Rep. Sara Feigenholtz

Filed: 3/24/2014

 

 


 

 


 
09800HB5926ham002LRB098 20305 RPS 57558 a

1
AMENDMENT TO HOUSE BILL 5926

2    AMENDMENT NO. ______. Amend House Bill 5926 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 3-12 and by adding Section 6-27.1 as follows:
 
6    (235 ILCS 5/3-12)
7    Sec. 3-12. Powers and duties of State Commission.
8    (a) The State commission shall have the following powers,
9functions and duties:
10        (1) To receive applications and to issue licenses to
11    manufacturers, foreign importers, importing distributors,
12    distributors, non-resident dealers, on premise consumption
13    retailers, off premise sale retailers, special event
14    retailer licensees, special use permit licenses, auction
15    liquor licenses, brew pubs, caterer retailers,
16    non-beverage users, railroads, including owners and

 

 

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1    lessees of sleeping, dining and cafe cars, airplanes,
2    boats, brokers, and wine maker's premises licensees in
3    accordance with the provisions of this Act, and to suspend
4    or revoke such licenses upon the State commission's
5    determination, upon notice after hearing, that a licensee
6    has violated any provision of this Act or any rule or
7    regulation issued pursuant thereto and in effect for 30
8    days prior to such violation. Except in the case of an
9    action taken pursuant to a violation of Section 6-3, 6-5,
10    or 6-9, any action by the State Commission to suspend or
11    revoke a licensee's license may be limited to the license
12    for the specific premises where the violation occurred.
13        In lieu of suspending or revoking a license, the
14    commission may impose a fine, upon the State commission's
15    determination and notice after hearing, that a licensee has
16    violated any provision of this Act or any rule or
17    regulation issued pursuant thereto and in effect for 30
18    days prior to such violation. The fine imposed under this
19    paragraph may not exceed $500 for each violation. Each day
20    that the activity, which gave rise to the original fine,
21    continues is a separate violation. The maximum fine that
22    may be levied against any licensee, for the period of the
23    license, shall not exceed $20,000. The maximum penalty that
24    may be imposed on a licensee for selling a bottle of
25    alcoholic liquor with a foreign object in it or serving
26    from a bottle of alcoholic liquor with a foreign object in

 

 

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1    it shall be the destruction of that bottle of alcoholic
2    liquor for the first 10 bottles so sold or served from by
3    the licensee. For the eleventh bottle of alcoholic liquor
4    and for each third bottle thereafter sold or served from by
5    the licensee with a foreign object in it, the maximum
6    penalty that may be imposed on the licensee is the
7    destruction of the bottle of alcoholic liquor and a fine of
8    up to $50.
9        (2) To adopt such rules and regulations consistent with
10    the provisions of this Act which shall be necessary to
11    carry on its functions and duties to the end that the
12    health, safety and welfare of the People of the State of
13    Illinois shall be protected and temperance in the
14    consumption of alcoholic liquors shall be fostered and
15    promoted and to distribute copies of such rules and
16    regulations to all licensees affected thereby.
17        (3) To call upon other administrative departments of
18    the State, county and municipal governments, county and
19    city police departments and upon prosecuting officers for
20    such information and assistance as it deems necessary in
21    the performance of its duties.
22        (4) To recommend to local commissioners rules and
23    regulations, not inconsistent with the law, for the
24    distribution and sale of alcoholic liquors throughout the
25    State.
26        (5) To inspect, or cause to be inspected, any premises

 

 

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1    in this State where alcoholic liquors are manufactured,
2    distributed, warehoused, or sold.
3        (5.1) Upon receipt of a complaint or upon having
4    knowledge that any person is engaged in business as a
5    manufacturer, importing distributor, distributor, or
6    retailer without a license or valid license, to notify the
7    local liquor authority, file a complaint with the State's
8    Attorney's Office of the county where the incident
9    occurred, or initiate an investigation with the
10    appropriate law enforcement officials.
11        (5.2) To issue a cease and desist notice to persons
12    shipping alcoholic liquor into this State from a point
13    outside of this State if the shipment is in violation of
14    this Act.
15        (5.3) To receive complaints from licensees, local
16    officials, law enforcement agencies, organizations, and
17    persons stating that any licensee has been or is violating
18    any provision of this Act or the rules and regulations
19    issued pursuant to this Act. Such complaints shall be in
20    writing, signed and sworn to by the person making the
21    complaint, and shall state with specificity the facts in
22    relation to the alleged violation. If the Commission has
23    reasonable grounds to believe that the complaint
24    substantially alleges a violation of this Act or rules and
25    regulations adopted pursuant to this Act, it shall conduct
26    an investigation. If, after conducting an investigation,

