The maximum penalty that may be imposed on a
7    licensee for selling a bottle of alcoholic liquor with a
8    foreign object in it or serving from a bottle of alcoholic
9    liquor with a foreign object in it shall be the destruction
10    of 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 of
16    alcoholic liquor and a fine of up to $50.
17        Any notice issued by the State Commission to a licensee
18    for a violation of this Act or any notice with respect to
19    settlement or offer in compromise shall include the field
20    report, photographs, and any other supporting
21    documentation necessary to reasonably inform the licensee
22    of the nature and extent of the violation or the conduct
23    alleged to have occurred. The failure to include such
24    required documentation shall result in the dismissal of the
25    action.
26        (2) To adopt such rules and regulations consistent with

 

 

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1    the provisions of this Act which shall be necessary to
2    carry on its functions and duties to the end that the
3    health, safety and welfare of the People of the State of
4    Illinois shall be protected and temperance in the
5    consumption of alcoholic liquors shall be fostered and
6    promoted and to distribute copies of such rules and
7    regulations to all licensees affected thereby.
8        (3) To call upon other administrative departments of
9    the State, county and municipal governments, county and
10    city police departments and upon prosecuting officers for
11    such information and assistance as it deems necessary in
12    the performance of its duties.
13        (4) To recommend to local commissioners rules and
14    regulations, not inconsistent with the law, for the
15    distribution and sale of alcoholic liquors throughout the
16    State.
17        (5) To inspect, or cause to be inspected, any premises
18    in this State where alcoholic liquors are manufactured,
19    distributed, warehoused, or sold. Nothing in this Act
20    authorizes an agent of the Commission to inspect private
21    areas within the premises without reasonable suspicion or a
22    warrant during an inspection. "Private areas" include, but
23    are not limited to, safes, personal property, and closed
24    desks.
25        (5.1) Upon receipt of a complaint or upon having
26    knowledge that any person is engaged in business as a

 

 

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1    manufacturer, importing distributor, distributor, or
2    retailer without a license or valid license, to notify the
3    local liquor authority, file a complaint with the State's
4    Attorney's Office of the county where the incident
5    occurred, or initiate an investigation with the
6    appropriate law enforcement officials.
7        (5.2) To issue a cease and desist notice to persons
8    shipping alcoholic liquor into this State from a point
9    outside of this State if the shipment is in violation of
10    this Act.
11        (5.3) To receive complaints from licensees, local
12    officials, law enforcement agencies, organizations, and
13    persons stating that any licensee has been or is violating
14    any provision of this Act or the rules and regulations
15    issued pursuant to this Act. Such complaints shall be in
16    writing, signed and sworn to by the person making the
17    complaint, and shall state with specificity the facts in
18    relation to the alleged violation. If the Commission has
19    reasonable grounds to believe that the complaint
20    substantially alleges a violation of this Act or rules and
21    regulations adopted pursuant to this Act, it shall conduct
22    an investigation. If, after conducting an investigation,
23    the Commission is satisfied that the alleged violation did
24    occur, it shall proceed with disciplinary action against
25    the licensee as provided in this Act.
26        (6) To hear and determine appeals from orders of a

 

 

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1    local commission in accordance with the provisions of this
2    Act, as hereinafter set forth. Hearings under this
3    subsection shall be held in Springfield or Chicago, at
4    whichever location is the more convenient for the majority
5    of persons who are parties to the hearing.
6        (7) The commission shall establish uniform systems of
7    accounts to be kept by all retail licensees having more
8    than 4 employees, and for this purpose the commission may
9    classify all retail licensees having more than 4 employees
10    and establish a uniform system of accounts for each class
11    and prescribe the manner in which such accounts shall be
12    kept. The commission may also prescribe the forms of
13    accounts to be kept by all retail licensees having more
14    than 4 employees, including but not limited to accounts of
15    earnings and expenses and any distribution, payment, or
16    other distribution of earnings or assets, and any other
17    forms, records and memoranda which in the judgment of the
18    commission may be necessary or appropriate to carry out any
19    of the provisions of this Act, including but not limited to
20    such forms, records and memoranda as will readily and
21    accurately disclose at all times the beneficial ownership
22    of such retail licensed business. The accounts, forms,
23    records and memoranda shall be available at all reasonable
24    times for inspection by authorized representatives of the
25    State commission or by any local liquor control
26    commissioner or his or her authorized representative. The

