Sen. Elgie R. Sims, Jr.

Filed: 5/15/2019





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2    AMENDMENT NO. ______. Amend House Bill 2577 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-4, 8-2, 3-12, 10-1, and 10-7.1 as follows:
6    (235 ILCS 5/3-4)  (from Ch. 43, par. 100)
7    Sec. 3-4. Authority to conduct investigations. The State
8Commission commission shall obtain, pursuant to the provisions
9of the "Personnel Code" enacted by the 69th General Assembly,
10such inspectors, clerks, and other employees as may be
11necessary to carry out the provisions of this Act, or to
12perform the duties and exercise the powers conferred by law
13upon the State Commission commission. The inspectors obtained
14by the State Commission shall not be peace officers and shall
15not exercise any powers of a peace officer.
16    The State Commission shall have the power to appoint



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1investigators to conduct investigations, searches, seizures,
2arrests, and other duties required to enforce the provisions of
3this Act, on behalf of the State Commission, and to ensure the
4health, safety, and welfare of the People of the State of
5Illinois. The Commission's investigators are peace officers
6and have all the powers possessed by police officers in cities
7and by sheriffs. State Commission investigators may exercise
8these powers throughout the State whenever enforcing the
9provisions of this Act, subject to the rules and orders of the
10State Commission. No State Commission investigator may have
11peace officer status or may exercise police powers unless: (1)
12he or she successfully completes the basic police training
13course mandated and approved by the Illinois Law Enforcement
14Training Standards Board; or (2) the Illinois Law Enforcement
15Training Standards Board waives the training requirement by
16reason of the investigator's prior law enforcement experience,
17training, or both.
18    The Executive Director must authorize to each investigator
19of the State Commission and to any other employee of the
20Department exercising the powers of a peace officer a distinct
21badge that, on its face: (1) clearly states that the badge is
22authorized by the State Commission; and (2) contains a unique
23identifying number. No other badge shall be authorized by the
24State Commission. Nothing in this Section prohibits the
25Executive Director from issuing shields or other distinctive
26identification to employees performing security or regulatory



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1duties who are not peace officers if the Executive Director
2determines that a shield or distinctive identification is
3needed by the employee to carry out his or her
5(Source: P.A. 82-783.)
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
17    lessees of sleeping, dining and cafe cars, airplanes,
18    boats, brokers, and wine maker's premises licensees in
19    accordance with the provisions of this Act, and to suspend
20    or revoke such licenses upon the State Commission's
21    determination, upon notice after hearing, that a licensee
22    has violated any provision of this Act or any rule or
23    regulation issued pursuant thereto and in effect for 30
24    days prior to such violation. Except in the case of an
25    action taken pursuant to a violation of Section 6-3, 6-5,



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1    or 6-9, any action by the State Commission to suspend or
2    revoke a licensee's license may be limited to the license
3    for the specific premises where the violation occurred. An
4    action for a violation of this Act shall be commenced by
5    the State Commission within 2 years after the date the
6    State Commission becomes aware of the violation.
7        In lieu of suspending or revoking a license, the
8    commission may impose a fine, upon the State Commission's
9    determination and notice after hearing, that a licensee has
10    violated any provision of this Act or any rule or
11    regulation issued pursuant thereto and in effect for 30
12    days prior to such violation.
13        For the purpose of this paragraph (1), when determining
14    multiple violations for the sale of alcohol to a person
15    under the age of 21, a second or subsequent violation for
16    the sale of alcohol to a person under the age of 21 shall
17    only be considered if it was committed within 5 years after
18    the date when a prior violation for the sale of alcohol to
19    a person under the age of 21 was committed.
20        The fine imposed under this paragraph may not exceed
21    $500 for each violation. Each day that the activity, which
22    gave rise to the original fine, continues is a separate
23    violation. The maximum fine that may be levied against any
24    licensee, for the period of the license, shall not exceed
25    $20,000. The maximum penalty that may be imposed on a
26    licensee for selling a bottle of alcoholic liquor with a