 

 

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1    the Commission is satisfied that the alleged violation did
2    occur, it shall proceed with disciplinary action against
3    the licensee as provided in this Act.
4        (6) To hear and determine appeals from orders of a
5    local commission in accordance with the provisions of this
6    Act, as hereinafter set forth. Hearings under this
7    subsection shall be held in Springfield or Chicago, at
8    whichever location is the more convenient for the majority
9    of persons who are parties to the hearing.
10        (7) The commission shall establish uniform systems of
11    accounts to be kept by all retail licensees having more
12    than 4 employees, and for this purpose the commission may
13    classify all retail licensees having more than 4 employees
14    and establish a uniform system of accounts for each class
15    and prescribe the manner in which such accounts shall be
16    kept. The commission may also prescribe the forms of
17    accounts to be kept by all retail licensees having more
18    than 4 employees, including but not limited to accounts of
19    earnings and expenses and any distribution, payment, or
20    other distribution of earnings or assets, and any other
21    forms, records and memoranda which in the judgment of the
22    commission may be necessary or appropriate to carry out any
23    of the provisions of this Act, including but not limited to
24    such forms, records and memoranda as will readily and
25    accurately disclose at all times the beneficial ownership
26    of such retail licensed business. The accounts, forms,

 

 

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

 

 

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1    relation to alcoholic liquors in this and other states and
2    any foreign countries, and to recommend from time to time
3    to the Governor and through him or her to the legislature
4    of this State, such amendments to this Act, if any, as it
5    may think desirable and as will serve to further the
6    general broad purposes contained in Section 1-2 hereof.
7        (10) To adopt such rules and regulations consistent
8    with the provisions of this Act which shall be necessary
9    for the control, sale or disposition of alcoholic liquor
10    damaged as a result of an accident, wreck, flood, fire or
11    other similar occurrence.
12        (11) To develop industry educational programs related
13    to responsible serving and selling, particularly in the
14    areas of overserving consumers and illegal underage
15    purchasing and consumption of alcoholic beverages.
16        (11.1) To license persons providing education and
17    training to alcohol beverage sellers and servers for
18    mandatory and non-mandatory training under the Beverage
19    Alcohol Sellers and Servers Education and Training
20    (BASSET) programs and to develop and administer a public
21    awareness program in Illinois to reduce or eliminate the
22    illegal purchase and consumption of alcoholic beverage
23    products by persons under the age of 21. Application for a
24    license shall be made on forms provided by the State
25    Commission.
26        (12) To develop and maintain a repository of license

 

 

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1    and regulatory information.
2        (13) On or before January 15, 1994, the Commission
3    shall issue a written report to the Governor and General
4    Assembly that is to be based on a comprehensive study of
5    the impact on and implications for the State of Illinois of
6    Section 1926 of the Federal ADAMHA Reorganization Act of
7    1992 (Public Law 102-321). This study shall address the
8    extent to which Illinois currently complies with the
9    provisions of P.L. 102-321 and the rules promulgated
10    pursuant thereto.
11        As part of its report, the Commission shall provide the
12    following essential information:
13            (i) the number of retail distributors of tobacco
14        products, by type and geographic area, in the State;
15            (ii) the number of reported citations and
16        successful convictions, categorized by type and
17        location of retail distributor, for violation of the
18        Prevention of Tobacco Use by Minors and Sale and
19        Distribution of Tobacco Products Act and the Smokeless
20        Tobacco Limitation Act;
21            (iii) the extent and nature of organized
22        educational and governmental activities that are
23        intended to promote, encourage or otherwise secure
24        compliance with any Illinois laws that prohibit the
25        sale or distribution of tobacco products to minors; and
26            (iv) the level of access and availability of

 

 

