State of Illinois
91st General Assembly

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 1        AN ACT to  amend  the  Liquor  Control  Act  of  1934  by
 2    changing Section 6-2 and adding Section 6-9.1.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Liquor Control Act of 1934 is amended  by
 6    changing Section 6-2 and adding Section 6-9.1 as follows:

 7        (235 ILCS 5/6-2) (from Ch. 43, par. 120)
 8        Sec.  6-2.   Issuance  of  licenses  to  certain  persons
 9    prohibited.
10        (a)  Except  as  otherwise provided in subsection (b), no
11    license of any kind issued by the  State  Commission  or  any
12    local commission shall be issued to:
13             (1)  A  person  who  is  not a resident of any city,
14        village or county in which the premises  covered  by  the
15        license  are  located; except in case of railroad or boat
16        licenses;
17             (2)  A person who  is  not  of  good  character  and
18        reputation in the community in which he resides;
19             (3)  A  person  who  is  not a citizen of the United
20        States;
21             (4)  A person who has been  convicted  of  a  felony
22        under  any  Federal  or  State law, unless the Commission
23        determines  that  such  person  has   been   sufficiently
24        rehabilitated   to   warrant   the   public  trust  after
25        considering  matters   set   forth   in   such   person's
26        application  and  the  Commission's  investigation.   The
27        burden  of proof of sufficient rehabilitation shall be on
28        the applicant;
29             (5)  A person who has been convicted  of  being  the
30        keeper or is keeping a house of ill fame;
31             (6)  A person who has been convicted of pandering or

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 1        other   crime  or  misdemeanor  opposed  to  decency  and
 2        morality;
 3             (7)  A person whose license issued  under  this  Act
 4        has been revoked for cause;
 5             (8)  A  person  who  at  the time of application for
 6        renewal of any license  issued  hereunder  would  not  be
 7        eligible for such license upon a first application;
 8             (9)  A  copartnership,  if  any  general partnership
 9        thereof, or any limited partnership thereof, owning  more
10        than 5% of the aggregate limited partner interest in such
11        copartnership  would not be eligible to receive a license
12        hereunder for any reason other than residence within  the
13        political  subdivision,  unless  residency is required by
14        local ordinance;
15             (10)  A corporation,  if  any  officer,  manager  or
16        director  thereof,  or    any stockholder or stockholders
17        owning in the aggregate more than 5% of the stock of such
18        corporation, would not be eligible to receive  a  license
19        hereunder  for  any  reason  other  than  citizenship and
20        residence within the political subdivision;
21             (10a)  A corporation unless it  is  incorporated  in
22        Illinois,  or unless it is a foreign corporation which is
23        qualified under the Business Corporation Act of  1983  to
24        transact business in Illinois;
25             (11)  A  person whose place of business is conducted
26        by a  manager  or  agent  unless  the  manager  or  agent
27        possesses   the   same  qualifications  required  by  the
28        licensee;
29             (12)  A person who has been convicted of a violation
30        of any Federal or State law concerning  the  manufacture,
31        possession or sale of alcoholic liquor, subsequent to the
32        passage  of  this Act or has forfeited his bond to appear
33        in court to answer charges for any such violation;
34             (13)  A person who does  not  beneficially  own  the
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 1        premises  for which a license is sought, or does not have
 2        a lease thereon for the full period for which the license
 3        is to be issued;
 4             (14)  Any law enforcing public  official,  including
 5        members  of  local liquor control commissions, any mayor,
 6        alderman, or member of the city  council  or  commission,
 7        any  president  of  the  village  board  of trustees, any
 8        member of a village board of trustees, or  any  president
 9        or  member  of a county board; and no such official shall
10        be  interested  directly  in  the  manufacture,  sale  or
11        distribution of alcoholic liquor, except that license may
12        be granted to such official in relation to premises which
13        are not located  within  the  territory  subject  to  the
14        jurisdiction  of  that  official  if the issuance of such
15        license  is  approved  by  the   State   Liquor   Control
16        Commission;
17             (15)  A  person who is not a beneficial owner of the
18        business to be operated by the licensee;
19             (16)  A person who has been convicted of a  gambling
20        offense  as  proscribed  by  any  of  subsections (a) (3)
21        through (a) (11) of Section 28-1 of, or as proscribed  by
22        Section  28-1.1 or 28-3 of, the Criminal Code of 1961, or
23        as proscribed  by  a  statute  replaced  by  any  of  the
24        aforesaid statutory provisions;
25             (17)  A  person or entity to whom a federal wagering
26        stamp has been issued by the federal  government,  unless
27        the  person  or entity is eligible to be issued a license
28        under the Raffles Act or the Illinois Pull Tabs  and  Jar
29        Games Act;.
30             (18)  A  person, if required to register pursuant to
31        and in accordance with Section 6-9 of this Act,  who  has
32        failed  to  submit  all  required registration statements
33        with the Commission;
34             (19)  A person, if governed by Section 6-9.1 of this
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 1        Act, who has  failed  to  submit  the  required  verified
 2        statement under Section 6-9.1 to the Commission.
 3        (b)  A  criminal  conviction  of  a  corporation  is  not
 4    grounds  for  the  denial,  suspension,  or  revocation  of a
 5    license applied  for  or  held  by  the  corporation  if  the
 6    criminal  conviction was not the result of a violation of any
 7    federal or State law concerning the  manufacture,  possession
 8    or  sale  of  alcoholic  liquor,  the offense that led to the
 9    conviction did not  result  in  any  financial  gain  to  the
10    corporation   and   the   corporation   has   terminated  its
11    relationship  with  each  director,  officer,  employee,   or
12    controlling shareholder whose actions directly contributed to
13    the  conviction  of  the  corporation.  The  Commission shall
14    determine if all provisions of this subsection (b) have  been
15    met  before  any  action  on  the  corporation's  license  is
16    initiated.
17    (Source: P.A. 88-652, eff. 9-16-94; 89-250, eff. 1-1-96.)