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1    foreign object in it or serving from a bottle of alcoholic
2    liquor with a foreign object in it shall be the destruction
3    of that bottle of alcoholic liquor for the first 10 bottles
4    so sold or served from by the licensee. For the eleventh
5    bottle of alcoholic liquor and for each third bottle
6    thereafter sold or served from by the licensee with a
7    foreign object in it, the maximum penalty that may be
8    imposed on the licensee is the destruction of the bottle of
9    alcoholic liquor and a fine of up to $50.
10        Any notice issued by the State Commission to a licensee
11    for a violation of this Act or any notice with respect to
12    settlement or offer in compromise shall include the field
13    report, photographs, and any other supporting
14    documentation necessary to reasonably inform the licensee
15    of the nature and extent of the violation or the conduct
16    alleged to have occurred. The failure to include such
17    required documentation shall result in the dismissal of the
18    action.
19        (2) To adopt such rules and regulations consistent with
20    the provisions of this Act which shall be necessary to
21    carry on its functions and duties to the end that the
22    health, safety and welfare of the People of the State of
23    Illinois shall be protected and temperance in the
24    consumption of alcoholic liquors shall be fostered and
25    promoted and to distribute copies of such rules and
26    regulations to all licensees affected thereby.



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1        (3) To call upon other administrative departments of
2    the State, county and municipal governments, county and
3    city police departments and upon prosecuting officers for
4    such information and assistance as it deems necessary in
5    the performance of its duties.
6        (4) To recommend to local commissioners rules and
7    regulations, not inconsistent with the law, for the
8    distribution and sale of alcoholic liquors throughout the
9    State.
10        (5) To inspect, or cause to be inspected, any premises
11    in this State where alcoholic liquors are manufactured,
12    distributed, warehoused, or sold. Nothing in this Act
13    authorizes an agent of the State Commission Commission to
14    inspect private areas within the premises without
15    reasonable suspicion or a warrant during an inspection.
16    "Private areas" include, but are not limited to, safes,
17    personal property, and closed desks.
18        (5.1) Upon receipt of a complaint or upon having
19    knowledge that any person is engaged in business as a
20    manufacturer, importing distributor, distributor, or
21    retailer without a license or valid license, to conduct an
22    investigation. If, after conducting an investigation, the
23    State Commission is satisfied that the alleged conduct
24    occurred or is occurring, it may issue a cease and desist
25    notice as provided in this Act, impose civil penalties as
26    provided in this Act, to notify the local liquor authority,



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1    or file a complaint with the State's Attorney's Office of
2    the county where the incident occurred or the Attorney
3    General , or initiate an investigation with the appropriate
4    law enforcement officials.
5        (5.2) Upon receipt of a complaint or upon having
6    knowledge that any person is To issue a cease and desist
7    notice to persons shipping alcoholic liquor into this State
8    from a point outside of this State if the shipment is in
9    violation of this Act, to conduct an investigation. If,
10    after conducting an investigation, the State Commission is
11    satisfied that the alleged conduct occurred or is
12    occurring, it may issue a cease and desist notice as
13    provided in this Act, impose civil penalties as provided in
14    this Act, notify the foreign jurisdiction, or file a
15    complaint with the State's Attorney's Office of the county
16    where the incident occurred or the Attorney General.
17        (5.3) To receive complaints from licensees, local
18    officials, law enforcement agencies, organizations, and
19    persons stating that any licensee has been or is violating
20    any provision of this Act or the rules and regulations
21    issued pursuant to this Act. Such complaints shall be in
22    writing, signed and sworn to by the person making the
23    complaint, and shall state with specificity the facts in
24    relation to the alleged violation. If the State Commission
25    has reasonable grounds to believe that the complaint
26    substantially alleges a violation of this Act or rules and



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1    regulations adopted pursuant to this Act, it shall conduct
2    an investigation. If, after conducting an investigation,
3    the State Commission is satisfied that the alleged
4    violation did occur, it shall proceed with disciplinary
5    action against the licensee as provided in this Act.
6        (5.4) To make arrests and issue notices of civil
7    violations where necessary for the enforcement of this Act.
8        (5.5) To investigate any and all unlicensed activity.
9        (5.6) To impose civil penalties or fines to any person
10    who, without holding a valid license, engages in conduct
11    that requires a license pursuant to this Act, in an amount
12    not to exceed $20,000 for each offense as determined by the
13    State Commission. A civil penalty shall be assessed by the
14    State Commission after a hearing is held in accordance with
15    the provisions set forth in this Act regarding the
16    provision of a hearing for the revocation or suspension of
17    a license.
18        (6) To hear and determine appeals from orders of a
19    local commission in accordance with the provisions of this
20    Act, as hereinafter set forth. Hearings under this
21    subsection shall be held in Springfield or Chicago, at
22    whichever location is the more convenient for the majority
23    of persons who are parties to the hearing.
24        (7) The State Commission commission shall establish
25    uniform systems of accounts to be kept by all retail
26    licensees having more than 4 employees, and for this