 

 

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1    commission, may, from time to time, alter, amend or repeal,
2    in whole or in part, any uniform system of accounts, or the
3    form and manner of keeping accounts.
4        (8) In the conduct of any hearing authorized to be held
5    by the commission, to appoint, at the commission's
6    discretion, hearing officers to conduct hearings involving
7    complex issues or issues that will require a protracted
8    period of time to resolve, to examine, or cause to be
9    examined, under oath, any licensee, and to examine or cause
10    to be examined the books and records of such licensee; to
11    hear testimony and take proof material for its information
12    in the discharge of its duties hereunder; to administer or
13    cause to be administered oaths; for any such purpose to
14    issue subpoena or subpoenas to require the attendance of
15    witnesses and the production of books, which shall be
16    effective in any part of this State, and to adopt rules to
17    implement its powers under this paragraph (8).
18        Any Circuit Court may by order duly entered, require
19    the attendance of witnesses and the production of relevant
20    books subpoenaed by the State commission and the court may
21    compel obedience to its order by proceedings for contempt.
22        (9) To investigate the administration of laws in
23    relation to alcoholic liquors in this and other states and
24    any foreign countries, and to recommend from time to time
25    to the Governor and through him or her to the legislature
26    of this State, such amendments to this Act, if any, as it

 

 

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1    may think desirable and as will serve to further the
2    general broad purposes contained in Section 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 related
9    to responsible serving and selling, particularly in the
10    areas of overserving consumers and illegal underage
11    purchasing and consumption of alcoholic beverages.
12        (11.1) To license persons providing education and
13    training to alcohol beverage sellers and servers for
14    mandatory and non-mandatory training under the Beverage
15    Alcohol Sellers and Servers Education and Training
16    (BASSET) programs and to develop and administer a public
17    awareness program in Illinois to reduce or eliminate the
18    illegal purchase and consumption of alcoholic beverage
19    products by persons under the age of 21. Application for a
20    license shall be made on forms provided by the State
21    Commission.
22        (12) To develop and maintain a repository of license
23    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

 

 

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1    the impact on and implications for the State of Illinois of
2    Section 1926 of the federal ADAMHA Reorganization Act of
3    1992 (Public Law 102-321). This study shall address the
4    extent to which Illinois currently complies with the
5    provisions of P.L. 102-321 and the rules promulgated
6    pursuant thereto.
7        As part of its report, the Commission shall provide the
8    following essential information:
9            (i) the number of retail distributors of tobacco
10        products, by type and geographic area, in the State;
11            (ii) the number of reported citations and
12        successful convictions, categorized by type and
13        location of retail distributor, for violation of the
14        Prevention of Tobacco Use by Minors and Sale and
15        Distribution of Tobacco Products Act and the Smokeless
16        Tobacco Limitation Act;
17            (iii) the extent and nature of organized
18        educational and governmental activities that are
19        intended to promote, encourage or otherwise secure
20        compliance with any Illinois laws that prohibit the
21        sale or distribution of tobacco products to minors; and
22            (iv) the level of access and availability of
23        tobacco products to individuals under the age of 18.
24        To obtain the data necessary to comply with the
25    provisions of P.L. 102-321 and the requirements of this
26    report, the Commission shall conduct random, unannounced

 

 

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1    inspections of a geographically and scientifically
2    representative sample of the State's retail tobacco
3    distributors.
4        The Commission shall consult with the Department of
5    Public Health, the Department of Human Services, the
6    Illinois State Police and any other executive branch
7    agency, and private organizations that may have
8    information relevant to this report.
9        The Commission may contract with the Food and Drug
10    Administration of the U.S. Department of Health and Human
11    Services to conduct unannounced investigations of Illinois
12    tobacco vendors to determine compliance with federal laws
13    relating to the illegal sale of cigarettes and smokeless
14    tobacco products to persons under the age of 18.
15        (14) On or before April 30, 2008 and every 2 years
16    thereafter, the Commission shall present a written report
17    to the Governor and the General Assembly that shall be
18    based on a study of the impact of Public Act 95-634 on the
19    business of soliciting, selling, and shipping wine from
20    inside and outside of this State directly to residents of
21    this State. As part of its report, the Commission shall
22    provide all of the following information:
23            (A) The amount of State excise and sales tax
24        revenues generated.
25            (B) The amount of licensing fees received.
26            (C) The number of cases of wine shipped from inside