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1        tobacco products to individuals under the age of 18.
2        To obtain the data necessary to comply with the
3    provisions of P.L. 102-321 and the requirements of this
4    report, the Commission shall conduct random, unannounced
5    inspections of a geographically and scientifically
6    representative sample of the State's retail tobacco
7    distributors.
8        The Commission shall consult with the Department of
9    Public Health, the Department of Human Services, the
10    Illinois State Police and any other executive branch
11    agency, and private organizations that may have
12    information relevant to this report.
13        The Commission may contract with the Food and Drug
14    Administration of the U.S. Department of Health and Human
15    Services to conduct unannounced investigations of Illinois
16    tobacco vendors to determine compliance with federal laws
17    relating to the illegal sale of cigarettes and smokeless
18    tobacco products to persons under the age of 18.
19        (14) On or before April 30, 2008 and every 2 years
20    thereafter, the Commission shall present a written report
21    to the Governor and the General Assembly that shall be
22    based on a study of the impact of this amendatory Act of
23    the 95th General Assembly on the business of soliciting,
24    selling, and shipping wine from inside and outside of this
25    State directly to residents of this State. As part of its
26    report, the Commission shall provide all of the following

 

 

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1    information:
2            (A) The amount of State excise and sales tax
3        revenues generated.
4            (B) The amount of licensing fees received.
5            (C) The number of cases of wine shipped from inside
6        and outside of this State directly to residents of this
7        State.
8            (D) The number of alcohol compliance operations
9        conducted.
10            (E) The number of winery shipper's licenses
11        issued.
12            (F) The number of each of the following: reported
13        violations; cease and desist notices issued by the
14        Commission; notices of violations issued by the
15        Commission and to the Department of Revenue; and
16        notices and complaints of violations to law
17        enforcement officials, including, without limitation,
18        the Illinois Attorney General and the U.S. Department
19        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
20        (15) As a means to reduce the underage consumption of
21    alcoholic liquors, the Commission shall conduct alcohol
22    compliance operations to investigate whether businesses
23    that are soliciting, selling, and shipping wine from inside
24    or outside of this State directly to residents of this
25    State are licensed by this State or are selling or
26    attempting to sell wine to persons under 21 years of age in

 

 

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1    violation of this Act.
2        (16) The Commission shall, in addition to notifying any
3    appropriate law enforcement agency, submit notices of
4    complaints or violations of Sections 6-29 and 6-29.1 by
5    persons who do not hold a winery shipper's license under
6    this amendatory Act to the Illinois Attorney General and to
7    the U.S. Department of Treasury's Alcohol and Tobacco Tax
8    and Trade Bureau.
9        (17) (A) A person licensed to make wine under the laws
10    of another state who has a winery shipper's license under
11    this amendatory Act and annually produces less than 25,000
12    gallons of wine or a person who has a first-class or
13    second-class wine manufacturer's license, a first-class or
14    second-class wine-maker's license, or a limited wine
15    manufacturer's license under this Act and annually
16    produces less than 25,000 gallons of wine may make
17    application to the Commission for a self-distribution
18    exemption to allow the sale of not more than 5,000 gallons
19    of the exemption holder's wine to retail licensees per
20    year.
21            (B) In the application, which shall be sworn under
22        penalty of perjury, such person shall state (1) the
23        date it was established; (2) its volume of production
24        and sales for each year since its establishment; (3)
25        its efforts to establish distributor relationships;
26        (4) that a self-distribution exemption is necessary to

 

 

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1        facilitate the marketing of its wine; and (5) that it
2        will comply with the liquor and revenue laws of the
3        United States, this State, and any other state where it
4        is licensed.
5            (C) The Commission shall approve the application
6        for a self-distribution exemption if such person: (1)
7        is in compliance with State revenue and liquor laws;
8        (2) is not a member of any affiliated group that
9        produces more than 25,000 gallons of wine per annum or
10        produces any other alcoholic liquor; (3) will not
11        annually produce for sale more than 25,000 gallons of
12        wine; and (4) will not annually sell more than 5,000
13        gallons of its wine to retail licensees.
14            (D) A self-distribution exemption holder shall
15        annually certify to the Commission its production of
16        wine in the previous 12 months and its anticipated
17        production and sales for the next 12 months. The
18        Commission may fine, suspend, or revoke a
19        self-distribution exemption after a hearing if it
20        finds that the exemption holder has made a material
21        misrepresentation in its application, violated a
22        revenue or liquor law of Illinois, exceeded production
23        of 25,000 gallons of wine in any calendar year, or
24        become part of an affiliated group producing more than
25        25,000 gallons of wine or any other alcoholic liquor.
26            (E) Except in hearings for violations of this Act

 

 