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1    purpose the State Commission commission may classify all
2    retail licensees having more than 4 employees and establish
3    a uniform system of accounts for each class and prescribe
4    the manner in which such accounts shall be kept. The State
5    Commission commission may also prescribe the forms of
6    accounts to be kept by all retail licensees having more
7    than 4 employees, including but not limited to accounts of
8    earnings and expenses and any distribution, payment, or
9    other distribution of earnings or assets, and any other
10    forms, records and memoranda which in the judgment of the
11    commission may be necessary or appropriate to carry out any
12    of the provisions of this Act, including but not limited to
13    such forms, records and memoranda as will readily and
14    accurately disclose at all times the beneficial ownership
15    of such retail licensed business. The accounts, forms,
16    records and memoranda shall be available at all reasonable
17    times for inspection by authorized representatives of the
18    State Commission or by any local liquor control
19    commissioner or his or her authorized representative. The
20    commission, may, from time to time, alter, amend or repeal,
21    in whole or in part, any uniform system of accounts, or the
22    form and manner of keeping accounts.
23        (8) In the conduct of any hearing authorized to be held
24    by the State Commission commission, to appoint, at the
25    commission's discretion, hearing officers to conduct
26    hearings involving complex issues or issues that will



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1    require a protracted period of time to resolve, to examine,
2    or cause to be examined, under oath, any licensee, and to
3    examine or cause to be examined the books and records of
4    such licensee; to hear testimony and take proof material
5    for its information in the discharge of its duties
6    hereunder; to administer or cause to be administered oaths;
7    for any such purpose to issue subpoena or subpoenas to
8    require the attendance of witnesses and the production of
9    books, which shall be effective in any part of this State,
10    and to adopt rules to implement its powers under this
11    paragraph (8).
12        Any circuit court may by order duly entered, require
13    the attendance of witnesses and the production of relevant
14    books subpoenaed by the State Commission and the court may
15    compel obedience to its order by proceedings for contempt.
16        (9) To investigate the administration of laws in
17    relation to alcoholic liquors in this and other states and
18    any foreign countries, and to recommend from time to time
19    to the Governor and through him or her to the legislature
20    of this State, such amendments to this Act, if any, as it
21    may think desirable and as will serve to further the
22    general broad purposes contained in Section 1-2 hereof.
23        (10) To adopt such rules and regulations consistent
24    with the provisions of this Act which shall be necessary
25    for the control, sale or disposition of alcoholic liquor
26    damaged as a result of an accident, wreck, flood, fire or



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1    other similar occurrence.
2        (11) To develop industry educational programs related
3    to responsible serving and selling, particularly in the
4    areas of overserving consumers and illegal underage
5    purchasing and consumption of alcoholic beverages.
6        (11.1) To license persons providing education and
7    training to alcohol beverage sellers and servers for
8    mandatory and non-mandatory training under the Beverage
9    Alcohol Sellers and Servers Education and Training
10    (BASSET) programs and to develop and administer a public
11    awareness program in Illinois to reduce or eliminate the
12    illegal purchase and consumption of alcoholic beverage
13    products by persons under the age of 21. Application for a
14    license shall be made on forms provided by the State
15    Commission.
16        (12) To develop and maintain a repository of license
17    and regulatory information.
18        (13) (Blank).
19        (14) On or before April 30, 2008 and every 2 years
20    thereafter, the State Commission shall present a written
21    report to the Governor and the General Assembly that shall
22    be based on a study of the impact of Public Act 95-634 on
23    the business of soliciting, selling, and shipping wine from
24    inside and outside of this State directly to residents of
25    this State. As part of its report, the State Commission
26    shall provide all of the following information:



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



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



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



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



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



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1    annually sell more than 232,500 gallons of its beer to
2    retail licensees or to brewers, class 1 brewers, and class
3    2 brewers that, pursuant to subsection (e) of Section 6-4
4    of this Act, sell beer, cider, or both beer and cider to
5    non-licensees at their breweries; and (5) has relinquished
6    any brew pub license held by the licensee, including any
7    ownership interest it held in the licensed brew pub.
8        (D) A self-distribution exemption holder shall
9    annually certify to the State Commission its manufacture of
10    beer during the previous 12 months and its anticipated
11    manufacture and sales of beer for the next 12 months. The
12    State Commission may fine, suspend, or revoke a
13    self-distribution exemption after a hearing if it finds
14    that the exemption holder has made a material
15    misrepresentation in its application, violated a revenue
16    or alcoholic beverage law of Illinois, exceeded the
17    manufacture of 930,000 gallons of beer in any calendar year
18    or became part of an affiliated group manufacturing more
19    than 930,000 gallons of beer or any other alcoholic
20    beverage.
21        (E) The State Commission shall issue rules and
22    regulations governing self-distribution exemptions
23    consistent with this Act.
24        (F) Nothing in this paragraph (18) shall prohibit a
25    self-distribution exemption holder from entering into or
26    simultaneously having a distribution agreement with a



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1    licensed Illinois importing distributor or a distributor.
2    If a self-distribution exemption holder enters into a
3    distribution agreement and has assigned distribution
4    rights to an importing distributor or distributor, then the
5    self-distribution exemption holder's distribution rights
6    in the assigned territories shall cease in a reasonable
7    time not to exceed 60 days.
8        (G) It is the intent of this paragraph (18) to promote
9    and continue orderly markets. The General Assembly finds
10    that in order to preserve Illinois' regulatory
11    distribution system, it is necessary to create an exception
12    for smaller manufacturers in order to afford and allow such
13    smaller manufacturers of beer access to the marketplace in
14    order to develop a customer base without impairing the
15    integrity of the 3-tier system.
16    (b) On or before April 30, 1999, the Commission shall
17present a written report to the Governor and the General
18Assembly that shall be based on a study of the impact of Public
19Act 90-739 on the business of soliciting, selling, and shipping
20alcoholic liquor from outside of this State directly to
21residents of this State.
22    As part of its report, the Commission shall provide the
23following information:
24        (i) the amount of State excise and sales tax revenues
25    generated as a result of Public Act 90-739;
26        (ii) the amount of licensing fees received as a result



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1    of Public Act 90-739;
2        (iii) the number of reported violations, the number of
3    cease and desist notices issued by the Commission, the
4    number of notices of violations issued to the Department of
5    Revenue, and the number of notices and complaints of
6    violations to law enforcement officials.
7(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
8100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.
98-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
10revised 10-24-18.)
11    (235 ILCS 5/8-2)  (from Ch. 43, par. 159)
12    Sec. 8-2. Payments; reports. It is the duty of each
13manufacturer with respect to alcoholic liquor produced or
14imported by such manufacturer, or purchased tax-free by such
15manufacturer from another manufacturer or importing
16distributor, and of each importing distributor as to alcoholic
17liquor purchased by such importing distributor from foreign
18importers or from anyone from any point in the United States
19outside of this State or purchased tax-free from another
20manufacturer or importing distributor, to pay the tax imposed
21by Section 8-1 to the Department of Revenue on or before the
2215th day of the calendar month following the calendar month in
23which such alcoholic liquor is sold or used by such
24manufacturer or by such importing distributor other than in an
25authorized tax-free manner or to pay that tax electronically as



