Public Act 096-0446
 
HB0604 Enrolled LRB096 07343 RLC 17429 b

    AN ACT concerning tobacco.
 
    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 6-16.1 as follows:
 
    (235 ILCS 5/3-12)  (from Ch. 43, par. 108)
    Sec. 3-12. Powers and duties of State Commission.
    (a) The State commission shall have the following powers,
functions and duties:
        (1) To receive applications and to issue licenses to
    manufacturers, foreign importers, importing distributors,
    distributors, non-resident dealers, on premise consumption
    retailers, off premise sale retailers, special event
    retailer licensees, special use permit licenses, auction
    liquor licenses, brew pubs, caterer retailers,
    non-beverage users, railroads, including owners and
    lessees of sleeping, dining and cafe cars, airplanes,
    boats, brokers, and wine maker's premises licensees in
    accordance with the provisions of this Act, and to suspend
    or revoke such licenses upon the State commission's
    determination, upon notice after hearing, that a licensee
    has violated any provision of this Act or any rule or
    regulation issued pursuant thereto and in effect for 30
    days prior to such violation. Except in the case of an
    action taken pursuant to a violation of Section 6-3, 6-5,
    or 6-9, any action by the State Commission to suspend or
    revoke a licensee's license may be limited to the license
    for the specific premises where the violation occurred.
        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 appoint, at the commission's
    discretion, hearing officers to conduct hearings involving
    complex issues or issues that will require a protracted
    period of time to resolve, to examine, or cause to be
    examined, under oath, any licensee, and to examine or cause
    to be examined the books and records of such licensee; to
    hear testimony and take proof material for its information
    in the discharge of its duties hereunder; to administer or
    cause to be administered oaths; for any such purpose to
    issue subpoena or subpoenas to require the attendance of
    witnesses and the production of books, which shall be
    effective in any part of this State, and to adopt rules to
    implement its powers under this paragraph (8).
        Any Circuit Court may by order duly entered, require
    the attendance of witnesses and the production of relevant
    books subpoenaed by the State commission and the court may
    compel obedience to its order by proceedings for contempt.
        (9) To investigate the administration of laws in
    relation to alcoholic liquors in this and other states and
    any foreign countries, and to recommend from time to time
    to the Governor and through him or her to the legislature
    of this State, such amendments to this Act, if any, as it
    may think desirable and as will serve to further the
    general broad purposes contained in Section 1-2 hereof.
        (10) To adopt such rules and regulations consistent
    with the provisions of this Act which shall be necessary
    for the control, sale or disposition of alcoholic liquor
    damaged as a result of an accident, wreck, flood, fire or
    other similar occurrence.
        (11) To develop industry educational programs related
    to responsible serving and selling, particularly in the
    areas of overserving consumers and illegal underage
    purchasing and consumption of alcoholic beverages.
        (11.1) To license persons providing education and
    training to alcohol beverage sellers and servers under the
    Beverage Alcohol Sellers and Servers Education and
    Training (BASSET) programs and to develop and administer a
    public awareness program in Illinois to reduce or eliminate
    the illegal purchase and consumption of alcoholic beverage
    products by persons under the age of 21. Application for a
    license shall be made on forms provided by the State
    Commission.
        (12) To develop and maintain a repository of license
    and regulatory information.
        (13) On or before January 15, 1994, the Commission
    shall issue a written report to the Governor and General
    Assembly that is to be based on a comprehensive study of
    the impact on and implications for the State of Illinois of
    Section 1926 of the Federal 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 and Distribution of Tobacco Products 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.
        (14) On or before April 30, 2008 and every 2 years
    thereafter, the Commission shall present a written report
    to the Governor and the General Assembly that shall be
    based on a study of the impact of this amendatory Act of
    the 95th General Assembly on the business of soliciting,
    selling, and shipping wine from inside and outside of this
    State directly to residents of this State. As part of its
    report, the Commission shall provide all of the following
    information:
            (A) The amount of State excise and sales tax
        revenues generated.
            (B) The amount of licensing fees received.
            (C) The number of cases of wine shipped from inside
        and outside of this State directly to residents of this
        State.
            (D) The number of alcohol compliance operations
        conducted.
            (E) The number of winery shipper's licenses