 

 

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1        and outside of this State directly to residents of this
2        State.
3            (D) The number of alcohol compliance operations
4        conducted.
5            (E) The number of winery shipper's licenses
6        issued.
7            (F) The number of each of the following: reported
8        violations; cease and desist notices issued by the
9        Commission; notices of violations issued by the
10        Commission and to the Department of Revenue; and
11        notices and complaints of violations to law
12        enforcement officials, including, without limitation,
13        the Illinois Attorney General and the U.S. Department
14        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
15        (15) As a means to reduce the underage consumption of
16    alcoholic liquors, the Commission shall conduct alcohol
17    compliance operations to investigate whether businesses
18    that are soliciting, selling, and shipping wine from inside
19    or outside of this State directly to residents of this
20    State are licensed by this State or are selling or
21    attempting to sell wine to persons under 21 years of age in
22    violation of this Act.
23        (16) The Commission shall, in addition to notifying any
24    appropriate law enforcement agency, submit notices of
25    complaints or violations of Sections 6-29 and 6-29.1 by
26    persons who do not hold a winery shipper's license under

 

 

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1    this Act to the Illinois Attorney General and to the U.S.
2    Department of Treasury's Alcohol and Tobacco Tax and Trade
3    Bureau.
4        (17)(A) A person licensed to make wine under the laws
5    of another state who has a winery shipper's license under
6    this Act and annually produces less than 25,000 gallons of
7    wine or a person who has a first-class or second-class wine
8    manufacturer's license, a first-class or second-class
9    wine-maker's license, or a limited wine manufacturer's
10    license under this Act and annually produces less than
11    25,000 gallons of wine may make application to the
12    Commission for a self-distribution exemption to allow the
13    sale of not more than 5,000 gallons of the exemption
14    holder's wine to retail licensees per year.
15        (B) In the application, which shall be sworn under
16    penalty of perjury, such person shall state (1) the date it
17    was established; (2) its volume of production and sales for
18    each year since its establishment; (3) its efforts to
19    establish distributor relationships; (4) that a
20    self-distribution exemption is necessary to facilitate the
21    marketing of its wine; and (5) that it will comply with the
22    liquor and revenue laws of the United States, this State,
23    and any other state where it is licensed.
24        (C) The Commission shall approve the application for a
25    self-distribution exemption if such person: (1) is in
26    compliance with State revenue and liquor laws; (2) is not a

 

 

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1    member of any affiliated group that produces more than
2    25,000 gallons of wine per annum or produces any other
3    alcoholic liquor; (3) will not annually produce for sale
4    more than 25,000 gallons of wine; and (4) will not annually
5    sell more than 5,000 gallons of its wine to retail
6    licensees.
7        (D) A self-distribution exemption holder shall
8    annually certify to the Commission its production of wine
9    in the previous 12 months and its anticipated production
10    and sales for the next 12 months. The Commission may fine,
11    suspend, or revoke a self-distribution exemption after a
12    hearing if it finds that the exemption holder has made a
13    material misrepresentation in its application, violated a
14    revenue or liquor law of Illinois, exceeded production of
15    25,000 gallons of wine in any calendar year, or become part
16    of an affiliated group producing more than 25,000 gallons
17    of wine or any other alcoholic liquor.
18        (E) Except in hearings for violations of this Act or
19    Public Act 95-634 or a bona fide investigation by duly
20    sworn law enforcement officials, the Commission, or its
21    agents, the Commission shall maintain the production and
22    sales information of a self-distribution exemption holder
23    as confidential and shall not release such information to
24    any person.
25        (F) The Commission shall issue regulations governing
26    self-distribution exemptions consistent with this Section

 

 

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1    and this Act.
2        (G) Nothing in this subsection (17) shall prohibit a
3    self-distribution exemption holder from entering into or
4    simultaneously having a distribution agreement with a
5    licensed Illinois distributor.
6        (H) It is the intent of this subsection (17) to promote
7    and continue orderly markets. The General Assembly finds
8    that in order to preserve Illinois' regulatory
9    distribution system it is necessary to create an exception
10    for smaller makers of wine as their wines are frequently
11    adjusted in varietals, mixes, vintages, and taste to find
12    and create market niches sometimes too small for
13    distributor or importing distributor business strategies.
14    Limited self-distribution rights will afford and allow
15    smaller makers of wine access to the marketplace in order
16    to develop a customer base without impairing the integrity
17    of the 3-tier system.
18        (18)(A) A class 1 brewer licensee, who must also be
19    either a licensed brewer or licensed non-resident dealer
20    and annually manufacture less than 930,000 gallons of beer,
21    may make application to the State Commission for a
22    self-distribution exemption to allow the sale of not more
23    than 232,500 gallons of the exemption holder's beer to
24    retail licensees per year.
25        (B) In the application, which shall be sworn under
26    penalty of perjury, the class 1 brewer licensee shall state