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1provided in this Section.
2    Each manufacturer and each importing distributor shall
3make payment under one of the following methods: (1) on or
4before the 15th day of each calendar month, file in person or
5by United States first-class mail, postage pre-paid, with the
6Department of Revenue, on forms prescribed and furnished by the
7Department, a report in writing in such form as may be required
8by the Department in order to compute, and assure the accuracy
9of, the tax due on all taxable sales and uses of alcoholic
10liquor occurring during the preceding month. Payment of the tax
11in the amount disclosed by the report shall accompany the
12report or, (2) on or before the 15th day of each calendar
13month, electronically file with the Department of Revenue, on
14forms prescribed and furnished by the Department, an electronic
15report in such form as may be required by the Department in
16order to compute, and assure the accuracy of, the tax due on
17all taxable sales and uses of alcoholic liquor occurring during
18the preceding month. An electronic payment of the tax in the
19amount disclosed by the report shall accompany the report. A
20manufacturer or distributor who files an electronic report and
21electronically pays the tax imposed pursuant to Section 8-1 to
22the Department of Revenue on or before the 15th day of the
23calendar month following the calendar month in which such
24alcoholic liquor is sold or used by that manufacturer or
25importing distributor other than in an authorized tax-free
26manner shall pay to the Department the amount of the tax



10100HB2577sam001- 21 -LRB101 06994 RPS 60430 a

1imposed pursuant to Section 8-1, less a discount which is
2allowed to reimburse the manufacturer or importing distributor
3for the expenses incurred in keeping and maintaining records,
4preparing and filing the electronic returns, remitting the tax,
5and supplying data to the Department upon request.
6    The discount shall be in an amount as follows:
7        (1) For original returns due on or after January 1,
8    2003 through September 30, 2003, the discount shall be
9    1.75% or $1,250 per return, whichever is less;
10        (2) For original returns due on or after October 1,
11    2003 through September 30, 2004, the discount shall be 2%
12    or $3,000 per return, whichever is less; and
13        (3) For original returns due on or after October 1,
14    2004, the discount shall be 2% or $2,000 per return,
15    whichever is less.
16    The Department may, if it deems it necessary in order to
17insure the payment of the tax imposed by this Article, require
18returns to be made more frequently than and covering periods of
19less than a month. Such return shall contain such further
20information as the Department may reasonably require.
21    It shall be presumed that all alcoholic liquors acquired or
22made by any importing distributor or manufacturer have been
23sold or used by him in this State and are the basis for the tax
24imposed by this Article unless proven, to the satisfaction of
25the Department, that such alcoholic liquors are (1) still in
26the possession of such importing distributor or manufacturer,



10100HB2577sam001- 22 -LRB101 06994 RPS 60430 a

1or (2) prior to the termination of possession have been lost by
2theft or through unintentional destruction, or (3) that such
3alcoholic liquors are otherwise exempt from taxation under this
5    If any payment provided for in this Section exceeds the
6manufacturer's or importing distributor's liabilities under
7this Act, as shown on an original report, the manufacturer or
8importing distributor may credit such excess payment against
9liability subsequently to be remitted to the Department under
10this Act, in accordance with reasonable rules adopted by the
11Department. If the Department subsequently determines that all
12or any part of the credit taken was not actually due to the
13manufacturer or importing distributor, the manufacturer's or
14importing distributor's discount shall be reduced by an amount
15equal to the difference between the discount as applied to the
16credit taken and that actually due, and the manufacturer or
17importing distributor shall be liable for penalties and
18interest on such difference.
19    The Department may require any foreign importer to file
20monthly information returns, by the 15th day of the month
21following the month which any such return covers, if the
22Department determines this to be necessary to the proper
23performance of the Department's functions and duties under this
24Act. Such return shall contain such information as the
25Department may reasonably require.
26    Every manufacturer and importing distributor, except for a



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1manufacturer or importing distributor that in the preceding
2year had less than $50,000 of tax liability under this Article,
3shall also file, with the Department, a bond in an amount not
4less than $1,000 and not to exceed $100,000 on a form to be
5approved by, and with a surety or sureties satisfactory to, the
6Department. Such bond shall be conditioned upon the
7manufacturer or importing distributor paying to the Department
8all monies becoming due from such manufacturer or importing
9distributor under this Article. The Department shall fix the
10penalty of such bond in each case, taking into consideration
11the amount of alcoholic liquor expected to be sold and used by
12such manufacturer or importing distributor, and the penalty
13fixed by the Department shall be sufficient, in the
14Department's opinion, to protect the State of Illinois against
15failure to pay any amount due under this Article, but the
16amount of the penalty fixed by the Department shall not exceed
17twice the amount of tax liability of a monthly return, nor
18shall the amount of such penalty be less than $1,000. The
19Department shall notify the State Commission of the
20Department's approval or disapproval of any such
21manufacturer's or importing distributor's bond, or of the
22termination or cancellation of any such bond, or of the
23Department's direction to a manufacturer or importing
24distributor that he must file additional bond in order to
25comply with this Section. The Commission shall not issue a
26license to any applicant for a manufacturer's or importing