        issued.
            (F) The number of each of the following: reported
        violations; cease and desist notices issued by the
        Commission; notices of violations issued by the
        Commission and to the Department of Revenue; and
        notices and complaints of violations to law
        enforcement officials, including, without limitation,
        the Illinois Attorney General and the U.S. Department
        of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
        (15) As a means to reduce the underage consumption of
    alcoholic liquors, the Commission shall conduct alcohol
    compliance operations to investigate whether businesses
    that are soliciting, selling, and shipping wine from inside
    or outside of this State directly to residents of this
    State are licensed by this State or are selling or
    attempting to sell wine to persons under 21 years of age in
    violation of this Act.
        (16) The Commission shall, in addition to notifying any
    appropriate law enforcement agency, submit notices of
    complaints or violations of Sections 6-29 and 6-29.1 by
    persons who do not hold a winery shipper's license under
    this amendatory Act to the Illinois Attorney General and to
    the U.S. Department of Treasury's Alcohol and Tobacco Tax
    and Trade Bureau.
        (17) (A) A person licensed to make wine under the laws
    of another state who has a winery shipper's license under
    this amendatory Act and annually produces less than 25,000
    gallons of wine or a person who has a first-class or
    second-class wine manufacturer's license, a first-class or
    second-class wine-maker's license, or a limited wine
    manufacturer's license under this Act and annually
    produces less than 25,000 gallons of wine may make
    application to the Commission for a self-distribution
    exemption to allow the sale of not more than 5,000 gallons
    of the exemption holder's wine to retail licensees per
    year.
            (B) In the application, which shall be sworn under
        penalty of perjury, such person shall state (1) the
        date it was established; (2) its volume of production
        and sales for each year since its establishment; (3)
        its efforts to establish distributor relationships;
        (4) that a self-distribution exemption is necessary to
        facilitate the marketing of its wine; and (5) that it
        will comply with the liquor and revenue laws of the
        United States, this State, and any other state where it
        is licensed.
            (C) The Commission shall approve the application
        for a self-distribution exemption if such person: (1)
        is in compliance with State revenue and liquor laws;
        (2) is not a member of any affiliated group that
        produces more than 25,000 gallons of wine per annum or
        produces any other alcoholic liquor; (3) will not
        annually produce for sale more than 25,000 gallons of
        wine; and (4) will not annually sell more than 5,000
        gallons of its wine to retail licensees.
            (D) A self-distribution exemption holder shall
        annually certify to the Commission its production of
        wine in the previous 12 months and its anticipated
        production and sales for the next 12 months. The
        Commission may fine, suspend, or revoke a
        self-distribution exemption after a hearing if it
        finds that the exemption holder has made a material
        misrepresentation in its application, violated a
        revenue or liquor law of Illinois, exceeded production
        of 25,000 gallons of wine in any calendar year, or
        become part of an affiliated group producing more than
        25,000 gallons of wine or any other alcoholic liquor.
            (E) Except in hearings for violations of this Act
        or amendatory Act or a bona fide investigation by duly
        sworn law enforcement officials, the Commission, or
        its agents, the Commission shall maintain the
        production and sales information of a
        self-distribution exemption holder as confidential and
        shall not release such information to any person.
            (F) The Commission shall issue regulations
        governing self-distribution exemptions consistent with
        this Section and this Act.
            (G) Nothing in this subsection (17) shall prohibit
        a self-distribution exemption holder from entering
        into or simultaneously having a distribution agreement
        with a licensed Illinois distributor.
            (H) It is the intent of this subsection (17) to
        promote and continue orderly markets. The General
        Assembly finds that in order to preserve Illinois'
        regulatory distribution system it is necessary to
        create an exception for smaller makers of wine as their
        wines are frequently adjusted in varietals, mixes,
        vintages, and taste to find and create market niches
        sometimes too small for distributor or importing
        distributor business strategies. Limited
        self-distribution rights will afford and allow smaller
        makers of wine access to the marketplace in order to
        develop a customer base without impairing the
        integrity of the 3-tier system.
    (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. 95-634, eff. 6-1-08.)
 