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1        or amendatory Act or a bona fide investigation by duly
2        sworn law enforcement officials, the Commission, or
3        its agents, the Commission shall maintain the
4        production and sales information of a
5        self-distribution exemption holder as confidential and
6        shall not release such information to any person.
7            (F) The Commission shall issue regulations
8        governing self-distribution exemptions consistent with
9        this Section and this Act.
10            (G) Nothing in this subsection (17) shall prohibit
11        a self-distribution exemption holder from entering
12        into or simultaneously having a distribution agreement
13        with a licensed Illinois distributor.
14            (H) It is the intent of this subsection (17) to
15        promote and continue orderly markets. The General
16        Assembly finds that in order to preserve Illinois'
17        regulatory distribution system it is necessary to
18        create an exception for smaller makers of wine as their
19        wines are frequently adjusted in varietals, mixes,
20        vintages, and taste to find and create market niches
21        sometimes too small for distributor or importing
22        distributor business strategies. Limited
23        self-distribution rights will afford and allow smaller
24        makers of wine access to the marketplace in order to
25        develop a customer base without impairing the
26        integrity of the 3-tier system.

 

 

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1        (18) (A) A craft brewer licensee, who must also be
2    either a licensed brewer or licensed non-resident dealer
3    and annually manufacture less than 930,000 gallons of beer,
4    may make application to the Commission for a
5    self-distribution exemption to allow the sale of not more
6    than 232,500 gallons of the exemption holder's beer to
7    retail licensees per year.
8            (B) In the application, which shall be sworn under
9        penalty of perjury, the craft brewer licensee shall
10        state (1) the date it was established; (2) its volume
11        of beer manufactured and sold for each year since its
12        establishment; (3) its efforts to establish
13        distributor relationships; (4) that a
14        self-distribution exemption is necessary to facilitate
15        the marketing of its beer; and (5) that it will comply
16        with the alcoholic beverage and revenue laws of the
17        United States, this State, and any other state where it
18        is licensed.
19            (C) Any application submitted shall be posted on
20        the Commission's website at least 45 days prior to
21        action by the Commission. The Commission shall approve
22        the application for a self-distribution exemption if
23        the craft brewer licensee: (1) is in compliance with
24        the State, revenue, and alcoholic beverage laws; (2) is
25        not a member of any affiliated group that manufacturers
26        more than 930,000 gallons of beer per annum or produces

 

 

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1        any other alcoholic beverages; (3) shall not annually
2        manufacture for sale more than 930,000 gallons of beer;
3        and (4) shall not annually sell more than 232,500
4        gallons of its beer to retail licensees.
5            (D) A self-distribution exemption holder shall
6        annually certify to the Commission its manufacture of
7        beer during the previous 12 months and its anticipated
8        manufacture and sales of beer for the next 12 months.
9        The Commission may fine, suspend, or revoke a
10        self-distribution exemption after a hearing if it
11        finds that the exemption holder has made a material
12        misrepresentation in its application, violated a
13        revenue or alcoholic beverage law of Illinois,
14        exceeded the manufacture of 930,000 gallons of beer in
15        any calendar year or became part of an affiliated group
16        manufacturing more than 930,000 gallons of beer or any
17        other alcoholic beverage.
18            (E) The Commission shall issue rules and
19        regulations governing self-distribution exemptions
20        consistent with this Act.
21            (F) Nothing in this paragraph (18) shall prohibit a
22        self-distribution exemption holder from entering into
23        or simultaneously having a distribution agreement with
24        a licensed Illinois importing distributor or a
25        distributor. If a self-distribution exemption holder
26        enters into a distribution agreement and has assigned

 

 

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1        distribution rights to an importing distributor or
2        distributor, then the self-distribution exemption
3        holder's distribution rights in the assigned
4        territories shall cease in a reasonable time not to
5        exceed 60 days.
6            (G) It is the intent of this paragraph (18) to
7        promote and continue orderly markets. The General
8        Assembly finds that in order to preserve Illinois'
9        regulatory distribution system, it is necessary to
10        create an exception for smaller manufacturers in order
11        to afford and allow such smaller manufacturers of beer
12        access to the marketplace in order to develop a
13        customer base without impairing the integrity of the
14        3-tier system.
15    (b) On or before April 30, 1999, the Commission shall
16present a written report to the Governor and the General
17Assembly that shall be based on a study of the impact of this
18amendatory Act of 1998 on the business of soliciting, selling,
19and shipping alcoholic liquor from outside of this State
20directly to residents of this State.
21    As part of its report, the Commission shall provide the
22following information:
23        (i) the amount of State excise and sales tax revenues
24    generated as a result of this amendatory Act of 1998;
25        (ii) the amount of licensing fees received as a result
26    of this amendatory Act of 1998;

 

 

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1        (iii) the number of reported violations, the number of
2    cease and desist notices issued by the Commission, the
3    number of notices of violations issued to the Department of
4    Revenue, and the number of notices and complaints of
5    violations to law enforcement officials.
6(Source: P.A. 97-5, eff. 6-1-11; 98-401, eff. 8-16-13.)
 