 

 

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1    (1) the date it was established; (2) its volume of beer
2    manufactured and sold for each year since its
3    establishment; (3) its efforts to establish distributor
4    relationships; (4) that a self-distribution exemption is
5    necessary to facilitate the marketing of its beer; and (5)
6    that it will comply with the alcoholic beverage and revenue
7    laws of the United States, this State, and any other state
8    where it is licensed.
9        (C) Any application submitted shall be posted on the
10    State Commission's website at least 45 days prior to action
11    by the State Commission. The State Commission shall approve
12    the application for a self-distribution exemption if the
13    class 1 brewer licensee: (1) is in compliance with the
14    State, revenue, and alcoholic beverage laws; (2) is not a
15    member of any affiliated group that manufactures more than
16    930,000 gallons of beer per annum or produces any other
17    alcoholic beverages; (3) shall not annually manufacture
18    for sale more than 930,000 gallons of beer; (4) shall not
19    annually sell more than 232,500 gallons of its beer to
20    retail licensees; and (5) has relinquished any brew pub
21    license held by the licensee, including any ownership
22    interest it held in the licensed brew pub.
23        (D) A self-distribution exemption holder shall
24    annually certify to the State Commission its manufacture of
25    beer during the previous 12 months and its anticipated
26    manufacture and sales of beer for the next 12 months. The

 

 

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1    State Commission may fine, suspend, or revoke a
2    self-distribution exemption after a hearing if it finds
3    that the exemption holder has made a material
4    misrepresentation in its application, violated a revenue
5    or alcoholic beverage law of Illinois, exceeded the
6    manufacture of 930,000 gallons of beer in any calendar year
7    or became part of an affiliated group manufacturing more
8    than 930,000 gallons of beer or any other alcoholic
9    beverage.
10        (E) The State Commission shall issue rules and
11    regulations governing self-distribution exemptions
12    consistent with this Act.
13        (F) Nothing in this paragraph (18) shall prohibit a
14    self-distribution exemption holder from entering into or
15    simultaneously having a distribution agreement with a
16    licensed Illinois importing distributor or a distributor.
17    If a self-distribution exemption holder enters into a
18    distribution agreement and has assigned distribution
19    rights to an importing distributor or distributor, then the
20    self-distribution exemption holder's distribution rights
21    in the assigned territories shall cease in a reasonable
22    time not to exceed 60 days.
23        (G) It is the intent of this paragraph (18) to promote
24    and continue orderly markets. The General Assembly finds
25    that in order to preserve Illinois' regulatory
26    distribution system, it is necessary to create an exception

 

 

10000SB3022sam001- 20 -LRB100 18964 RPS 38552 a

1    for smaller manufacturers in order to afford and allow such
2    smaller manufacturers of beer access to the marketplace in
3    order to develop a customer base without impairing the
4    integrity of the 3-tier system.
5    (b) On or before April 30, 1999, the Commission shall
6present a written report to the Governor and the General
7Assembly that shall be based on a study of the impact of Public
8Act 90-739 on the business of soliciting, selling, and shipping
9alcoholic liquor from outside of this State directly to
10residents of this State.
11    As part of its report, the Commission shall provide the
12following information:
13        (i) the amount of State excise and sales tax revenues
14    generated as a result of Public Act 90-739;
15        (ii) the amount of licensing fees received as a result
16    of Public Act 90-739;
17        (iii) the number of reported violations, the number of
18    cease and desist notices issued by the Commission, the
19    number of notices of violations issued to the Department of
20    Revenue, and the number of notices and complaints of
21    violations to law enforcement officials.
22(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
23100-134, eff. 8-18-17; 100-201, eff. 8-18-17.)
 