18        (235 ILCS 5/6-9.1 new)
19        Sec. 6-9.1  Registration statement.
20        (a)  The  legislature  hereby finds and declares that for
21    the purpose of  the  State  regulating  the  importation  and
22    distribution of beer and avoiding the unnecessary control and
23    dominance   accompanying  consolidation  with  the  alcoholic
24    liquor industry primarily  among  manufacturers  and  foreign
25    importers,  it has been and continues to be a matter or vital
26    interest to  the  State  to  preserve  the  independence  and
27    separateness  within  the distribution system and prevent the
28    evils  resulting  from  control  and  dominance  within   the
29    alcoholic liquor industry known as "tied houses".
30        (b)  A  manufacturer,  non-resident  dealer,  or  foreign
31    importer  who  has  granted  to any distributor and importing
32    distributor the right to sell at wholesale any beer  and  who
33    is  required  to  register  with  the  State Commission under
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 1    Section 6-9 of this Act shall submit to the State  Commission
 2    with  such  registration  statement  affirming in writing and
 3    under oath the following:
 4             (1)  The law of this State governs the  distribution
 5        agreement   or  arrangement  with  all  distributors  and
 6        importing  distributors  registered  or  required  to  be
 7        registered with the State Commission pursuant to  Section
 8        6-9 of this Act.
 9             (2)  All causes of action that directly relate to or
10        stem   from  the  relationship  with  a  distributor  and
11        importing  distributor  or   the   agreement   with   the
12        distributor  and  importing distributor shall be filed in
13        this State or a federal court of  competent  jurisdiction
14        located in this State.
15             (3)  The  distributor and importing distributor were
16        offered in writing the option and opportunity to  reject,
17        if  required by the agreement, mandatory arbitration as a
18        method  of  alternative  dispute  resolution   and   were
19        afforded  the  opportunity  to  select  judicial remedies
20        instead of arbitration.
21             (4)  The  manufacturer,  non-resident   dealer,   or
22        foreign  importer does not directly or indirectly control
23        the  appointment,  hiring,  or  firing  of  any  officer,
24        director, manager, or  employee  of  the  distributor  or
25        importing  distributor other than to the extent permitted
26        by law.
27             (5)  The  manufacturer,  non-resident   dealer,   or
28        foreign  importer  does not directly or indirectly fix or
29        maintain the price at which a distributor  and  importing
30        distributor may sell beer.
31        (c)  A  manufacturer,  non-resident  dealer,  or  foreign
32    importer  with  respect  to existing registrations filed with
33    the Commission must within 90 days of the effective  date  of
34    this  amendatory  Act of 1999 furnish a verified statement to
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 1    the Commission for  all  such  existing  registrations.   The
 2    Commission  shall, within 30 days of receipt of such verified
 3    statements, furnish a copy of the verified statement  to  the
 4    distributor or importing distributor who has been granted the
 5    right to sell the beer at wholesale.

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

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