Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Public Act 100-0134


 

Public Act 0134 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0134
 
HB2878 EnrolledLRB100 09902 RPS 20073 b

    AN ACT concerning liquor.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Liquor Control Act of 1934 is amended by
changing Section 3-12 as follows:
 
    (235 ILCS 5/3-12)
    Sec. 3-12. Powers and duties of State Commission.
    (a) The State commission shall have the following powers,
functions, and duties:
        (1) To receive applications and to issue licenses to
    manufacturers, foreign importers, importing distributors,
    distributors, non-resident dealers, on premise consumption
    retailers, off premise sale retailers, special event
    retailer licensees, special use permit licenses, auction
    liquor licenses, brew pubs, caterer retailers,
    non-beverage users, railroads, including owners and
    lessees of sleeping, dining and cafe cars, airplanes,
    boats, brokers, and wine maker's premises licensees in
    accordance with the provisions of this Act, and to suspend
    or revoke such licenses upon the State commission's
    determination, upon notice after hearing, that a licensee
    has violated any provision of this Act or any rule or
    regulation issued pursuant thereto and in effect for 30
    days prior to such violation. Except in the case of an
    action taken pursuant to a violation of Section 6-3, 6-5,
    or 6-9, any action by the State Commission to suspend or
    revoke a licensee's license may be limited to the license
    for the specific premises where the violation occurred. An
    action for a violation of this Act shall be commenced by
    the State Commission within 2 years after the date the
    State Commission becomes aware of the violation.
        In lieu of suspending or revoking a license, the
    commission may impose a fine, upon the State commission's
    determination and notice after hearing, that a licensee has
    violated any provision of this Act or any rule or
    regulation issued pursuant thereto and in effect for 30
    days prior to such violation.
        For the purpose of this paragraph (1), when determining
    multiple violations for the sale of alcohol to a person
    under the age of 21, a second or subsequent violation for
    the sale of alcohol to a person under the age of 21 shall
    only be considered if it was committed within 5 years after
    the date when a prior violation for the sale of alcohol to
    a person under the age of 21 was committed.
        The fine imposed under this paragraph may not exceed
    $500 for each violation. Each day that the activity, which
    gave rise to the original fine, continues is a separate
    violation. The maximum fine that may be levied against any
    licensee, for the period of the license, shall not exceed
    $20,000. The maximum penalty that may be imposed on a
    licensee for selling a bottle of alcoholic liquor with a
    foreign object in it or serving from a bottle of alcoholic
    liquor with a foreign object in it shall be the destruction
    of that bottle of alcoholic liquor for the first 10 bottles
    so sold or served from by the licensee. For the eleventh
    bottle of alcoholic liquor and for each third bottle
    thereafter sold or served from by the licensee with a
    foreign object in it, the maximum penalty that may be
    imposed on the licensee is the destruction of the bottle of
    alcoholic liquor and a fine of up to $50.
        Any notice issued by the State Commission to a licensee
    for a violation of this Act or any notice with respect to
    settlement or offer in compromise shall include the field
    report, photographs, and any other supporting
    documentation necessary to reasonably inform the licensee
    of the nature and extent of the violation or the conduct
    alleged to have occurred.
        (2) To adopt such rules and regulations consistent with
    the provisions of this Act which shall be necessary to
    carry on its functions and duties to the end that the
    health, safety and welfare of the People of the State of
    Illinois shall be protected and temperance in the
    consumption of alcoholic liquors shall be fostered and
    promoted and to distribute copies of such rules and
    regulations to all licensees affected thereby.
        (3) To call upon other administrative departments of
    the State, county and municipal governments, county and
    city police departments and upon prosecuting officers for
    such information and assistance as it deems necessary in
    the performance of its duties.
        (4) To recommend to local commissioners rules and
    regulations, not inconsistent with the law, for the
    distribution and sale of alcoholic liquors throughout the
    State.