    (235 ILCS 5/6-16.1)
    Sec. 6-16.1. Enforcement actions.
    (a) A licensee or an officer, associate, member,
representative, agent, or employee of a licensee may sell,
give, or deliver alcoholic liquor to a person under the age of
21 years or authorize the sale, gift, or delivery of alcoholic
liquor to a person under the age of 21 years pursuant to a plan
or action to investigate, patrol, or otherwise conduct a "sting
operation" or enforcement action against a person employed by
the licensee or on any licensed premises if the licensee or
officer, associate, member, representative, agent, or employee
of the licensee provides written notice, at least 14 days
before the "sting operation" or enforcement action, unless
governing body of the municipality or county having
jurisdiction sets a shorter period by ordinance, to the law
enforcement agency having jurisdiction, the local liquor
control commissioner, or both. Notice provided under this
Section shall be valid for a "sting operation" or enforcement
action conducted within 60 days of the provision of that
notice, unless the governing body of the municipality or county
having jurisdiction sets a shorter period by ordinance.
    (b) A local liquor control commission or unit of local
government that conducts alcohol and tobacco compliance
operations shall establish a policy and standards for alcohol
and tobacco compliance operations to investigate whether a
licensee is furnishing (1) alcoholic liquor to persons under 21
years of age in violation of this Act or (2) tobacco to persons
in violation of the Sale and Distribution of Tobacco Products
to Minors Act.
    (c) The Illinois Law Enforcement Training Standards Board
shall develop a model policy and guidelines for the operation
of alcohol and tobacco compliance checks by local law
enforcement officers. The Illinois Law Enforcement Training
Standards Board shall also require the supervising officers of
such compliance checks to have met a minimum training standard
as determined by the Board. The Board shall have the right to
waive any training based on current written policies and
procedures for alcohol and tobacco compliance check operations
and in-service training already administered by the local law
enforcement agency, department, or office.
    (d) The provisions of subsections (b) and (c) do not apply
to a home rule unit with more than 2,000,000 inhabitants.
    (e) A home rule unit, other than a home rule unit with more
than 2,000,000 inhabitants, may not regulate enforcement
actions in a manner inconsistent with the regulation of
enforcement actions under this Section. This subsection (e) is
a limitation under subsection (i) of Section 6 of Article VII
of the Illinois Constitution on the concurrent exercise by home
rule units of powers and functions exercised by the State.
    (f) A licensee who is the subject of an enforcement action
or "sting operation" under this Section and is found, pursuant
to the enforcement action, to be in compliance with this Act
shall be notified by the enforcement agency action that no
violation was found within 30 days after the finding.
(Source: P.A. 92-503, eff. 1-1-02; 93-1057, eff. 12-2-04.)
 
    Section 10. The Sale of Tobacco to Minors Act is amended by
changing the title of the Act and Sections 0.01 and 1 as
follows:
 
    (720 ILCS 675/Act title)
An Act to prohibit minors from buying or selling tobacco in
any of its forms, to prohibit selling, giving or furnishing
tobacco, in any of its forms, to minors, and to prohibit the
distribution of tobacco samples and providing penalties
therefor.
 
    (720 ILCS 675/0.01)  (from Ch. 23, par. 2356.9)
    Sec. 0.01. Short title. This Act may be cited as the Sale
and Distribution of Tobacco Products to Minors Act.
(Source: P.A. 86-1324.)
 