24    (235 ILCS 5/3-20 new)
25    Sec. 3-20. State Commission; separation from the

 

 

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1Department of Revenue.
2    (a) Executive Order No. 2003-9 is hereby superseded by this
3amendatory Act of the 100th General Assembly to the extent that
4Executive Order No. 2003-9 transferred clerks, management and
5staff support, employees, and other resources from the State
6Commission to the Department of Revenue.
7    (b) To the extent that Executive Order No. 2003-9
8transferred personnel to the Department of Revenue from the
9State Commission, those personnel shall be transferred to the
10State Commission. The status and rights of such employees under
11the Personnel Code shall not be affected by the transfer. The
12rights of the employees and the State of Illinois and its
13agencies under the Personnel Code and applicable collective
14bargaining agreements or under any pension, retirement, or
15annuity plan shall not be affected by this amendatory Act of
16the 100th General Assembly. To the extent that an employee
17performs duties for the State Commission and the Department of
18Revenue itself or any other division or agency within the
19Department of Revenue, that employee shall be transferred at
20the Governor's discretion.
21    (c) All books, records, papers, documents, property (real
22and personal), contracts, causes of action, and pending
23business pertaining to the powers, duties, rights, and
24responsibilities transferred by this amendatory Act of the
25100th General Assembly from the Department of Revenue to the
26State Commission, including, but not limited to, material in

 

 

10000SB3022sam001- 22 -LRB100 18964 RPS 38552 a

1electronic or magnetic format and necessary computer hardware
2and software, shall be transferred to the State Commission.
3    (d) All unexpended appropriations and balances and other
4funds available for use by the Department of Revenue to operate
5the State Commission shall be transferred for use by the State
6Commission. Unexpended balances so transferred shall be
7expended only for the purpose for which the appropriations were
8originally made.
9    (e) The powers, duties, rights, and responsibilities
10transferred from the Department of Revenue by this amendatory
11Act of the 100th General Assembly shall be vested in and shall
12be exercised by the State Commission.
13    (f) Whenever reports or notices are now required to be made
14or given or papers or documents furnished or served by any
15person to or upon the Department of Revenue in connection with
16any of the powers, duties, rights, and responsibilities
17transferred by this amendatory Act of the 100th General
18Assembly, the same shall be made, given, furnished, or served
19in the same manner to or upon the State Commission.
20    (g) Any rules of the Department of Revenue that relate to
21the functions transferred from the State Commission to the
22Department of Revenue by Executive Order No. 2003-9 that are in
23full force on the effective date of this amendatory Act of the
24100th General Assembly shall become the rules of the State
25Commission. This amendatory Act of the 100th General Assembly
26does not affect the legality of any such rules in the Illinois

 

 

10000SB3022sam001- 23 -LRB100 18964 RPS 38552 a

1Administrative Code.
2    Any proposed rules filed with the Secretary of State by the
3Department of Revenue that are pending in the rulemaking
4process on the effective date of this amendatory Act of the
5100th General Assembly and pertain to the functions transferred
6from the State Commission to the Department of Revenue by
7Executive Order No. 2003-9 shall be deemed to have been filed
8by the State Commission. As soon as practicable hereafter, the
9State Commission shall revise and clarify the rules transferred
10to it under this amendatory Act of the 100th General Assembly
11to reflect the reorganization of powers, duties, rights, and
12responsibilities affected by this amendatory Act of the 100th
13General Assembly, using the procedures for recodification of
14rules available under the Illinois Administrative Procedure
15Act, except that existing title, part, and section numbering
16for the affected rules may be retained.
 
17    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
18    Sec. 8-5. As soon as practicable after any return is filed
19but not before 90 days after the return is filed, or any
20amendments to that return, whichever is later, the Department
21shall examine such return or amended return and shall correct
22such return according to its best judgment and information,
23which return so corrected by the Department shall be prima
24facie correct and shall be prima facie evidence of the
25correctness of the amount of tax due, as shown therein. Instead

 

 