10100HB2577sam001- 24 -LRB101 06994 RPS 60430 a

1distributor's license unless the Commission has received a
2notification from the Department showing that such applicant
3has filed a satisfactory bond with the Department hereunder and
4that such bond has been approved by the Department. Failure by
5any licensed manufacturer or importing distributor to keep a
6satisfactory bond in effect with the Department or to furnish
7additional bond to the Department, when required hereunder by
8the Department to do so, shall be grounds for the revocation or
9suspension of such manufacturer's or importing distributor's
10license by the Commission. If a manufacturer or importing
11distributor fails to pay any amount due under this Article, his
12bond with the Department shall be deemed forfeited, and the
13Department may institute a suit in its own name on such bond.
14    After notice and opportunity for a hearing the State
15Commission may revoke or suspend the license of any
16manufacturer or importing distributor who fails to comply with
17the provisions of this Section. Notice of such hearing and the
18time and place thereof shall be in writing and shall contain a
19statement of the charges against the licensee. Such notice may
20be given by United States registered or certified mail with
21return receipt requested, addressed to the person concerned at
22his last known address and shall be given not less than 7 days
23prior to the date fixed for the hearing. An order revoking or
24suspending a license under the provisions of this Section may
25be reviewed in the manner provided in Section 7-10 of this Act.
26No new license shall be granted to a person whose license has



10100HB2577sam001- 25 -LRB101 06994 RPS 60430 a

1been revoked for a violation of this Section or, in case of
2suspension, shall such suspension be terminated until he has
3paid to the Department all taxes and penalties which he owes
4the State under the provisions of this Act.
5    Every manufacturer or importing distributor who has, as
6verified by the Department, continuously complied with the
7conditions of the bond under this Act for a period of 2 years
8shall be considered to be a prior continuous compliance
9taxpayer. In determining the consecutive period of time for
10qualification as a prior continuous compliance taxpayer, any
11consecutive period of time of qualifying compliance
12immediately prior to the effective date of this amendatory Act
13of 1987 shall be credited to any manufacturer or importing
15    A manufacturer or importing distributor that is a prior
16continuous compliance taxpayer under this Section and becomes a
17successor as the result of an acquisition, merger, or
18consolidation of a manufacturer or importing distributor shall
19be deemed to be a prior continuous compliance taxpayer with
20respect to the acquired, merged, or consolidated entity.
21    Every prior continuous compliance taxpayer shall be exempt
22from the bond requirements of this Act until the Department has
23determined the taxpayer to be delinquent in the filing of any
24return or deficient in the payment of any tax under this Act.
25Any taxpayer who fails to pay an admitted or established
26liability under this Act may also be required to post bond or



10100HB2577sam001- 26 -LRB101 06994 RPS 60430 a

1other acceptable security with the Department guaranteeing the
2payment of such admitted or established liability.
3    The Department shall discharge any surety and shall release
4and return any bond or security deposit assigned, pledged or
5otherwise provided to it by a taxpayer under this Section
6within 30 days after: (1) such taxpayer becomes a prior
7continuous compliance taxpayer; or (2) such taxpayer has ceased
8to collect receipts on which he is required to remit tax to the
9Department, has filed a final tax return, and has paid to the
10Department an amount sufficient to discharge his remaining tax
11liability as determined by the Department under this Act.
12(Source: P.A. 100-1171, eff. 1-4-19.)
13    (235 ILCS 5/10-1)  (from Ch. 43, par. 183)
14    Sec. 10-1. Violations; penalties. Whereas a substantial
15threat to the sound and careful control, regulation, and
16taxation of the manufacture, sale, and distribution of
17alcoholic liquors exists by virtue of individuals who
18manufacture, import, distribute, or sell alcoholic liquors
19within the State without having first obtained a valid license
20to do so, and whereas such threat is especially serious along
21the borders of this State, and whereas such threat requires
22immediate correction by this Act, by active investigation and
23prosecution by the State Commission, law enforcement
24officials, and prosecutors, and by prompt and strict
25enforcement through the courts of this State to punish



