State of Illinois
91st General Assembly
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Public Act 91-0553

HB1700 Enrolled                                LRB9103063LDmb

    AN ACT to  amend  the  Liquor  Control  Act  of  1934  by
changing Sections 3-12 and 7-6.

    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 Sections 3-12 and 7-6 as follows:

    (235 ILCS 5/3-12) (from Ch. 43, par. 108)
    Sec.  3-12.   (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
retail 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.
    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.   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.
    (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.
    (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 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;  and  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.
    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.
    (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  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 Sale of
    Tobacco  to  Minors  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.
    (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 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 this amendatory Act of
    1998;
         (ii)  the amount of licensing  fees  received  as  a
    result of 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. 89-507, eff. 7-1-97; 90-9, eff. 7-1-97; 90-432,
eff. 1-1-98; 90-655, eff. 7-30-98; 90-739, eff. 8-13-98.)

    (235 ILCS 5/7-6) (from Ch. 43, par. 150)
    Sec.   7-6.    All  proceedings  for  the  revocation  or
suspension  of  licenses  of   manufacturers,   distributors,
importing   distributors,   non-resident   dealers,   foreign
importers, non-beverage users, railroads, airplanes and boats
shall  be  before  the State Commission. All such proceedings
and all proceedings for the revocation  or  suspension  of  a
retailer's  license  before  the State commission shall be in
accordance with rules and regulations established by  it  not
inconsistent  with  law. However, no such license shall be so
revoked or suspended except after  a  hearing  by  the  State
commission  with  reasonable notice to the licensee served by
registered or certified mail with return receipt requested at
least 10 5 days prior to the hearings at the last known place
of business of the  licensee  and  after  an  opportunity  to
appear  and  defend.  Such  notice shall specify the time and
place of the hearing, and the  nature  of  the  charges,  the
specific  provisions  of  the Act and rules violated, and the
specific facts  supporting  the  charges  or  violation.  The
findings of the Commission shall be predicated upon competent
evidence.   The   revocation   of   a   local  license  shall
automatically result in the revocation of  a  State  license.
All procedures for the suspension or revocation of a license,
as  enumerated  above, are applicable to the levying of fines
for violations of this Act or any rule or  regulation  issued
pursuant thereto.
(Source: P.A. 82-783.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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