        (5) To inspect, or cause to be inspected, any premises
    in this State where alcoholic liquors are manufactured,
    distributed, warehoused, or sold. Nothing in this Act
    authorizes an agent of the Commission to inspect private
    areas within the premises without reasonable suspicion or a
    warrant during an inspection. "Private areas" include, but
    are not limited to, safes, personal property, and closed
    desks.
        (5.1) Upon receipt of a complaint or upon having
    knowledge that any person is engaged in business as a
    manufacturer, importing distributor, distributor, or
    retailer without a license or valid license, to notify the
    local liquor authority, file a complaint with the State's
    Attorney's Office of the county where the incident
    occurred, or initiate an investigation with the
    appropriate law enforcement officials.
        (5.2) To issue a cease and desist notice to persons
    shipping alcoholic liquor into this State from a point
    outside of this State if the shipment is in violation of
    this Act.
        (5.3) To receive complaints from licensees, local
    officials, law enforcement agencies, organizations, and
    persons stating that any licensee has been or is violating
    any provision of this Act or the rules and regulations
    issued pursuant to this Act. Such complaints shall be in
    writing, signed and sworn to by the person making the
    complaint, and shall state with specificity the facts in
    relation to the alleged violation. If the Commission has
    reasonable grounds to believe that the complaint
    substantially alleges a violation of this Act or rules and
    regulations adopted pursuant to this Act, it shall conduct
    an investigation. If, after conducting an investigation,
    the Commission is satisfied that the alleged violation did
    occur, it shall proceed with disciplinary action against
    the licensee as provided in this Act.
        (6) To hear and determine appeals from orders of a
    local commission in accordance with the provisions of this
    Act, as hereinafter set forth. Hearings under this
    subsection shall be held in Springfield or Chicago, at
    whichever location is the more convenient for the majority
    of persons who are parties to the hearing.
        (7) The commission shall establish uniform systems of
    accounts to be kept by all retail licensees having more
    than 4 employees, and for this purpose the commission may
    classify all retail licensees having more than 4 employees
    and establish a uniform system of accounts for each class
    and prescribe the manner in which such accounts shall be
    kept. The commission may also prescribe the forms of
    accounts to be kept by all retail licensees having more
    than 4 employees, including but not limited to accounts of
    earnings and expenses and any distribution, payment, or
    other distribution of earnings or assets, and any other
    forms, records and memoranda which in the judgment of the
    commission may be necessary or appropriate to carry out any
    of the provisions of this Act, including but not limited to
    such forms, records and memoranda as will readily and
    accurately disclose at all times the beneficial ownership
    of such retail licensed business. The accounts, forms,
    records and memoranda shall be available at all reasonable
    times for inspection by authorized representatives of the
    State commission or by any local liquor control
    commissioner or his or her authorized representative. The
    commission, may, from time to time, alter, amend or repeal,
    in whole or in part, any uniform system of accounts, or the
    form and manner of keeping accounts.
        (8) In the conduct of any hearing authorized to be held
    by the commission, to appoint, at the commission's
    discretion, hearing officers to conduct hearings involving
    complex issues or issues that will require a protracted
    period of time to resolve, to examine, or cause to be
    examined, under oath, any licensee, and to examine or cause
    to be examined the books and records of such licensee; to
    hear testimony and take proof material for its information
    in the discharge of its duties hereunder; to administer or
    cause to be administered oaths; for any such purpose to
    issue subpoena or subpoenas to require the attendance of
    witnesses and the production of books, which shall be
    effective in any part of this State, and to adopt rules to
    implement its powers under this paragraph (8).
        Any Circuit Court may by order duly entered, require
    the attendance of witnesses and the production of relevant
    books subpoenaed by the State commission and the court may
    compel obedience to its order by proceedings for contempt.