10100HB2577sam001- 27 -LRB101 06994 RPS 60430 a

1violators and to deter such conduct in the future:
2    (a) Any person who manufactures, imports for distribution
3or use, transports from outside this State into this State, or
4distributes or sells 108 liters (28.53 gallons) or more of
5wine, 45 liters (11.88 gallons) or more of distilled spirits,
6or 118 liters (31.17 gallons) or more of beer at any place
7within the State without having first obtained a valid license
8to do so under the provisions of this Act shall be guilty of a
9Class 4 felony for each offense. However, any person who was
10duly licensed under this Act and whose license expired within
1130 days prior to a violation shall be guilty of a business
12offense and fined not more than $1,000 for the first such
13offense and shall be guilty of a Class 4 felony for each
14subsequent offense.
15    Any person who manufactures, imports for distribution,
16transports from outside this State into this State for sale or
17resale in this State, or distributes or sells less than 108
18liters (28.53 gallons) of wine, less than 45 liters (11.88
19gallons) of distilled spirits, or less than 118 liters (31.17
20gallons) of beer at any place within the State without having
21first obtained a valid license to do so under the provisions of
22this Act shall be guilty of a business offense and fined not
23more than $1,000 for the first such offense and shall be guilty
24of a Class 4 felony for each subsequent offense. This
25subsection does not apply to a motor carrier or freight
26forwarder, as defined in Section 13102 of Title 49 of the



10100HB2577sam001- 28 -LRB101 06994 RPS 60430 a

1United States Code, an air carrier, as defined in Section 40102
2of Title 49 of the United States Code, or a rail carrier, as
3defined in Section 10102 of Title 49 of the United States Code.
4    Any person who: (1) both has been issued an initial cease
5and desist notice from the State Commission; and (2) for
6compensation, does any of the following: (i) ships alcoholic
7liquor into this State without a license authorized by Section
85-1 issued by the State Commission or in violation of that
9license; or (ii) manufactures, imports for distribution,
10transports from outside this State into this State for sale or
11resale in this State, or distributes or sells alcoholic liquors
12at any place without having first obtained a valid license to
13do so is guilty of a Class 4 felony for each offense.
14    (b) (1) Any retailer, caterer retailer, brew pub, special
15event retailer, special use permit holder, homebrewer special
16event permit holder, or craft distiller tasting permit holder
17who knowingly causes alcoholic liquors to be imported directly
18into the State of Illinois from outside of the State for the
19purpose of furnishing, giving, or selling to another, except
20when having received the product from a duly licensed
21distributor or importing distributor, licensed in this State,
22who knowingly causes to furnish, give, sell, or otherwise being
23within the State, any alcoholic liquor destined to be used,
24distributed, consumed or sold in another state, unless such
25alcoholic liquor was received in this State by a duly licensed
26distributor, or importing distributors shall have his license



10100HB2577sam001- 29 -LRB101 06994 RPS 60430 a

1suspended for 30 7 days for the first offense and for the
2second offense, shall have his license revoked by the
4    (2) In the event the State Commission receives a certified
5copy of a final order from a foreign jurisdiction that an
6Illinois retail licensee has been found to have violated that
7foreign jurisdiction's laws, rules, or regulations concerning
8the importation of alcoholic liquor into that foreign
9jurisdiction, the violation may be grounds for the State
10Commission to revoke, suspend, or refuse to issue or renew a
11license, to impose a fine, or to take any additional action
12provided by this Act with respect to the Illinois retail
13license or licensee. Any such action on the part of the State
14Commission shall be in accordance with this Act and
15implementing rules.
16    For the purposes of paragraph (2): (i) "foreign
17jurisdiction" means a state, territory, or possession of the
18United States, the District of Columbia, or the Commonwealth of
19Puerto Rico, and (ii) "final order" means an order or judgment
20of a court or administrative body that determines the rights of
21the parties respecting the subject matter of the proceeding,
22that remains in full force and effect, and from which no appeal
23can be taken.
24    (c) Any person who shall make any false statement or
25otherwise violates any of the provisions of this Act in
26obtaining any license hereunder, or who having obtained a