10000SB3022sam001- 24 -LRB100 18964 RPS 38552 a

1of requiring the licensee to file an amended return, the
2Department may simply notify the licensee of the correction or
3corrections it has made. Proof of such correction by the
4Department, or of the determination of the amount of tax due as
5provided in Sections 8-4 and 8-10, may be made at any hearing
6before the Department or in any legal proceeding by a
7reproduced copy of the Department's record relating thereto in
8the name of the Department under the certificate of the
9Director of Revenue. Such reproduced copy shall, without
10further proof, be admitted into evidence before the Department
11or in any legal proceeding and shall be prima facie proof of
12the correctness of the amount of tax due, as shown therein. If
13the return so corrected by the Department discloses the sale or
14use, by a licensed manufacturer or importing distributor, of
15alcoholic liquors as to which the tax provided for in this
16Article should have been paid, but has not been paid, in excess
17of the alcoholic liquors reported as being taxable by the
18licensee, and as to which the proper tax was paid the
19Department shall notify the licensee that it shall issue the
20taxpayer a notice of tax liability for the amount of tax
21claimed by the Department to be due, together with penalties at
22the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
23Uniform Penalty and Interest Act, which amount of tax shall be
24equivalent to the amount of tax which, at the prescribed rate
25per gallon, should have been paid with respect to the alcoholic
26liquors disposed of in excess of those reported as being

 

 

10000SB3022sam001- 25 -LRB100 18964 RPS 38552 a

1taxable. In a case where no return has been filed, the
2Department shall determine the amount of tax due according to
3its best judgment and information and shall issue the taxpayer
4a notice of tax liability for the amount of tax claimed by the
5Department to be due as herein provided together with penalties
6at the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
7Uniform Penalty and Interest Act. If, in administering the
8provisions of this Act, a comparison of a licensee's return or
9returns with the books, records and physical inventories of
10such licensee discloses a deficiency which cannot be allocated
11by the Department to a particular month or months, the
12Department shall issue the taxpayer a notice of tax liability
13for the amount of tax claimed by the Department to be due for a
14given period, but without any obligation upon the Department to
15allocate such deficiency to any particular month or months,
16together with penalties at the rates prescribed by Sections
173-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
18amount of tax shall be equivalent to the amount of tax which,
19at the prescribed rate per gallon, should have been paid with
20respect to the alcoholic liquors disposed of in excess of those
21reported being taxable, with the tax thereon having been paid
22under which circumstances the aforesaid notice of tax liability
23shall be prima facie correct and shall be prima facie evidence
24of the correctness of the amount of tax due as shown therein;
25and proof of such correctness may be made in accordance with,
26and the admissibility of a reproduced copy of such notice of

 

 

10000SB3022sam001- 26 -LRB100 18964 RPS 38552 a

1the Department's notice of tax liability shall be governed by,
2all the provisions of this Act applicable to corrected returns.
3    If the licensee dies or becomes a person under legal
4disability at any time before the Department issues its notice
5of tax liability, such notice shall be issued to the
6administrator, executor or other legal representative, as
7such, of the deceased or licensee who is under legal
8disability.
9    If such licensee or legal representative, within 60 days
10after such notice of tax liability, files a protest to such
11notice of tax liability and requests a hearing thereon, the
12Department shall give at least 7 days' notice to such licensee
13or legal representative, as the case may be, of the time and
14place fixed for such hearing and shall hold a hearing in
15conformity with the provisions of this Act, and pursuant
16thereto shall issue a final assessment to such licensee or
17legal representative for the amount found to be due as a result
18of such hearing.
19    If a protest to the notice of tax liability and a request
20for a hearing thereon is not filed within 60 days after such
21notice of tax liability, such notice of tax liability shall
22become final without the necessity of a final assessment being
23issued and shall be deemed to be a final assessment.
24    In case of failure to pay the tax, or any portion thereof,
25or any penalty provided for herein, when due, the Department
26may recover the amount of such tax, or portion thereof, or

 

 

10000SB3022sam001- 27 -LRB100 18964 RPS 38552 a

1penalty in a civil action; or if the licensee dies or becomes a
2person under legal disability, by filing a claim therefor
3against his or her estate; provided that no such claim shall be
4filed against the estate of any deceased or of the licensee who
5is under legal disability for any tax or penalty or portion
6thereof except in the manner prescribed and within the time
7limited by the Probate Act of 1975, as amended.
8    The collection of any such tax and penalty, or either, by
9any means provided for herein, shall not be a bar to any
10prosecution under this Act.
11    In addition to any other penalty provided for in this
12Article, any licensee who fails to pay any tax within the time
13required by this Article shall be subject to assessment of
14penalties and interest at rates set forth in the Uniform
15Penalty and Interest Act.
16(Source: P.A. 87-205; 87-879.)
 
17    Section 99. Effective date. This Act takes effect January
181, 2019, except that this Section and changes to Section 3-12
19of the Liquor Control Act of 1934 take effect upon becoming
20law.".