        (9) To investigate the administration of laws in
    relation to alcoholic liquors in this and other states and
    any foreign countries, and to recommend from time to time
    to the Governor and through him or her to the legislature
    of this State, such amendments to this Act, if any, as it
    may think desirable and as will serve to further the
    general broad purposes contained in Section 1-2 hereof.
        (10) To adopt such rules and regulations consistent
    with the provisions of this Act which shall be necessary
    for the control, sale or disposition of alcoholic liquor
    damaged as a result of an accident, wreck, flood, fire or
    other similar occurrence.
        (11) To develop industry educational programs related
    to responsible serving and selling, particularly in the
    areas of overserving consumers and illegal underage
    purchasing and consumption of alcoholic beverages.
        (11.1) To license persons providing education and
    training to alcohol beverage sellers and servers for
    mandatory and non-mandatory training under the Beverage
    Alcohol Sellers and Servers Education and Training
    (BASSET) programs and to develop and administer a public
    awareness program in Illinois to reduce or eliminate the
    illegal purchase and consumption of alcoholic beverage
    products by persons under the age of 21. Application for a
    license shall be made on forms provided by the State
    Commission.
        (12) To develop and maintain a repository of license
    and regulatory information.
        (13) On or before January 15, 1994, the Commission
    shall issue a written report to the Governor and General
    Assembly that is to be based on a comprehensive study of
    the impact on and implications for the State of Illinois of
    Section 1926 of the federal Federal ADAMHA Reorganization
    Act of 1992 (Public Law 102-321). This study shall address
    the extent to which Illinois currently complies with the
    provisions of P.L. 102-321 and the rules promulgated
    pursuant thereto.
        As part of its report, the Commission shall provide the
    following essential information:
            (i) the number of retail distributors of tobacco
        products, by type and geographic area, in the State;
            (ii) the number of reported citations and
        successful convictions, categorized by type and
        location of retail distributor, for violation of the
        Prevention of Tobacco Use by Minors and Sale and
        Distribution of Tobacco Products Act and the Smokeless
        Tobacco Limitation Act;
            (iii) the extent and nature of organized
        educational and governmental activities that are
        intended to promote, encourage or otherwise secure
        compliance with any Illinois laws that prohibit the
        sale or distribution of tobacco products to minors; and
            (iv) the level of access and availability of
        tobacco products to individuals under the age of 18.
        To obtain the data necessary to comply with the
    provisions of P.L. 102-321 and the requirements of this
    report, the Commission shall conduct random, unannounced
    inspections of a geographically and scientifically
    representative sample of the State's retail tobacco
    distributors.
        The Commission shall consult with the Department of
    Public Health, the Department of Human Services, the
    Illinois State Police and any other executive branch
    agency, and private organizations that may have
    information relevant to this report.
        The Commission may contract with the Food and Drug
    Administration of the U.S. Department of Health and Human
    Services to conduct unannounced investigations of Illinois
    tobacco vendors to determine compliance with federal laws
    relating to the illegal sale of cigarettes and smokeless
    tobacco products to persons under the age of 18.
        (14) On or before April 30, 2008 and every 2 years
    thereafter, the Commission shall present a written report
    to the Governor and the General Assembly that shall be
    based on a study of the impact of Public Act 95-634 this
    amendatory Act of the 95th General Assembly on the business
    of soliciting, selling, and shipping wine from inside and
    outside of this State directly to residents of this State.
    As part of its report, the Commission shall provide all of
    the following information:
            (A) The amount of State excise and sales tax
        revenues generated.
            (B) The amount of licensing fees received.
            (C) The number of cases of wine shipped from inside
        and outside of this State directly to residents of this
        State.
            (D) The number of alcohol compliance operations
        conducted.
            (E) The number of winery shipper's licenses
        issued.