10100HB2577sam001- 30 -LRB101 06994 RPS 60430 a

1license hereunder shall violate any of the provisions of this
2Act with respect to the manufacture, possession, distribution
3or sale of alcoholic liquor, or with respect to the maintenance
4of the licensed premises, or shall violate any other provision
5of this Act, shall for a first offense be guilty of a petty
6offense and fined not more than $500, and for a second or
7subsequent offense shall be guilty of a Class B misdemeanor.
8    (c-5) Any owner of an establishment that serves alcohol on
9its premises, if more than 50% of the establishment's gross
10receipts within the prior 3 months is from the sale of alcohol,
11who knowingly fails to prohibit concealed firearms on its
12premises or who knowingly makes a false statement or record to
13avoid the prohibition of concealed firearms on its premises
14under the Firearm Concealed Carry Act shall be guilty of a
15business offense with a fine up to $5,000.
16    (d) Each day any person engages in business as a
17manufacturer, foreign importer, importing distributor,
18distributor or retailer in violation of the provisions of this
19Act shall constitute a separate offense.
20    (e) Any person, under the age of 21 years who, for the
21purpose of buying, accepting or receiving alcoholic liquor from
22a licensee, represents that he is 21 years of age or over shall
23be guilty of a Class A misdemeanor.
24    (f) In addition to the penalties herein provided, any
25person licensed as a wine-maker in either class who
26manufactures more wine than authorized by his license shall be



10100HB2577sam001- 31 -LRB101 06994 RPS 60430 a

1guilty of a business offense and shall be fined $1 for each
2gallon so manufactured.
3    (g) A person shall be exempt from prosecution for a
4violation of this Act if he is a peace officer in the
5enforcement of the criminal laws and such activity is approved
6in writing by one of the following:
7        (1) In all counties, the respective State's Attorney;
8        (2) The Director of State Police under Section 2605-10,
9    2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
10    2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
11    2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
12    2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
13    2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
14    2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
15    2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
16    Department of State Police Law (20 ILCS 2605/2605-10,
17    2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
18    2605/2605-110, 2605/2605-115, 2605/2605-120,
19    2605/2605-130, 2605/2605-140, 2605/2605-190,
20    2605/2605-200, 2605/2605-205, 2605/2605-210,
21    2605/2605-215, 2605/2605-250, 2605/2605-275,
22    2605/2605-300, 2605/2605-305, 2605/2605-315,
23    2605/2605-325, 2605/2605-335, 2605/2605-340,
24    2605/2605-350, 2605/2605-355, 2605/2605-360,
25    2605/2605-365, 2605/2605-375, 2605/2605-390,
26    2605/2605-400, 2605/2605-405, 2605/2605-420,



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1    2605/2605-430, 2605/2605-435, 2605/2605-500,
2    2605/2605-525, or 2605/2605-550); or
3        (3) In cities over 1,000,000, the Superintendent of
4    Police.
5(Source: P.A. 98-63, eff. 7-9-13; 99-904, eff. 1-1-17.)
6    (235 ILCS 5/10-7.1)  (from Ch. 43, par. 189.1)
7    Sec. 10-7.1. The State Commission, upon receipt of a
8complaint or upon having knowledge that any person is engaged
9in the business as a manufacturer, importing distributor,
10distributor, or retailer without a license or valid license,
11shall conduct an investigation. If, after conducting an
12investigation, the State Commission is satisfied that the
13alleged conduct occurred or is occurring, it may issue a cease
14and desist notice as provided in this Act, issue civil
15penalties as provided in this Act, notify the Department of
16Revenue and the local liquor authority, or and file a complaint
17with the State's Attorney's Office of the County where the
18incident occurred or with the Attorney General initiate an
19investigation with the appropriate law enforcement officials.
20(Source: P.A. 90-739, eff. 8-13-98.)
21    Section 99. Effective date. This Act takes effect upon
22becoming law, except that the changes to Section 8-2 of the
23Liquor Control Act of 1934 take effect upon becoming law.".