7    (235 ILCS 5/6-27.1 new)
8    Sec. 6-27.1. Responsible alcohol service server training.
9    (a) Unless issued a valid server training certificate
10between July 1, 2012 and July 1, 2015 by a certified Beverage
11Alcohol Sellers and Servers Education and Training (BASSET)
12trainer, all alcohol servers are required to obtain and
13complete training in basic responsible alcohol service as
14outlined in 77 Ill. Adm. Code 3500 by July 1, 2015 or within 30
15days after the alcohol server begins his or her employment,
16whichever is later. There is no limit to the amount of times a
17server may take the training. A certificate of training belongs
18to the server, and a server may transfer a certificate of
19training to a different employer, but shall not transfer a
20certificate of training to another server. Proof that an
21alcohol server has been trained must be available upon
22reasonable request by State law enforcement officials. For the
23purpose of this Section, "alcohol servers" means persons who
24sell or serve open containers of alcoholic beverages at retail
25and anyone whose job description entails the checking of

 

 

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1identification for the purchase of open containers of alcoholic
2beverages at retail or for entry into the licensed premises.
3The definition does not include (i) a distributor or importing
4distributor conducting product sampling as authorized in
5Section 6-31 of this Act or a registered tasting
6representative, as provided in 11 Ill. Adm. Code 100.40,
7conducting a tasting, as defined in 11 Ill. Adm. Code 100.10;
8(ii) a volunteer serving alcoholic beverages at a charitable
9function; or (iii) an instructor engaged in training or
10educating on the proper technique for using a system that
11dispenses alcoholic beverages.
12    (b) Responsible alcohol service training must cover and
13assess knowledge of the topics noted in 77 Ill. Adm. Code
143500.155.
15    (c) Beginning on the effective date of this amendatory Act
16of the 98th General Assembly, but no later than April 1, 2015,
17all existing BASSET trainers who are already BASSET certified
18as of the effective date of this amendatory Act of the 98th
19General Assembly shall be recertified by the State Commission
20and be required to comply with the conditions for server
21training set forth in this amendatory Act of the 98th General
22Assembly.
23    (d) Training modules and certificate program plans must be
24approved by the State Commission. All documents, materials, or
25information related to responsible alcohol service training
26program approval that are submitted to the State Commission are

 

 

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1confidential and shall not be open to public inspection or
2dissemination and are exempt from disclosure.
3    The State Commission shall only approve programs that meet
4the following criteria:
5        (1) the training course covers the content specified in
6    77 Ill. Adm. Code 3500.155;
7        (2) if the training course is classroom-based, the
8    classroom training is at least 4 hours, is available in
9    English and Spanish, and includes a test;
10        (3) if the training course is online or computer-based,
11    the course is designed in a way that ensures that no
12    content can be skipped, is interactive, has audio for
13    content for servers that have a disability, and includes a
14    test;
15        (4) training and testing is based on a job task
16    analysis that clearly identifies and focuses on the
17    knowledge, skills, and abilities needed to responsibly
18    serve alcoholic beverages and is developed using best
19    practices in instructional design and exam development to
20    ensure that the program is fair and legally defensible;
21        (5) training and testing is conducted by any means
22    available, including, but not limited to, online,
23    computer, classroom, or live trainers; and
24        (6) the program must provide access on a
25    24-hour-per-day, 7-days-per-week basis for certificate
26    verification for State Commission, State law enforcement

 

 

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1    officials, and employers to be able to verify certificate
2    authenticity.
3    (e) Nothing in subsection (d) of this Section shall be
4construed to require a program to use a test administrator or
5proctor.
6    (f) A certificate issued from a BASSET-licensed training
7program shall be accepted as meeting the training requirements
8for all server license and permit laws and ordinances in the
9State.
10    (g) A responsible alcohol service training certificate
11from a BASSET-licensed program shall be valid for 3 years.
12    (h) The provisions of this Section shall apply beginning
13July 1, 2015. From July 1, 2015 through December 31, 2015,
14enforcement of the provisions of this Section shall be limited
15to education and notification of the requirements to encourage
16compliance.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".