            (F) The number of each of the following: reported
        violations; cease and desist notices issued by the
        Commission; notices of violations issued by the
        Commission and to the Department of Revenue; and
        notices and complaints of violations to law
        enforcement officials, including, without limitation,
        the Illinois Attorney General and the U.S. Department
        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
        (15) As a means to reduce the underage consumption of
    alcoholic liquors, the Commission shall conduct alcohol
    compliance operations to investigate whether businesses
    that are soliciting, selling, and shipping wine from inside
    or outside of this State directly to residents of this
    State are licensed by this State or are selling or
    attempting to sell wine to persons under 21 years of age in
    violation of this Act.
        (16) The Commission shall, in addition to notifying any
    appropriate law enforcement agency, submit notices of
    complaints or violations of Sections 6-29 and 6-29.1 by
    persons who do not hold a winery shipper's license under
    this amendatory Act to the Illinois Attorney General and to
    the U.S. Department of Treasury's Alcohol and Tobacco Tax
    and Trade Bureau.
        (17) (A) A person licensed to make wine under the laws
    of another state who has a winery shipper's license under
    this amendatory Act and annually produces less than 25,000
    gallons of wine or a person who has a first-class or
    second-class wine manufacturer's license, a first-class or
    second-class wine-maker's license, or a limited wine
    manufacturer's license under this Act and annually
    produces less than 25,000 gallons of wine may make
    application to the Commission for a self-distribution
    exemption to allow the sale of not more than 5,000 gallons
    of the exemption holder's wine to retail licensees per
    year.
            (B) In the application, which shall be sworn under
        penalty of perjury, such person shall state (1) the
        date it was established; (2) its volume of production
        and sales for each year since its establishment; (3)
        its efforts to establish distributor relationships;
        (4) that a self-distribution exemption is necessary to
        facilitate the marketing of its wine; and (5) that it
        will comply with the liquor and revenue laws of the
        United States, this State, and any other state where it
        is licensed.
            (C) The Commission shall approve the application
        for a self-distribution exemption if such person: (1)
        is in compliance with State revenue and liquor laws;
        (2) is not a member of any affiliated group that
        produces more than 25,000 gallons of wine per annum or
        produces any other alcoholic liquor; (3) will not
        annually produce for sale more than 25,000 gallons of
        wine; and (4) will not annually sell more than 5,000
        gallons of its wine to retail licensees.
            (D) A self-distribution exemption holder shall
        annually certify to the Commission its production of
        wine in the previous 12 months and its anticipated
        production and sales for the next 12 months. The
        Commission may fine, suspend, or revoke a
        self-distribution exemption after a hearing if it
        finds that the exemption holder has made a material
        misrepresentation in its application, violated a
        revenue or liquor law of Illinois, exceeded production
        of 25,000 gallons of wine in any calendar year, or
        become part of an affiliated group producing more than
        25,000 gallons of wine or any other alcoholic liquor.
            (E) Except in hearings for violations of this Act
        or Public Act 95-634 amendatory Act or a bona fide
        investigation by duly sworn law enforcement officials,
        the Commission, or its agents, the Commission shall
        maintain the production and sales information of a
        self-distribution exemption holder as confidential and
        shall not release such information to any person.
            (F) The Commission shall issue regulations
        governing self-distribution exemptions consistent with
        this Section and this Act.
            (G) Nothing in this subsection (17) shall prohibit
        a self-distribution exemption holder from entering
        into or simultaneously having a distribution agreement
        with a licensed Illinois distributor.
            (H) It is the intent of this subsection (17) to
        promote and continue orderly markets. The General
        Assembly finds that in order to preserve Illinois'
        regulatory distribution system it is necessary to
        create an exception for smaller makers of wine as their
        wines are frequently adjusted in varietals, mixes,
        vintages, and taste to find and create market niches
        sometimes too small for distributor or importing
        distributor business strategies. Limited
        self-distribution rights will afford and allow smaller
        makers of wine access to the marketplace in order to
        develop a customer base without impairing the
        integrity of the 3-tier system.