    (720 ILCS 675/1)  (from Ch. 23, par. 2357)
    Sec. 1. Prohibition on sale of tobacco to minors;
prohibition on the distribution of tobacco samples to any
person; use of identification cards; vending machines; lunch
wagons; out-of-package sales.
    (a) No minor under 18 years of age shall buy any tobacco
product cigar, cigarette, smokeless tobacco or tobacco in any
of its forms. No person shall sell, buy for, distribute samples
of or furnish any tobacco product cigar, cigarette, smokeless
tobacco or tobacco in any of its forms, to any minor under 18
years of age.
    (a-5) No minor under 16 years of age may sell any tobacco
product cigar, cigarette, smokeless tobacco, or tobacco in any
of its forms at a retail establishment selling tobacco
products. This subsection does not apply to a sales clerk in a
family-owned business which can prove that the sales clerk is
in fact a son or daughter of the owner.
    (a-6) No minor under 18 years of age in the furtherance or
facilitation of obtaining any tobacco product cigar,
cigarette, smokeless tobacco, or tobacco in any of its forms
shall display or use a false or forged identification card or
transfer, alter, or deface an identification card.
    (a-7) A person shall not distribute without charge samples
of any tobacco product to any other person, regardless of age:
        (1) within a retail establishment selling tobacco
    products, unless the retailer has verified the purchaser's
    age with a government issued identification;
        (2) from a lunch wagon; or
        (3) on a public way as a promotion or advertisement of
    a tobacco manufacturer or tobacco product.
    This subsection (a-7) does not apply to the distribution of
a tobacco product sample in any adult-only facility.
    For the purpose of this Section: ,
        "Adult-only facility means a facility or restricted
    area (whether open-air or enclosed) where the operator
    ensures or has a reasonable basis to believe (such as by
    checking identification as required under State law, or by
    checking the identification of any person appearing to be
    under the age of 27) that no person under legal age is
    present. A facility or restricted area need not be
    permanently restricted to persons under legal age to
    constitute an adult-only facility, provided that the
    operator ensures or has a reasonable basis to believe that
    no person under legal age is present during the event or
    time period in question.
        "Lunch wagon" means a mobile vehicle designed and
    constructed to transport food and from which food is sold
    to the general public.
        "Smokeless "smokeless tobacco" means any tobacco
    products that are suitable for dipping or chewing.
        "Tobacco product" means any cigar, cigarette,
    smokeless tobacco, or tobacco in any of its forms.
    (b) Tobacco products listed above may be sold through a
vending machine only if such tobacco products are not placed
together with any non-tobacco product, other than matches, in
the vending machine and the vending machine is in any of the
following locations:
        (1) (Blank).
        (2) Places to which minors under 18 years of age are
    not permitted access.
        (3) Places where alcoholic beverages are sold and
    consumed on the premises and vending machine operation is
    under the direct supervision of the owner or manager.
        (4) (Blank).
        (5) Places where the vending machine can only be
    operated by the owner or an employee over age 18 either
    directly or through a remote control device if the device
    is inaccessible to all customers.
    (c) (Blank) The sale or distribution at no charge of
cigarettes from a lunch wagon engaging in any sales activity
within 1,000 feet of any public or private elementary or
secondary school grounds is prohibited.
    For the purpose of this Section, "lunch wagon" means a
mobile vehicle designed and constructed to transport food and
from which food is sold to the general public.
    (d) The sale or distribution by any person of a tobacco
product listed above, including but not limited to a single or
loose cigarette, that is not contained within a sealed
container, pack, or package as provided by the manufacturer,
which container, pack, or package bears the health warning
required by federal law, is prohibited.
(Source: P.A. 95-905, eff. 1-1-09.)
 
    Section 15. The Display of Tobacco Products Act is amended
by changing Section 15 as follows:
 
    (720 ILCS 677/15)
    Sec. 15. Vending machines. This Act does not prohibit the
sale of tobacco products from vending machines if the location
of the vending machines are in compliance with the provisions
of Section 1 of the Sale and Distribution of Tobacco Products
to Minors Act.
(Source: P.A. 93-886, eff. 1-1-05.)