        (18) (A) A class 1 brewer licensee, who must also be
    either a licensed brewer or licensed non-resident dealer
    and annually manufacture less than 930,000 gallons of beer,
    may make application to the State Commission for a
    self-distribution exemption to allow the sale of not more
    than 232,500 gallons of the exemption holder's beer to
    retail licensees per year.
            (B) In the application, which shall be sworn under
        penalty of perjury, the class 1 brewer licensee shall
        state (1) the date it was established; (2) its volume
        of beer manufactured and sold for each year since its
        establishment; (3) its efforts to establish
        distributor relationships; (4) that a
        self-distribution exemption is necessary to facilitate
        the marketing of its beer; and (5) that it will comply
        with the alcoholic beverage and revenue laws of the
        United States, this State, and any other state where it
        is licensed.
            (C) Any application submitted shall be posted on
        the State Commission's website at least 45 days prior
        to action by the State Commission. The State Commission
        shall approve the application for a self-distribution
        exemption if the class 1 brewer licensee: (1) is in
        compliance with the State, revenue, and alcoholic
        beverage laws; (2) is not a member of any affiliated
        group that manufactures manufacturers more than
        930,000 gallons of beer per annum or produces any other
        alcoholic beverages; (3) shall not annually
        manufacture for sale more than 930,000 gallons of beer;
        (4) shall not annually sell more than 232,500 gallons
        of its beer to retail licensees; and (5) has
        relinquished any brew pub license held by the licensee,
        including any ownership interest it held in the
        licensed brew pub.
            (D) A self-distribution exemption holder shall
        annually certify to the State Commission its
        manufacture of beer during the previous 12 months and
        its anticipated manufacture and sales of beer for the
        next 12 months. The State Commission may fine, suspend,
        or revoke a self-distribution exemption after a
        hearing if it finds that the exemption holder has made
        a material misrepresentation in its application,
        violated a revenue or alcoholic beverage law of
        Illinois, exceeded the manufacture of 930,000 gallons
        of beer in any calendar year or became part of an
        affiliated group manufacturing more than 930,000
        gallons of beer or any other alcoholic beverage.
            (E) The State Commission shall issue rules and
        regulations governing self-distribution exemptions
        consistent with this Act.
            (F) Nothing in this paragraph (18) shall prohibit a
        self-distribution exemption holder from entering into
        or simultaneously having a distribution agreement with
        a licensed Illinois importing distributor or a
        distributor. If a self-distribution exemption holder
        enters into a distribution agreement and has assigned
        distribution rights to an importing distributor or
        distributor, then the self-distribution exemption
        holder's distribution rights in the assigned
        territories shall cease in a reasonable time not to
        exceed 60 days.
            (G) It is the intent of this paragraph (18) to
        promote and continue orderly markets. The General
        Assembly finds that in order to preserve Illinois'
        regulatory distribution system, it is necessary to
        create an exception for smaller manufacturers in order
        to afford and allow such smaller manufacturers of beer
        access to the marketplace in order to develop a
        customer base without impairing the integrity of the
        3-tier system.
    (b) On or before April 30, 1999, the Commission shall
present a written report to the Governor and the General
Assembly that shall be based on a study of the impact of Public
Act 90-739 this amendatory Act of 1998 on the business of
soliciting, selling, and shipping alcoholic liquor from
outside of this State directly to residents of this State.
    As part of its report, the Commission shall provide the
following information:
        (i) the amount of State excise and sales tax revenues
    generated as a result of Public Act 90-739 this amendatory
    Act of 1998;
        (ii) the amount of licensing fees received as a result
    of Public Act 90-739 this amendatory Act of 1998;
        (iii) the number of reported violations, the number of
    cease and desist notices issued by the Commission, the
    number of notices of violations issued to the Department of
    Revenue, and the number of notices and complaints of
    violations to law enforcement officials.
(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15;
98-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
revised 9-13-16.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/18/2017